Zimbabwean government had decided to pull out of AfCFTA negotiations based on apprehensions that the nation may become a market for highly industrialised nations
Zimbabwe is in the final stage of concluding its agreement to join the Africa Continental Free Trade Area Agreement AfCFTA. Once concluded the country will be part of the continent’s 55 nations, creating a total of 1 billion customers for Africa’s goods and services through a lucrative $3.4 trillion Gross Domestic Product. According to t the agreement, Zimbabwe will open up 97 % of its markets to both imports and exports for goods originating from within the continent.
Though trading under the new agreement commenced on January 1, 2021 under AfCTA, Zimbabwe is still in the final stage of joining its continental counterparts. Acting secretary in the Foreign Affairs and International Trade, Beatrice Mutetwa stated that Zimbabwe is almost ready to go. She explained that Zimbabwe’s first tranche of liberalisation will begin following the gazetting of the country’s Tariff Offer.
It may be recalled that the Zimbabwean government had decided to pull out of AfCFTA negotiations based on apprehensions that the nation may become a market for highly industrialised nations. Political experts speculated that the country’s manufacturing sector was too weak to be exposed to international competition and that the agreement may expose locals to unfair competition. The latest announcement to join the continental bloc is a reversal of the former decision.
Under the trade agreement, developing countries like Zimbabwe will gradually eliminate tariffs and open its markets to African exports and imports over five years, for non- sensitive products which constitute 90 % of the tariff handbook.Out of the remaining 10% of the tariff handbook, 7 %, designated as sensitive products will be liberalised in 10 years, and the balance 3 % designated as exclusion list will be exempted from trade liberalisation.
