Equity Group, AfCFTA Secretariat join forces to boost trade in Africa

Equity Group Holdings PLC has recently made a significant move by signing a Memorandum of Understanding with the African Continental Free Trade Area Secretariat during the 41st Ordinary Session of the Executive Council of the African Union in Lusaka, Zambia. Dr. James Mwangi, the Group CEO of Equity Group Holdings, shared insights on this groundbreaking agreement in an exclusive interview with CNBC Africa. The MOU aims to operationalize the trade covenants signed by African countries to boost regional trade and accelerate economic recovery across the continent. Dr. Mwangi highlighted that the key objective of this collaboration is to leverage trade as a tool for fostering African recovery and fostering the Continental Free Trade Area's development. By facilitating cross-border trade and creating a continental payment system, Equity Group aims to reduce trade barriers and promote seamless transactions for goods and services exchanged within Africa. Moreover, the initiative is not limited to specific markets where Equity operates, but rather extends continent-wide, demonstrating a Pan-African approach to enhancing regional economic growth and trade facilitation. Through trade finance tools, Equity Group seeks to empower African businesses to engage in trade more effectively and mitigate uncertainties in trade transactions. One of the key aspects of the partnership is the launch of a resilience stimulus plan with seed funding of six million US dollars, targeting critical sectors such as agriculture, mining, processing, manufacturing, trade, and investment. Dr. Mwangi emphasized the importance of enhancing productivity in primary sectors like agriculture and mining, fostering value addition through processing and manufacturing, and attracting global capital to drive industrialization in Africa. The collaboration also aims to formalize the involvement of small and medium enterprises (SMEs) and the informal sector in the supply chain, ensuring their capacity to contribute to the broader economic transformation envisioned by the initiative. By leveraging technology and innovation, particularly to engage young people, the partnership seeks to create a resilient and competitive environment that appeals to the digital generation. Addressing environmental sustainability, Equity Group and AfCFTA Secretariat are committed to promoting green energy and minerals to minimize adverse environmental impacts and ensure sustainable industrialization. This holistic approach underscores the significance of incorporating environmental considerations into the economic recovery and trade promotion agenda. In response to the call for diversification from primary exports, Dr. Mwangi emphasized the need for collective participation across sectors to achieve the goal of industrialization in Africa. He underscored the importance of inclusivity, collaboration, and purpose-driven growth that benefits all stakeholders, leaving no one behind. By fostering a people-centered and inclusive approach to economic recovery and trade promotion, the collaboration between Equity Group and AfCFTA Secretariat reflects a transformative agenda that aims to drive sustainable growth, job creation, and shared prosperity across Africa.