Unlocking AfCFTA opportunity

The recently held AfCFTA business forum in Cape Town has shown promising signs of progress and growth in inter-African trade. The event brought together policymakers, business leaders, and multilateral agencies with a common goal of unlocking opportunities for trade within the continent. The Chief Executive Officer for Business and Commercial Clients at Standard Bank, William Blackie, expressed his positive sentiments about the forum and the significant strides being made towards enhancing trade across Africa. He highlighted the importance of developing frameworks that foster inter-African trade and spoke about the need to shift towards a model where goods produced in Africa are converted into products and sold within the continent. Blackie emphasized the ongoing improvements in infrastructure across various African countries, pointing out developments such as new airports, expressways, and transport networks. These enhancements are crucial in facilitating the movement of goods within Africa and breaking down barriers to trade. He specifically mentioned the progress made in East African and West African regions in promoting inter-African trade. One of the key themes of the forum was the potential for increased investment in infrastructure and collaboration among African countries. Blackie compared the vision to the development of the Airbus in Europe, where different countries contributed to the construction of parts for the aircraft. He stressed the importance of fostering collaboration and mutual support among African nations to drive the continent forward. Regarding funding for trade initiatives, Blackie highlighted Africa's vast market potential, with a population of 1.3 billion people and a collective GDP exceeding $3.4 trillion. He mentioned various sectors represented at the forum, including pharmaceuticals, technology, and vehicle manufacturing, signaling the broad scope of opportunities for trade and investment in Africa. One significant challenge discussed at the forum was the issue of tariffs and trade costs that could hinder intra-African trade. Blackie acknowledged the need for policy makers to address revenue concerns stemming from reduced tariffs while promoting collaboration and growth within the continent. He emphasized the sentiment of the conference, which recognized the potential for substantial growth by fostering internal collaboration among African nations. In terms of industries expected to benefit from the AfCFTA agreement, Blackie highlighted automotive, extractive, and productive industries as promising sectors. He emphasized the importance of starting from the extraction and production stages and moving up the value chain to promote local trade and economic growth. As a financier operating in various African countries, Standard Bank sees itself as a truly continental bank with a strategic focus on driving growth and development across the continent. Blackie reiterated the bank's commitment to Africa as its home and emphasized the social imperative of supporting the continent's growth and prosperity. The AfCFTA business forum in Cape Town provided a platform for stakeholders to discuss the challenges and opportunities in promoting inter-African trade. With a shared vision of collaboration, investment, and growth, the event set a positive tone for the future of trade and economic development in Africa.