A member of the East African Legislative Assembly (EALA) from Rwanda is leading efforts to provide increased support to women, youth, and persons with disabilities in their businesses, enabling them to capitalize on the opportunities offered by the African Continental Free Trade Area (AfCFTA).
During the EALA plenary session held in Tanzania last week, MP Francoise Uwumukiza introduced a motion calling for a resolution that urges the EAC Council of Ministers and Partner States to enhance the participation of women, youth, and persons with disabilities in business.
The motion also seeks to equip them with the necessary skills to take advantage of the AfCFTA opportunities.
The motion, seconded by MP Gai Deng from South Sudan, was unanimously approved by EALA.
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In an interview with The New Times, Uwumukiza emphasized the underrepresentation of women in factories and manufacturing, highlighting their significant engagement in small businesses, including retail and cross-border trade.
"This motion aims to ensure that EAC leaders and trade entities explore ways to support the growth of small and medium enterprises (SMEs) to enhance their competitiveness in the international market," she explained. Uwumukiza stressed the need for women to expand their businesses through strategies such as value addition at the factory level.
The approved motion includes a resolution urging the Council of Ministers and Partner States to develop and implement programs and activities targeting women, youth, and persons with disabilities. These initiatives aim to enhance their capacity to start and sustain businesses, facilitating their effective participation in the business sector.
Justifying the motion, MP Uwumukiza highlighted that the primary objective of the AfCFTA is inclusive socio-economic development, with a focus on promoting opportunities for women and youth, as well as ensuring gender equality.
She further pointed out that the African Union Protocol on Trade in Services commits member states to improve the export capacity of formal and informal service suppliers, particularly micro, small, and medium-sized enterprises (SMEs), as well as women and youth service providers.
Recognizing the significant role of women in subsistence agriculture and as the majority of Africa&039;s agricultural labor force, Uwumukiza highlighted the importance of addressing the underlying factors that have trapped women, youth, and persons with disabilities in poverty cycles in the EAC region for decades. These factors include unequal access to education, production resources, trade facilities, labor-saving technologies, underpaid or unpaid labor, harmful cultural practices, and limited legal protection against gender inequality.
Timely access to trade information and e-commerce are critical aspects addressed by the motion. Uwumukiza expressed concerns about the challenges faced by women due to lower literacy levels, making compliance with border management procedures and paperwork requirements more difficult.
Additionally, she highlighted instances where small women traders are exploited by unscrupulous agents due to their lack of access to trade-related information, including customs regulations. Uwumukiza stressed that many women traders are unaware of tax exemption rules for goods below a certain value and are unjustly taxed at customs due to the lack of information.
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She further revealed cases where women traders are asked to provide certificates of origin, even when it is not a legal requirement for certain products such as agricultural commodities. Uwumukiza pointed out that such situations sometimes lead to sexual harassment due to abuse of customs legislation.
In light of the impending online-based market facilitated by AfCFTA, Uwumukiza emphasized the need to provide women with the necessary digital tools to participate effectively.
"While trade on this broader market will mainly take place online, most women in small businesses only own feature phones and lack smartphones or computers required for e-commerce," she observed.
According to the African Development Bank (AfDB), women entrepreneurs encounter numerous challenges in accessing finance, resulting in an estimated $42 billion financing gap for African women across various business value chains, including $15.6 billion in agriculture alone.
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These challenges include the perception of lending to women as riskier, leading to prohibitive interest rates. Additionally, women often lack traditional collateral and guarantees, such as land and buildings, which further hinders their access to financial resources.