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Zimbabwe risks missing out on AfCFTA gains
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Zimbabwe is at risk of missing out on the vast opportunities of the African Continental Free Trade Area (AfCFTA) as bureaucratic delays stall the gazetting of tariffs and rules of origin needed to unlock trade under the pact.
The warning came this week from the Trade Law Centre (Tralac), Africa's leading trade policy think tank, during a two-day workshop in Harare organised by the Ministry of Women Affairs, the United Nations Economic Commission for Africa (Uneca), and other partners.
"Zimbabwe has made an offer that covers 90% tariff lines, and there is 10% left," Tralac executive director Trudi Hartzenberg told delegates. "Currently, tariff lines don't have rules of origin. Until we agree on the rules of origin, we are not going to make a tariff offer for the goods. It means Zimbabwe cannot trade under AfCFTA until the legal processes are completed."
Her remarks highlight how Harare remains shut out of a US$3,4 trillion market of more than 1,3 billion people. AfCFTA, launched in 2018, is designed to remove duties on 90% of goods, cut non-tariff barriers, and create a seamless continental market.
Seven years on, 54 African states have signed the agreement and 48 have ratified it. Implementation has started in several countries, with Kenya, Ghana, and Rwanda already exporting under AfCFTA pilot programmes. In Zimbabwe, however, progress has stalled at the level of gazetting schedules and rules.
The delay is raising fears that local industries — already weakened by high costs and low capacity utilisation — could fall further behind regional competitors. The Zimbabwe National Chamber of Commerce (ZNCC) reported earlier this year that factories were operating at just 52% capacity, weighed down by foreign currency shortages, weak domestic demand, and lack of affordable finance.
ZNCC Mashonaland regional manager Kudakwashe Matare warned that unless Zimbabwe addresses its internal inefficiencies, it will not compete under AfCFTA.
"We must deal with internal issues first — cost of doing business, infrastructure, local authority charges, and inefficiencies in institutions such as Zimra," he said. "These factors weaken our competitiveness not only regionally but also beyond."
The African Development Bank has described AfCFTA as the world's largest trade bloc in terms of participating countries, with potential to boost intra-African trade by up to US$70 billion by 2040. Experts say for Zimbabwe, with its mineral wealth, fertile land and skilled workforce, the pact could be a lifeline to revive industry and expand exports beyond a small domestic market.
But delays in finalising tariff schedules and rules of origin risk eroding the "first mover advantage" enjoyed by more proactive African states.
Zimra officials stressed they are ready to roll out the agreement once government acts. "As for when the tariffs will be gazetted, this will be answered by the Ministry of Foreign Affairs and International Trade. We are ready to implement," said Rutendo Mapani, Zimra's technical customs manager.
Until then, Zimbabwe remains on the sidelines of what is being hailed as Africa's biggest economic revolution.
The warning came this week from the Trade Law Centre (Tralac), Africa's leading trade policy think tank, during a two-day workshop in Harare organised by the Ministry of Women Affairs, the United Nations Economic Commission for Africa (Uneca), and other partners.
"Zimbabwe has made an offer that covers 90% tariff lines, and there is 10% left," Tralac executive director Trudi Hartzenberg told delegates. "Currently, tariff lines don't have rules of origin. Until we agree on the rules of origin, we are not going to make a tariff offer for the goods. It means Zimbabwe cannot trade under AfCFTA until the legal processes are completed."
Her remarks highlight how Harare remains shut out of a US$3,4 trillion market of more than 1,3 billion people. AfCFTA, launched in 2018, is designed to remove duties on 90% of goods, cut non-tariff barriers, and create a seamless continental market.
Seven years on, 54 African states have signed the agreement and 48 have ratified it. Implementation has started in several countries, with Kenya, Ghana, and Rwanda already exporting under AfCFTA pilot programmes. In Zimbabwe, however, progress has stalled at the level of gazetting schedules and rules.
The delay is raising fears that local industries — already weakened by high costs and low capacity utilisation — could fall further behind regional competitors. The Zimbabwe National Chamber of Commerce (ZNCC) reported earlier this year that factories were operating at just 52% capacity, weighed down by foreign currency shortages, weak domestic demand, and lack of affordable finance.
ZNCC Mashonaland regional manager Kudakwashe Matare warned that unless Zimbabwe addresses its internal inefficiencies, it will not compete under AfCFTA.
"We must deal with internal issues first — cost of doing business, infrastructure, local authority charges, and inefficiencies in institutions such as Zimra," he said. "These factors weaken our competitiveness not only regionally but also beyond."
The African Development Bank has described AfCFTA as the world's largest trade bloc in terms of participating countries, with potential to boost intra-African trade by up to US$70 billion by 2040. Experts say for Zimbabwe, with its mineral wealth, fertile land and skilled workforce, the pact could be a lifeline to revive industry and expand exports beyond a small domestic market.
But delays in finalising tariff schedules and rules of origin risk eroding the "first mover advantage" enjoyed by more proactive African states.
Zimra officials stressed they are ready to roll out the agreement once government acts. "As for when the tariffs will be gazetted, this will be answered by the Ministry of Foreign Affairs and International Trade. We are ready to implement," said Rutendo Mapani, Zimra's technical customs manager.
Until then, Zimbabwe remains on the sidelines of what is being hailed as Africa's biggest economic revolution.
Source - The Independent
