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Africa to Expand Intra-African Trade Via FDIs

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6th March 2020
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Africa to Expand Intra-African Trade Via FDIs
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African states have been urged to be open to foreign direct investment (FDI) from African countries as well as adopt regional concepts of local content to boost intra African trade. This will be in readiness for the roll-out of the African Continental Free Trade Agreement (AcFTA) in three months.

Cabinet Secretary Trade and Industrialization Betty Maina stated that the country needs to invest in agro-processing, add value to textile and apparel in a bid to leverage on the provided opportunities.

With the elimination of tariffs and non-tariffs required by the agreement, the export portfolio is set to expand, boosting the intra-African trade, which will stir a rapid growth in the region and Africa.

AcFTA operationalization is expected to create a 1.3 billion market worth 2.5 trillion dollars by 2021 through leveraging other digital commerce, value addition along the manufacturing value chain.

According to the Cabinet Secretary Trade and Industrialization Betty Maina, member states should increase their investments in value addition so to increase intra-regional trade.

The latest data by TradeMark East Africa has indicated only 19% of the export goods can be accounted for.

The operationalization of the African Continental Free Trade Agreement is deemed a game-changer for how Africa trades within itself for prosperity.

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