By Primerose Omoto
The African Continental Free Trade Area (ACFTA) has put in place initiatives to create a more integrated Pan African market.
A single market will allow for easier movement of goods, services, and professionals: essential components for successful cross-border trade.
As Sundeep Raichura, Chief Executive Officer at Zamara Group put it, “Africa is a continent which has some of the biggest natural resources across the world. 60% of the world’s workforce and 20% of the world’s mineral resources.
Almost 60% of the world’s uncultivated, arable land is in Africa. Why is Africa not a powerhouse in the world?”
Mburu-Ndoria, the Director of Trade in Services at ACFTA, highlighted the significant strides being made to facilitate cross-border trade across Africa.
The summit was attended by numerous partners and stakeholders focusing on the importance of liberalizing trade to create a single African market.
Mburu-Ndoria emphasized on the critical role of the Pan-African Payment and Settlement System (PAPSS).
PAPSS is an innovative system that allows for instant, real-time payments in local currencies across the continent.
This aims to significantly reduce transaction costs and eliminate the need for foreign exchange.
“In collaboration with the African Export-Import Bank, the PAPSS is a game-changer for intra-African trade, making transactions faster, cheaper, and more secure,” she said.
She also discussed the importance of the yellow card system for vehicle insurance which facilitates cross-border movement.
The yellow card system is currently being enhanced to extend beyond the COMESA region, further supporting trade across Africa.
The Digital Yellow Card System, also known as the COMESA YC is recognized and currently being implemented in the following countries: Burundi, Djibouti, Democratic Republic of Congo (DRC), Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Sudan, Tanzania, Uganda, Zambia, and Zimbabwe.
Mburu-Ndoria also highlighted other collaborative efforts with Afrasing Bank to support trade financing and risk mitigation.
“Our goal is to make it easier for the private sector to trade across borders, ensuring that businesses and professionals can move seamlessly from one country to another,” she explained.
“We have been laying the groundwork for Africa to move towards a single African market. We believe that this will be adopted, across all the industries in Kenya and the rest of Africa,” said Raymond Muthama, Chief People & Culture Officer at Zamara Group.
The summit underscored the collective drive towards achieving these goals, with various partners and stakeholders committed to realizing the vision of a unified African market.
