Businesses optimistic about trade association

By BUUMBA CHIMBULU
THE African Continental Free Trade Area (AfCFTA) has driven optimism among Africa’s businesses despite the Covid-19 uncertainty.
African Chief Executives Officers (CEOs) expressed optimism about their business and economic growth over the next 12 to 18 months.
A new survey of African CEOs from 46 countries conducted by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC), the Pan-African Private Sector Trade and Investment Committee shoes that CEOs were confident that their businesses will grow in the next year.
A majority are also optimistic about the economic outlook of their industry.
In addition, 87 percent of respondents believe that there will be an increase in intra-African trade as a result of the African Continental Free Trade Agreement.
“The CEOs believe that the global recovery led by greater demand will drive Africa’s economic recovery.
“Their positivity stems more from their faith in international and regional trade strategies and agreements such as enhancement of trading opportunities through AfCFTA, rather than as a result of national economic recovery strategies like ease of lockdown restrictions or better national business climate,” the survey.
Commenting on the survey, Pat Utomi, Chair of PAFTRAC, said one major advantage of AfCFTA was that it could enable aggregation across borders so that African countries could pool products in volumes and quality that make them more competitive in global markets.
“The positive sentiment expressed by survey respondents demonstrates the potential of the AfCFTA and the eagerness of Africa’s private sector to take advantage of the market access opportunities it offers.
“However, access to trade information, trade enabling infrastructure, and trade finance emerged as key constraints that need to be addressed to ensure that intra-African trade opportunities are exploited for the benefit of African SMEs,” Professor Utomi said.
Though the appetite for regional trade is strong, a majority of respondents placed access to trade finance and access to investment capital as the two biggest constraints when trading regionally.