Private Sector Foundation Uganda (PSFU), in partnership with the United Nations Development Programme (UNDP), has commenced a mass awareness campaign to promote the African Continental Free Trade Area (AfCFTA) and strengthen the capacities of export ready enterprises in Uganda.
PSFU Executive Director Stephen Asiimwe will appear on several radio stations starting with Kfm (D’Mighty Breakfast Show – 9:10am) and Simba Fm (Olutindo Show- 7-9pm) on Tuesday where he is expected to lead efforts to create awareness on the provisions of AfCFTA and the market opportunities it offers.
Asiimwe will also speak on how PSFU will provide technical support to equip 250 export-ready enterprises in Uganda with knowledge, skills and tools to enhance their ability to access regional and continental markets.
The move is geared towards improving the public’s knowledge about AfCTA and building a growing base of Ugandans to take advantage of AfCTA.
The AfCFTA was created to form a single market for goods and services on the African continent, which allows for free movement of persons and investments.
Africa accounts for just 2.9% of global trade and only about 17% of African exports are intra-continental, compared with 58% for Asia and 65% for Europe.
The Free Trade Area provides an opportunity for countries in Africa to competitively integrate into the global economy, reduce poverty, and promote inclusion. The potential impacts at the household level are also significant.
However, limited knowledge and understanding of the Agreement is an enormous obstacle to the successful uptake of trade opportunities within the newly created One African Market.
The AfCFTA is projected to raise Africa’s income by 7 percent, lift 30 million people out of extreme poverty, and lift 68 million people out of moderate poverty by 2035. It is also projected to boost intra-African trade by 52.3 percent when import duties and non-tariff barriers are eliminated.
The Agreement has been touted as a game changer for economies like Uganda, as it promises larger market opportunities, triggering more trade and investment and allowing greater value addition, export diversification and productivity growth – leading to more and better jobs with greater social inclusion.
The AfCFTA also promises higher intra-regional trade in agri-food products, including from surplus to deficit countries, thereby stabilizing food prices and improving food security in Africa.
It offers an opportunity to promote socioeconomic transformation and improve competitiveness through regional value chains in manufacturing while improving competitiveness, triggering greater trade and investment in green enterprises, and promoting socio economic transformation.
State Minister of Trade in charge of Industries, Hon David Bahati, recently described the AfCFTA as one of the drivers of Africa’s growth and industrialisation agenda.
“With a population of 1.3 billion people and a combined GDP of US$3.4 trillion, the AfCFTA offers the continent, and Uganda, a solid base for speedy industrialization,” he said.
The Minister noted that implementation of the AfCFTA is timely especially in light of the economic challenges exacerbated by the COVID-19 pandemic, which has adversely impacted global economic growth projections.
“The African Continental Free Trade Area provides us an opportunity to further consolidate our resilience and should catalyze our recovery from the impact of COVID-19,” he said.
Africa trade has for long been hampered by high interest rates, unfavorable tax policies, quality standards, poor dispute resolution mechanisms, insecurity, low digitalization levels and inability of key institutions to identify opportunities and linking them to entrepreneurs and limited support to boost quality productions.
PSFU recently facilitated a Training of Trainers session to equip 30 selected PSFU and Association staff with the knowledge on the provisions of the AfCFTA, the market opportunities the trade agreement offers and the rights and responsibilities that come with it.