Unlocking trade opportunities under the AfCFTA

Kenya's effort to unlock trade opportunities under the African Continental Free Trade Area (AfCFTA) is gaining momentum as the country strives to expand its Africa export markets and boost GDP growth. In a recent interview with CNBC Africa, Juma Mukhwana, the Principal Secretary of Industry in Kenya, shed light on the challenges and opportunities that come with implementing AfCFTA. The AfCFTA initiative aims to create a unified market for goods and services across the African continent, providing significant prospects for Kenya to enhance its trade relations with other African nations. Despite Africa's vast population of 1.3 billion people, the continent's share of manufacturing stands at only 2.8%, highlighting the need for greater intra-Africa trade collaboration. Mukhwana emphasized that Kenya is fully aware of the importance of increasing trade within Africa, considering that the continent's intra-trade currently lags at 15% as compared to other regions like Europe and Asia, which boast much higher levels of intra-regional trade. Recognizing the imperative to address this disparity, Kenya has been actively involved in promoting intra-Africa trade by spearheading initiatives to rally more countries to sign up for the AfCFTA. Thanks to concerted efforts by Kenyan leaders and officials, the number of countries signing up for AfCFTA has increased from 37 to nearly 55. Mukhwana underscored Kenya's proactive stance in supporting regional trade agreements, citing the country's membership in the East African Community (EAC) and its collaborations with other African trade blocs. In addition to championing AfCFTA, Kenya has been exporting various products under the agreement, signaling the country's commitment to leveraging intra-Africa trade for economic growth. The interview delved into the complexities that come with harmonizing tariffs and trade regulations across different regions, as Kenya navigates the challenges and opportunities presented by multiple trade agreements and trading blocs. Mukhwana acknowledged that participating in various trade blocks entails both benefits and drawbacks, as countries may experience increased competition in some sectors while gaining market access in others. He stressed the importance of strategic monitoring and policy adjustments to address sector-specific challenges and enhance competitiveness. Furthermore, Mukhwana highlighted the critical role of free movement of people in facilitating trade, pointing out that Kenya has embraced visa-free entry for all Africans to promote seamless business interactions. He emphasized that the free movement of people is essential for fostering economic growth and trade partnerships across the continent. In addressing non-tariff barriers, Mukhwana outlined Kenya's commitment to monitoring and eliminating obstacles that impede intra-Africa trade, underscoring the country's dedication to promoting a conducive trading environment. Kenya's proactive engagement in fostering intra-Africa trade growth under AfCFTA reflects the country's dedication to driving economic development and maximizing the continent's vast trade potential. As Kenya continues to play a pivotal role in regional trade alliances and initiatives, the prospects for a more integrated and prosperous African market are becoming increasingly promising.