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PH:DR: Eswatini launches national strategy to boost investments under the African Continental Free Trade Area
Eswatini, in collaboration with the Economic Commission for Africa (ECA) and the United Nations system, launched the AfCFTA National Implementation Strategy to boost the country’s trade and investment opportunities.
The strategy sets out Eswatini’s plans for trade on the African continent, establishing a principles-based holistic approach to trade policy. It also provides the country with a solid trade and investment framework. The strategy and its action plan aim to enable Eswatini to achieve sustainable growth, diversify export markets, develop the economy and achieve higher standards of living and well-being for its citizens.
Speaking at the launch of the strategy, Eswatini’s Acting Minister of Trade, Industry and Commerce, Thambo Gina, highlighted that the strategy is a tool to promote and increase trade across the country. inside and outside the African continent while attracting investment and stimulating industrialization. Furthermore, it is envisaged that the strategy will promote productivity and enable Eswatini businesses to benefit from national, regional and continental value chains.
“It is imperative that the Government of Eswatini and the private sector work collaboratively to achieve the full implementation of the AfCFTA for the benefit of all EmaSwati,” Mr Gina said, adding that the country will support the private sector , including MSMEs, especially those owned by women and youth.
The AfCFTA National Strategy complements a broader development framework in relation to Eswatini’s trade policy environment under the AfCFTA agreement. It facilitates the identification of regional value chains to maximize value addition benefits and also identifies business opportunities and constraints, including measures and capabilities required to take full advantage of national, regional and global goods markets and services in the context of the AfCFTA.
The strategy also highlights that Eswatini must address supply constraints in order to trade optimally with the rest of the continent. Furthermore, there is a need to improve policy and regulatory measures for Eswatini to take full advantage of the expanded markets under the AfCFTA.
Mr. Mzwanele Mfunwa, Acting Officer of the Sub-Regional Initiatives Section, ECA Sub-Regional Office for Southern Africa (BSR-AA/ECA), in remarks read on behalf of the Director of BSR- AA, Ms. Eunice Kamwendo, noted that Eswatini is on the verge of becoming a well-diversified economy. He said the country is on track to diversify its manufacturing base, which currently accounts for 37% of GDP, the highest in the Southern African region.
Mr Mfunwa observed that Eswatini’s AfCFTA implementation strategy builds on existing efforts and propels the small landlocked country towards increasing its local production base and export orientation.
The AfCFTA Implementation Strategy, structured around 7 strategic objectives, “provides a strategic roadmap for Eswatini to maximize the country’s benefits under the AfCFTA by targeting annual growth in regional exports of at minus 10%,” Mr Mfunwa said.
“The strategy is based on increasing and diversifying local production for AfCFTA markets in priority sectors; developing MSME export readiness programs targeting AfCFTA markets and improving access to development finance to encourage exports, among others,” he added.
For his part, the United Nations Resident Coordinator in Eswatini, Mr. George Wachira, observed that intra-African trade remained around 18%, compared to more than 70% intra-European trade. Thus, the intensification of intra-African trade within the framework of the AfCFTA could be a game-changer with its market of 1.3 billion inhabitants. Studies show that Africa’s manufacturing sector alone could produce up to $1 trillion by 2024, creating an additional 14 million jobs.
“So this strategy is not just a plan; it is a model of prosperity that harnesses Eswatini’s unique strengths and positions it to exploit the vast opportunities that the AfCFTA presents,” Mr. Wachira said, pledging UN support for institutional capacity building. and stakeholders to maximize the benefits of the strategy.
Speaking at the same event, the Private Sector Representative at Business Eswatini, Mr. Mphumelo Makhubu, noted that the AfCFTA is a pathway to inclusive growth and resilience, as the Agreement provides unprecedented market access of 1.3 billion people and a combined GDP of approximately $3.4 trillion.
“This provides an opportunity for Eswatini to diversify our exports beyond familiar territories,” Mr Makhubu said, adding: “Our private sector can now explore new markets, export goods and offer services with access to duty-free, leading to increased revenue and sustainable growth.
