Ethiopia is among the 44 African countries that ratified the Africa’s continental free trade area. The countries acceded into the trade area assuming that they can benefit more economic advantages in it. However, scholars say that, some of the development activities that the country carried out recently can give her competitive advantages in the trade area provided it makes improvements in its telecommunication infrastructure and finance sector.
Dr.Wondaferahu Mulugeta, Lecturer at Wollega University told The Ethiopian Herald that AfCFTA can cut the long distances which help to trade sharing among the continent. The progress of railway transport, agro processing, and the expansion of small and medium enterprises will be the main competitive advantage in Ethiopia.
However, the country has some challenges in regards of telecommunication and banking system. It does not mean that Ethiopia is in a poor condition fully challenged by the cause, it is rather the government is efforts to reduce the challenges in order to realize the country become comfortable area and obtain competitive advantage.
Dr. Atilaw Alemu, Lecture at Addis Ababa University also agrees that Ethiopia has made a lot of progress in the recent years. But it has to improve its connectivity and banking system in order to facilitate the trade arena and obtain competitive advantage.
He however, mentioned the current actions of the government to enhance ease of doing business for the private sector and improve the bureaucratic system. Currently, the completion of many industrial parks has significant role for Ethiopia to be in a competitive position with the member countries. Ethiopian can use the industrial parks especially the agro processing complexes to generate a large amount of revenue from resources that are being wasted.
According to Wondaferahu, among the various resources, which exist in the country in abundance but not used to generate income is fruits. This will play indispensable role in the trade that Ethiopia is providing quality and sufficient fruits to non-fruits producing member countries.
As to him, fruits have special market share due to its simply appreciable after developed. Due to this reason, the country should be taken strong measures that which sources do you have and which are not.
Particularly, organic items are highly demanded in the international market which Ethiopia has in abundance. On the other hand, Ethiopia ranks 4th in the production of honey and 10th in animal husbandry globally. This creates a chance to maximize its economic benefit by increasing its export volume.
Due to the market has sharing the resources, knowledge, and experience then Ethiopia needs to how the system is used effectively to take comparative advantage and ensure mutual development. He advised that, Ethiopia should take strong measures on some bureaucratic system which impedes to realize free trade in the continent and enable to be competitive.
The Ethiopian Herald, June 15/2019
BY MESERET BEHAILU
