eBusiness Weekly
Tawanda Musarurwa
Why is Africa still importing foodstuffs when it should actually be the breadbasket of the world?
The answer to that question boils down to one issue: constrained capacity.
But the coming into effect of the African Continental Free Trade Area (AfCTA) protocols should be a boon for agriculturalists, particularly the smallholder farmers, from Zimbabwe and more broadly, the region.
The free trade area, in particular is largely expected to reduce African countries’ dependency on importing foodstuffs outside the bloc.
In this way too, it can help capacitate smallholder farmers to enhance their export capacities (particularly into the region). This is especially critical insofar as FAO says “family farmers” tend to produce over 80 percent of the world’s food in value terms.
Zimbabwe last year ratified AfCTA, which became effective mid-last year.
Official data from the Food and Agriculture Organisation (FAO) show that although agricultural intra-African exports rose from US$2 billion in 2000 to US$13,7 billion in 2013, these exports remain relatively modest and often informal, despite the continent’s food imports continuing to increase.
The continent has faced a food and agricultural import bill averaging US$71,9 billion between 2010 and 2016, growing at a yearly average of 3,6 percent reaching US$72,7 billion in 2017.
However, the signing and ratification of the AfCTA agreement can be an opportunity to accelerate growth and sustainable development by increasing investment and trade – including trade in agricultural products.
Said FAO assistant director-general Abebe Haile-Gabriel:
“There are various opportunities ahead of us to unlock the enormous potential to transform Africa’s agriculture and food systems. The African population is growing to about 1,7 billion by 2030, in particular, young Africans with more than 750 million under the age of 35.
Abebe Haile-Gabriel
“Growing African food markets, estimated to reach US$1 trillion in value by 2030 as a result of the recently signed AfCTA, which will feature a combined gross domestic product of more than US$3,4 trillion.”
But before agricultural producers can become key players on the regional trade landscape, there is need for the respective Governments to systematise the formalisation of agricultural sector through the implementation of conventions and policies promoting and protecting local food systems.
The AfCFTA, a flagship project of the African Union (AU) Agenda 2063, came into force this year after ratification by 24 African states, becoming the world’s largest free trade pact since the establishment of the World Trade Organisation.
The main objective of the AfCFTA is to create a single continental market for goods and services and enabling the free movement of persons and investments.
On its part, Zimbabwe ratified the AfCFTA agreement and has started stakeholder consultations in order to craft a national strategy which will guide its participation in the trade bloc.
The national implementation strategies being developed by African countries will focus on each country’s priority interests within the continental and global development agenda.
Zimbabwe’s Minister of Lands, Agriculture and Rural Resettlement Dr Perrance Shiri says broader strategies are required to deal with issues around agriculture and food security, both in Zimbabwe and across the continent.
“The elimination of hunger for more than 750 million people in Africa and responding to different structural challenges requires strong partnerships, collaborations and commitments between various stakeholders,” said Dr Shiri.
Minister Shiri
“The time is now for Africa to develop home grown policy solutions that are effective in addressing our unique and peculiar developmental challenges.
“Thus, this space is fundamental in providing a pool of policy options for consideration at regional and national level as you are aware that we have the Agenda 2063 which we are rallying behind as Africa in our quest to have the ‘Africa We Want Vision’. “
The continent’s free trade pact created a single market for goods and services, allows free movement of people and will eventually be upgraded to a Customs Union with a common tariff for the continental grouping.
It is expected to create an African market of over 1,2 billion people with a Gross Domestic Product of US$2,5 trillion.
The United Nations Economic Commission for Africa estimates that the AfCFTA has potential to boost intra-Africa trade by 53 percent by eliminating import duties and non-tariff barriers.
