Ethiopian Informer
ADDIS ABABA: June 21 (Ethiopian Informer) — The UN Economic Commission for Africa (ECA) on Friday urged Zimbabwe to embrace the African Continental Free Trade Agreement (AfCFTA) so as to harness its rich natural resources.
“Zimbabwe, having the second largest platinum and chrome deposits and the 5th largest lithium in the world can attract investment capital across the continent as the barriers to free trade and investments are deconstructed through the AfCFTA,” the ECA said on Friday.
Zimbabwe’s ambitious goal of becoming an upper middle country by the year 2030 “is attainable as macro-economic stability consolidates, the export base increases and the economy is diversified,” the ECA said in a statement on Friday.
The AfCFTA, which was launched on March 21 last year in Kigali, capital of Rwanda, had on May 24 added Zimbabwe to its growing list of countries that have deposited their instruments of ratification.
According to the ECA, “good national strategy on the AfCFTA” together with the committed implementation of the continental free trade pact can support Zimbabwe’s efforts of economic renewal and consolidation, the ECA argued.
ECA’s Regional Director for Southern Africa, Said Adejumobi, also commended the South African country for its “bold step” in ratifying the AfCFTA, which went into force 30 days after the minimum threshold of 22 countries having deposited their ratification instruments to the African Union (AU).
The continental free trade pact has so far witnessed 24 countries that have deposited their instruments of ratification to the pan African bloc.
“It’s a step in the right direction and with our efforts here today and tomorrow, Zimbabwe is poised to be a winner in the AfCFTA initiative,” the ECA regional director said.
As Zimbabwe strives to improve its economic prospects after “years of negative growth,” Adejumobi stressed that the AfCFTA “is a win-win situation for the regional and global commitments of Zimbabwe.”
According to the ECA, Zimbabwe’s Transitional Stabilization Programme “speaks to the imperatives of the AfCFTA” and that the “goals of export competitiveness, smart agriculture, and value addition of the country’s mineral resources, resuscitation of the industrial sector, growth of tourism, and promoting a digital economy can seek value and expression in the AfCFTA.”
Senior Expert on Rules of Origin at the AU’s AfCFTA Support Unit, Khauhelo Mawana, also urged AU member countries to establish AfCFTA national forums, which he said is “a very critical step in preparing private sector to do business in the AfCFTA.”
“We fully support member countries’ efforts in bringing together all players in trade to map out how they can benefit from this large market across the continent,” Mawana said.
The AU official also commended regional economic communities and development partners, such as the ECA for their “invaluable inputs towards making the AfCFTA a reality.”
The AfCFTA has laid the foundation for what could be the world’s largest free trade zone by the number of participating countries, covering more than 1.2 billion people with a combined gross domestic product of 2.5 trillion dollars, according to the AU.
Once operational, the free trade pact is projected to boost the level of intra-Africa trade by more than 52 percent by 2020, according to the ECA.
