Tapiwanashe Mangwiro
Senior Business Reporter
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said industrialisation and Special Economic Zones (SEZs) on the continent will be critical to fully operationalise the African Continental Free Trade Area (AfCFTA).
Minister Ncube said this at the 57th Session of the Conference of African Ministers of Finance, Planning, and Economic Development in Addis Ababa last week.
Zimbabwe signed the AfCFTA agreement, aiming to create a single continental market, and ratified it on May 24, 2019, becoming one of the earliest nations to embrace the deal.
The departing chairman of the Outgoing Bureau opened the session by underscoring Africa’s pivotal moment, highlighting the AfCFTA as a cornerstone for resilience against external market dependencies and a catalyst for sustainable industrial growth.
“The AfCFTA offers a critical pathway for Africa to build resilience, reduce dependence on external markets, and drive sustainable industrialisation,” Minister Ncube stated, echoing the sentiments of many African leaders gathered.
With a market of 1,4 billion people and a combined gross domestic product (GDP) exceeding US$3,4 trillion, the AfCFTA could increase intra-African trade by 45 percent by 2045, provided structural barriers and infrastructure deficits are addressed.
Drawing from discussions among the Committee of Experts, the minister outlined strategic priorities essential for advancing the AfCFTA’s implementation.
“Enhancing regional value chains and trade infrastructure is critical,” he asserted, emphasising the need to strengthen sectors like agriculture, manufacturing, and services to maximise value addition and reduce reliance on raw commodity exports.
Moreover, addressing trade barriers and improving access to finance emerged as imperatives.
The outgoing chair proposed harmonising trade regulations, eliminating non-tariff barriers, and scaling up innovative financing mechanisms such as blended finance and thematic bonds.
These steps, he argued, would enhance capital access and broaden market opportunities for African businesses.
In the era of digital transformation, Minister Ncube highlighted the importance of leveraging digital innovation to expand trade.
Integrating e-commerce, digital trade platforms, and fintech solutions into the AfCFTA framework, he suggested, would drive efficiency, lower transaction costs, and facilitate broader market access across the continent.
Macro-economic stability and governance were identified as foundational to creating an enabling environment for trade and investment.
“Fiscal discipline, debt management, and domestic resource mobilisation are crucial,” he emphasised, urging alignment of national policies with regional integration commitments to bolster economic resilience and investor confidence.
In November 2024, the AfCFTA secretariat approved Zimbabwe’s provisional schedules of tariff concession, paving the way for the country to start trading under AfCFTA framework.
This is in view of the fact that Zimbabwe is now close to commencing preferential trading under the AfCFTA, following the technical verification of the country’s provisional schedules of tariff concession by the AfCFTA Secretariat.
This is one of the key prerequisites for a state party to commence preferential trading under the AfCFTA.
The Protocol on Trade in Goods to the AfCFTA Agreement mandates AfCFTA State parties to adopt tariff concession schedules showing the tariff lines that will be liberalised in intra-Africa trade with the progression in the reduction of customs duties from ordinary rates to zero percent, over a period ranging from five years to 15.
The AfCFTA, which was established in 2018, creates a single continental market for goods and services in Africa. It further aims to reduce trading problems such as different regulations from one African country to another.
Currently, trends in the automotive sector show high demand for electric vehicles.
With abundant mineral resources that are vital raw materials for the manufacture of electric vehicles, Zimbabwe is primed to play a significant role in the automotive value chain.
For instance, Zimbabwe can be a hub for the manufacture of lithium and steel-related components, given the abundance of these minerals in the country.
A study on the African automotive value chain that was done by the African Export and Import Bank (Afreximbank), AfCFTA Secretariat and African Association of Automotive Manufacturers (AAAM), identified several Zimbabwean companies as significant potential players which can contribute towards the African automotive value chain.
These are Chloride Zimbabwe, United Springs, Supreme Gaskets and Kabot Brothers.
With South Africa’s presidency of the G20, Minister Ncube said it positioned Africa at a pivotal juncture to advocate for global financial reform. He stressed the need for inclusive frameworks that empower African nations in the global economy, supporting sustainable development goals and equitable access to finance.
Turning to environmental sustainability, the outgoing chair underscored the importance of green industrialisation and climate finance in aligning trade growth with sustainable development goals.
Integrating climate-smart trade policies into the AfCFTA, he argued, would unlock opportunities in renewable energy and green supply chains, positioning Africa as a leader in sustainable industrialisation.
Minister Ncube concluded by urging decisive action to deepen regional integration through coordinated policies and robust financial commitments.
“We must transition from commitments to action,” he affirmed, calling for concrete policy shifts that promote trade, industrialisation, and economic diversification across Africa. As the conference concluded, Minister Ncube commended the outgoing Bureau and welcomed the incoming leadership, expressing optimism for Africa’s economic transformation through collaborative efforts and strategic initiatives.
In his final remarks, the outgoing chair encapsulated the collective sentiment, “This Ministerial Conference provides us with an opportunity to translate expert recommendations into tangible policy shifts that drive Africa’s economic transformation. I look forward to constructive deliberations and concrete commitments.”
