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Home African Continental Free Trade Area

African Nations Pursue Borderless Trade Zone at AFRAC Summit

by SAT Reporter
September 27, 2023
in African Continental Free Trade Area
0
African Nations Pursue Borderless Trade Zone at AFRAC Summit

The 14th summit of the African Accreditation Cooperation (AFRAC) is currently underway in Nairobi, Kenya, and the spotlight is on discussions aimed at establishing a borderless trade zone across Africa. This landmark event, hosted by the Kenya Accreditation Service (KENAS) as part of AFRAC’s 13th anniversary celebration, has brought together representatives from across the continent to explore innovative solutions for expanding Africa’s industrial sector and boosting its global trade presence.

Kenya’s Ministry of Investment, Trade, and Industry (MITI) is at the forefront of these discussions, aiming to address the issue of Africa’s industry, which currently accounts for only 3% of the global total. Juma Mukhwana, the Senior Secretary for Industry at MITI, emphasized the need for lasting solutions: “We need more cross-border businesses so that if you do a factory in one country, you are able to access a larger market within Africa for an economic sense of growth.”

To achieve these ambitious goals, Kenya’s MITI has increased investment from Sh73.9 billion ($500 million) to Sh220 billion (USD 1.5 billion). They are also targeting a significant increase in exports, aiming to raise them from 10% of GDP to an impressive 30% by December 2025. Additionally, they plan to elevate the manufacturing sector’s contribution to GDP from the current 7% to 15% by 2027 and further to 20% by 2030.

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The AFRAC summit’s agenda is filled with debates and workshops designed to tackle specific challenges. Member organizations are coming together to assess progress and chart a course for the future. Ng’eny Biwott, Chair of the Board of Directors of KENAS, emphasized the importance of accreditation in achieving Kenya’s key agenda of increasing exports: “The mutual accreditation arrangements offer governments a reliable and technically sound foundation on which to build out and improve bilateral and multilateral government-to-government relations and international multilateral commercial agreements.”

As the AFRAC summit unfolds, African nations are exploring innovative ways to unite and create a borderless continent for trade, aiming to increase their global economic footprint and bolster their industries. The discussions held here may pave the way for a new era of economic growth and collaboration across Africa, with Kenya taking a lead role in shaping the continent’s future trade landscape.

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