La Zlecaf: Unlocking the African Market | Trade & Investment

The fourth edition of the intra-African fair (IATF) concretely illustrates the ambition of the ZLECAf to build a single continental market. Cynthia Gnassingbé-Essonam, principal advisor for private sector engagement to the secretary general of the African continental free trade area (ZLECAF), underlines the key role of Tunisia, pioneer in the ratification and implementation of this historic agreement. This opens up new opportunities for African companies, young entrepreneurs and women, in a context of accelerated integration and digital transformation. Interview:

What strategic axes should be prioritized to improve African economic integration via this forum?

Cynthia gnassingbé-essonam: First, the intra-African fair, which is in its fourth edition, is the real Zlecaf market. For us, the fair concretely makes it possible to materialize the ZLECAF, because it brings together several companies which come to establish trade relations and do networking. It also offers participants the opportunity to test the products. Because a frequent problem is how to make sure that we have a trustworthy economic operator.

Thus, the organization of these intra-African fairs facilitates the direct meeting between these economic operators, promoting the conclusion of trade relations and, in fact, the increase in intra-African trade, since they allow companies to go beyond national borders. This is the first point. We must strengthen these initiative spaces and ensure that the environment created allows companies to participate, in particular young people and women entrepreneurs, often limited by their means.

A complete mechanism must be set up to ensure that these fairs are not only reserved for large companies, but that they also welcome small and medium -sized businesses, so that they can participate fully and benefit from the advantages they offer. The second point concerns the continental free trade area itself, which is today the main African integration program.

It is an emblematic project of the African Union. Although we have been talking about it for a long time, the implementation of the ZLECAF is now effective, which is of importance all the greater as we are evolving in an unfavorable context for African countries, with the closure of borders and the adoption of protectionist policies.

However, we have a large domestic market that must be built and develop: a market of 1.4 billion inhabitants, which is not nothing. It is a question of pushing our savings to diversify, to transform the raw materials locally in order to export finished and intermediate products on the continent.

The ZLECAF precisely targets this objective. It is essential to continue to educate companies by indicating that it is no longer necessary to seek to export outside the continent. Admittedly, we face logistical, transport and connectivity challenges, but we are working on their resolution. The private sector must now see the continent as a priority market. Together, we will have to work to remove the barriers, in particular the non -tariff barriers that we meet daily in the business and investment activities.

It is important to emphasize that the ZLECAF already has its legal framework, adopted and ratified by 49 countries, which is considerable progress.
It is now a question of implementing concrete mechanisms, in collaboration with the private sector, to define what we really do in order to implement this project or this agreement and that it really benefits the private sector, but also to women, young entrepreneurs, innovators and start-ups.

The second point is therefore to confirm that Zlecaf is a reality, not a utopia. That said, there is still efforts to be made, in particular to eliminate non -pricing barriers.

The third point concerns public-private dialogue. After all, the Zlecaf also begins with the States. We must continue to raise awareness and strengthen the capacities of state actors so that they know perfectly the provisions of the agreement and that they create a climate favorable to the emergence of companies, so that they are competitive first on their national market, then capable of exporting to other countries.
We therefore encourage companies to think of continent: when you create a business in Egypt, Tunisia or Algeria, immediately think of the Ugandan, South African markets, etc., because this is what ZLECAF offers economic operators.
Industrialization and strengthening industrial capacities must obviously support this dynamic, with the development of value chains in priority sectors such as agriculture, agrobusiness and pharmacy. For example, during my visits to Algeria, I noticed the existence of pharmaceutical industries with very competitive costs for certain generic products. I wonder why this type of product does not exist in Togo, for example. Even if these products were exported to this state or to others, their cost would remain lower than what I am currently paying. This is also the case in Tunisia for pharmaceutical products.

What about Tunisia?

Tunisia actually offers good access to these products. This is also the case for the automotive sector, where the continent is a significant delay. Today, the annual production of vehicles in Africa is approximately one million, mainly distributed between countries like Morocco, South Africa, etc. For a continent of 1.4 billion inhabitants, it is very low compared to India, which produces 5 million units with an equivalent population. There is therefore a deficit of 4 million to fill. But it is not only a question of assembly, since the manufacture of components generates a significant value creation and many jobs.

Regarding digital transformation, where are we really today? A platform was mentioned above. What tracks can we consider to accelerate and energize this digital transformation on the continent?

In the Zlecaf agreement, a protocol dedicated to digital trade exists. This protocol harmonizes standards and standards for the development of the digital economy and associated infrastructure. It also concerns the transfer of data, which justifies the importance of creating an African digital product, capable of exporting at a lower cost, or even for free.
This protocol also addresses new technologies, their development, their deployment on the continent, as well as the implementation of interoperable systems to facilitate cross -border payments.

Digital transformation is therefore at the heart of the Zlecaf. An effective implementation of this protocol will make it possible to invest more in public infrastructure, in fintechs connected to these infrastructure, in particular for cross -border payments. The development of e-commerce is a priority to promote, accompanied by a sustained awareness effort.
It is interesting to note that three countries are considered the leaders of the protocol on digital trade: Kenya, South Africa and Nigeria. These countries, through their trade ministers and heads of state, work to define a continental action plan for the implementation of this protocol.

A word from the end?

This edition of the intra-African fair is a success. We very much want to encourage Algerian, Tunisian companies, etc., to deploy more. We must strengthen the transfer of technologies and the South-South collaboration.

It is also essential to fully use the ZLECAF, considering it as an operational tool. Do not hesitate to request the secretariat of the Zlecaf, do you appropriate this agreement, because it is the only opportunity that we have today, as a feasts, to develop and create a single African market. If we are raising this opportunity, I don’t know what our children and grandchildren will tell us in a few years.
You have to work, and it is everyone’s responsibility: decision -makers, business leaders, students, civil society, media. Today we must be ambassadors of the Zlecaf, because African integration is truly the way to the prosperity of Africa.