The Sunday Mail
Michael Tome
Business Reporter
Zimbabwe has the potential to become a major player in the US$3,4 trillion market expected to be created by the African Continental Free Trade Area (AfCFTA) given its vast mineral resources and capacity to produce industrial and domestic goods and services, according to the continental trade body’s secretary-general, Mr Wamkele Mene.
He said this during his recent visit to Zimbabwe.
It puts paid to suggestions that the country could become a net importer given the dominance of other African economies, particularly South Africa.
Zimbabwe’s top exports include gold, raw tobacco, ferroalloys, nickel ore and diamonds, which are exported mostly to the United Arab Emirates, South Africa, Mozambique, China and Belgium.
Conversely, the country’s top imports are refined petroleum, delivery trucks, packaged medicaments, nitrogenous fertilisers and tractors.
However, a positive outcome in the ongoing exploration for oil and gas by Invictus Energy in Muzarabani could significantly boost the local economy.
AfCFTA involves co-operation between customs authorities over product standards and regulations, as well as trade facilitation, which will make it easier for goods to move between Africa’s borders.
It is envisaged to create a market of over one billion people for African manufactured products and services.
The combined GDP of the continent presently stands at US$3,4 trillion.
“There are potential export benefits for Zimbabwe in AfCFTA. This country has potential to be competitive in a number of areas, and it is already one of the largest exporters of tobacco,” said Mr Mene while addressing the media.
He said the country could readily benefit through selling oxygen and pharmaceutical services in the wake of the coronavirus pandemic.
“ . . . I was informed that Zimbabwe is now entering the pharmaceuticals sector as well as producing oxygen.
“These are giant steps from an industrial development point of view.
“We have learned how important the pharmaceutical sector is from the recent experience of Covid-19 and how we opted to be more self-reliant.
“In 2019, we imported US$15 billion worth of pharmaceuticals in Africa,” he said.
Africa is currently heavily reliant on drugs, pharmaceutical and medicinal supplies from outside the continent.
But Zimbabwe stands in good stead to supply medical oxygen, especially following the recent commissioning of a new plant at Feruka in Mutare.
“If we had a viable industrial development capacity that produces pharmaceuticals required, we would not have a crisis that we found ourselves in the first six to nine months of last year. We would have been self-reliant.
“So I can imagine a circumstance where Zimbabwe supplies oxygen throughout the continent.
“These are critical value chains that Zimbabwe should think about as we embark on AfCFTA implementation,” he said.
AfCFTA intends to introduce a Pan-African payment system where African countries will not have to convert currencies into United States dollars, which on average results in losses of about US$5 billion per year.
The trade pact encompasses the free movement of people, goods and services, infrastructure, including technology development across the continent.
Consolidating regional trade blocs into one free trade area is also expected to provide great opportunities for trading enterprises, businesses and consumers across Africa, and the chance to support sustainable development in the world’s least developed region.
