75% of businesses in Francophone Africa yet to hear about AfCFTA – Survey
A survey conducted by the International Trade Centre (ITC) and the Secretariat of the African Continental Free Trade Area (AfCFTA), has revealed that over 75% businesses in African Francophone countries do not know about the continent-wide trade agreement.
The revelation from the survey is shocking given the fact that official trading under the AfCFTA begun almost two years ago – on January 1, 2021.
The survey further reveals that, 42% and 34% of micro-sized and small-sized firms on the continent struggle delivering products and services on time, compared to the 18% of large firms that are able to do so.
Furthermore, only 28% and 37% of micro-sized and small-sized firms report high availability of information on standards and certificates, with this information being less available to exporting firms within Africa.
The survey conducted by the ITC and AfCFTA Secretariat, is a preliminary report mapping the initial steps towards the full assessment of Africa’s private sector.
The survey measures competitiveness, strengths and weaknesses of a representative sample of 4,683 enterprises in 11 African, countries conducted since 2015.
According to the ITC and AfCFTA Secretariat, African businesses need more support to taje advantage of the AfCFTA.
The ITC and AfCFTA Secretariat assert African businesses need support to improve their capacity to compete, improve their capacity to connect and improve their capacity to change.
Meanwhile, Africa’s transport and logistics import market under the AfCFTA is worth $65 billion and its automotive market $42 billion. Africa’s pharmaceutical sector has realised just 35% of its export potential and agro-processing sectors, like food preparations for infants, currently sources just 10% of their inputs from intra-African suppliers.
Addressing trade barriers related to rules of origin in the manufacturing sector and conformity assessment in processed food will help increase intra-African trade.
