The value of Rwanda’s exports to the African continent is expected to triple in 10 years, up from Rwf1.6 billion, thanks in part to the African Continental Free Trade Area (AfCFTA). One of the world’s largest free trade zones, AfCTA started the trading phase in January, effectively setting the stage for the continent to benefit from its $4 trillion worth of market. AfCFTA is expected to promote industrialisation and competitiveness, as well as create millions of jobs across the continent. It is also hoped that it will unleash regional value chains that could facilitate Africa’s meaningful integration into the global economy. Signed in Kigali in March 2018, the agreement establishing the AfCFTA is probably the most important milestone by any generation of African leaders since the 1960s when most countries on the continent got their independence. For decades, African economies remained fragmented with small, largely unsustainable and undeveloped markets, a situation that largely benefited former colonisers and other industrialised countries. Yet, AfCFTA might largely remain on paper if the private sector does not fully embrace it and start taking advantage of it. This is in part due to structural barriers to cross-border trade. However, African political and business leaders have so far demonstrated readiness to address these challenges and create the necessary business friendly environments with a view to facilitate traders and investors seeking to exploit AfCFTA. One of the latest initiatives in that regard is the launch this week in East Africa of MANSA, a digital platform that provides a single primary source of data that allows for requisite due diligence involving financial institutions, businesses, among others. Besides creating conditions for intra-African exporters to access financial facilities, the initiative is expected to help address concerns around financial crime, and boost transparency and ethical trade. This has been described as a game-changer by players in the intra-African export market as far as trading under the AfCFTA framework is concerned. Indeed, it is critical that Rwandan and African businesses, in general, seize this opportunity, as well as other similar initiatives, to venture beyond their national borders more confidently and decisively, thereby helping shape a new Africa that the architects of AfCFTA envisioned.
