Trademark East Africa CEO on how to unlock continental free trade

The implementation of the continental free trade agreements is seen as a pivotal move to deepen intra-African trade by at least 45 percent. In an exclusive interview with CNBC Africa, David Beer, the CEO of Trade Market South Africa, shed light on the progress and opportunities arising from the African Continental Free Trade Agreement (AfCFTA) rollout. According to Beer, the potential of the AfCFTA in boosting intra-African trade is substantial, tapping into a market of 1.3 billion people. He highlighted the unprecedented political momentum backing the initiative. Concrete progress in trade policy negotiations, including the agreement on a continental tariff book, rules of origin, customs transit border arrangements, and other protocols, signals a positive trajectory for the AfCFTA. Beer lauded the guided trader initiative led by the ASFTA Secretary, aimed at swift implementation of protocols with Pioneer countries as a proof of concept. Recent successful trade missions, like the export of tea and oxide batteries from Kenya to Ghana, underscore the tangible benefits of the trade agreements. The commitment to showcasing short-term gains alongside long-term ambitions bodes well for the growth of intra-African trade. Despite the immense opportunities, the current intra-African trade volume stands at a modest 17 percent, indicating room for growth and improvement. Investment inflows to facilitate trade facilitation across East Africa have been significant, with a marked decrease in freight costs and border processing times. Beer highlighted that over the past decade, costs of freight in East Africa have declined notably, showcasing improved trade facilitation along critical corridors. Efforts to streamline trade documentation processes through electronic single windows have further expedited trade activities. Key initiatives like the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor are poised to unlock new trade avenues, fostering economic growth and bolstering regional competitiveness. Beer emphasized the importance of financial and political investments in developing trade infrastructure and ensuring effective protocol implementation to sustain the momentum of growth. The continent's potential in green exports presents a significant opportunity for leveraging sustainable practices in trade. By embracing eco-friendly transport modalities, such as rail and sea freight, the region can position itself favorably in global markets. This shift aligns with the increasing consumer preference for environment-friendly products, opening new vistas for Africa's export industries. The growing demand for African agricultural exports, notably flowers, coffee, and tea, underscores the need for value addition and enhanced competitiveness in global markets. The region's progress in boosting export competitiveness and productivity signifies a promising outlook for trade expansion. Beer stressed the importance of addressing trade inefficiencies along the supply chain to reduce the exorbitant costs incurred due to administrative clearance, compliance, and logistics challenges. By enhancing trade efficiency through collaborative efforts involving various stakeholders, the region can mitigate unnecessary trade costs and enhance its overall competitiveness. Looking ahead, the accession of new members like the Democratic Republic of the Congo (DRC) to the economic bloc presents fresh opportunities to scale up intra-African trade. Beer highlighted ongoing initiatives to improve border management and streamline trade processes, setting the stage for a seamless integration process for new entrants. The expansion of the East African Community's influence to encompass more countries underscores the region's progress in fostering a conducive environment for trade and economic growth. With concerted efforts and strategic investments, the continent is poised to harness its vast trade potential, driving sustainable economic development and prosperity.