Africa-Press – Tanzania. INDUSTRY and Trade Minister, Prof Kitila Mkumbo has encouraged the private sector not to fear the African Continental Free Trade Area (AfCFTA) since they have enough capacity to compete.
AfCFTA is a free trade area founded in 2018, with trade commencing on 1 January 2021.
It was created by the African Continental Free Trade Agreement by 54 of the 55 African Union nations.
Prof Mkumbo told the private sector that it is high time they think of how they would effectively compete since the country is going to implement AfCFTA after it had signed some of its agreements.
“Don’t be afraid of AfCFTA since you are already doing well in the East African market and that of the Southern African Development Community (SADC),” Prof Mkumbo said when he graced a forum organized by the CEO Roundtable Tanzania in Dar es Salaam on Tuesday evening.
The event brought together eminent figures to explore the acceleration of Tanzania’s economy through the ratification of AfCFTA.
He said currently the government has put in place a strategy to ensure that Tanzanians become aware of the agreements signed in the AFCFTA and their impacts.
“In this endeavour, we want you (private sector) to continue supporting the government in making people aware,” he appealed.
He further noted that the government was also striving to put in place the right policy for Small and Medium Enterprises (SMEs) for them to be competitive ahead of implementation of the AfCFTA.
In a move to expand local industry and trade, Tanzania ratified the AfCFTA agreement.
With this removal of trade barriers and facilitation of free movement of labour, the country can finally make good use of regional blocs and enjoy access to the robust market of Africa while looking forward to face the current trade and economic development challenges in Tanzania and the road towards trade volume increase.
With the agreement is expected to cover a market of 1.2 billion people and a combined GDP of 3.4 trillion US dollars, the national economy stands to gain from strengthening the value chain for agriculture, quality infrastructure, energy, SME development, innovation product diversification, capacity building, industrial policy, and special economic zone with robust public-private sector partnerships.
During discussions, Mr Yogesh Manek, chairman of the CEO MAC Group Ltd, said the private sector is set to benefit from a huge market and numerous opportunities in AfCFTA.
However, he said it was important for the country to look at legislative issues and address challenges facing business operations so that the private sector could be on the same page during implementation of the AfCFTA.
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