Durban hosts government & business leaders on AfCFTA opportunities

Durban recently hosted the African Continental Free Trade Agreement (AfCFTA) conference, bringing together trade experts, business leaders, and representatives from government and international organizations. The focus of this year's conference was on the opportunities offered by the Agreement for Small Businesses. Rajen Pillay, Chief Executive Officer at Garuda Capital, shared insights on key priorities, solutions to trade barriers, and the path forward for the AfCFTA. At the conference, Pillay highlighted the progress achieved in reducing tariff restrictions across African countries. However, he noted that trade barriers extend beyond tariffs to logistics, infrastructural backlogs, and transport corridors. These challenges have hindered the realization of the full potential of inter-African trade, impacting the expected growth in trading volumes. One of the key solutions discussed at the conference was the need for substantial infrastructural improvements, particularly in developing transport corridors across the continent. Currently, many road and rail networks essential for efficient trade remain underdeveloped, creating logistical challenges. Pillay emphasized the significance of addressing these infrastructural gaps to facilitate trade and support the AfCFTA's objectives. Despite the progress made, Pillay expressed caution about the pace of integration required for the AfCFTA to reach its full potential. Given that the Agreement involves 54 countries across the continent, dismantling regional trading blocks to establish a continental free trade area will take time. Pillay underscored the need for a sustained effort to overcome logistical and infrastructural obstacles to enable seamless trade across Africa. During the conference, sessions focused on the shortage of adequate infrastructure as a key impediment to pan-African trade. Various stakeholders, including Transnet and Special Economic Zones participants, highlighted the necessity of not only reducing tariffs but also addressing other factors affecting trade volumes. The discussions underscored the complexity of stimulating pan-African trade beyond tariff reductions, calling for a holistic approach to overcome trade barriers. Looking ahead, the emphasis remains on operationalizing transport corridors such as the Libido corridor and the Mozambique-Tanzania-Malawi corridor. Significant investments in port development and infrastructure are critical to supporting trade facilitation initiatives. Additionally, efforts to develop capital and financial markets to fund large projects are essential for sustainable growth in intra-African trade. While some progress has been made, particularly with Chinese investments in East Africa, Pillay emphasized the need for continent-wide investments to address infrastructural challenges comprehensively. Long-term commitments and strategic partnerships will be key to unlocking the full potential of the AfCFTA and driving economic integration across Africa. In conclusion, the AfCFTA conference in Durban shed light on the complexities and opportunities associated with intra-African trade. By addressing infrastructural gaps, trade barriers, and fostering regional cooperation, stakeholders aim to unlock the transformative potential of the Agreement for Small Businesses and drive inclusive economic growth across the continent.