Study unveils AfCFTA barriers
ADDIS ABABA – The Ministry of Trade and Regional Integration (MoTRI) said it is working with stakeholders to promote market access in the African Continental Free Trade Area (AfCFTA).
The ministry made the remark at a workshop organized by Center for International Private Enterprise (CIPE) and KONRAD ADENAUER STIFTUNG (KAS) in collaboration with the Ethiopian Chamber of Commerce and Sectoral Association under the theme “Navigating regulatory barriers to trade and find out the pathways: Maximizing private sector under AfCFTA in Ethiopia.
The event was aiming at navigating and overcoming possible challenges in AfCFTA and enhancing private sector’s and exporters outreach.
Speaking at the workshop yesterday, MoTRI Senior Expert Gebretsadik Tassew said that the government in collaboration with stakeholders has been working to effectively implement the agreement and promoting the private sectors to promote the established market access.
Apart from exchanging experiences on how Ethiopian companies access the preferential market, the workshop helps catalyze stakeholders and the business communities pressing issues while implementing the AfCFTA.
He said, “Ethiopia has finalized preparations to offer goods and service offers to the areas in the near future. The implementation of the AfCFTA is highly believed to boost the inter Africa trade and promote African infant industry to use inputs originated across the continent which in turn grow the economies.”
“Enhancing trade competitiveness requires holistic trade development strategy, thus trade facilitation measures are a pillar to enhance foreign trade efficiency and ensure economic development of the country and trade competitiveness and market integration.”
Reforming and modernizing border management, changing transportation policies and infrastructure investments are critical in this regard. The business community also requires capacity building training, technical and financial support to fully leverage the establishing market access.
For his part, International Trade Policy Expert Jaleto Gemedi stated that procedures and laws set to promote the business regulation and public safety are causing regulatory barriers through complex licensing systems, inconsistent enforcement and procedural inefficiencies impacting SMEs, international trade and operational delays.
According to the conducted research, lengthy custom procedures, inconsistent standards, corruption and bureaucratic red tapes are also the dragging bottlenecks on the AfCFTA implementation, Jaleto remarked.
“Traders are also encountered forex shortages, sampling techniques confirmation and local credit shortages during importation,” he added.
Various cross-border trading, security issues and inefficient infrastructures need to be given due attention while facilitating the agreement, it unveiled.
Similarly, limited financial access, complex bureaucracy and customs procedures, cultural biases and lack of stakeholders support are taken as major barriers that disproportionately affect women and youth business communities.
As to him, over 80% of the communities have no awareness about non-tariff monitoring mechanisms.
In addition to the digitization system for application taking by MoTRI, he stressed Ethiopia’s effective regulatory system should be effective to bring about robust private sectors in the international trading system.
Moreover, the regulatory frameworks remain bureaucratic and lack inclusivity, information dissemination insufficiency, and lower public awareness of agreements including AfCFTA.
Improving stakeholders’ engagement in policy formulation and sector specific initiatives that address challenges faced by women and youth in small businesses should also be undertaken.
Apart from harmonization in line with Pursuing WTO membership and implementation of COMESA, IGAD and AfCFTA, he said that setting preferential treatment and prioritizing women’s opportunities in procurement and industrial sectors engagement remains crucial.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD FRIDAY 4 OCTOBER 2024
