photo from the internet
During February, the
trade deficit of Zimbabwe against South Africa has been increased to $44,4 million from $14,2 million in the same period last year, even though there was Statutory Instrument 64 of 2017 which astricted the importation of products that had local substitutes.
Stephen Karingi, director of Regional Integration, Infrastructure and Trade division at the UN Economic Commission for Africa told, journalists on Saturday there was existing autonomous liberalisation within the regional economic communities resulting in 56% of intra-African imports being duty free.
“There is not going to be any bigger shock to the trade between South Africa and Zimbabwe even though one would expect. In the regional value chain, Zimbabwe and South Africa operating in the Sadc FTA will be deepened, as countries from Sadc starts exporting to other parts of the continent,” Karingi said.
Zimbabwe was among the 44 countries that signed the agreement in Rwanda in March. Eleven countries — including Africa’s biggest
economy, Nigeria — are yet to sign. Of the 11, six have promised to sign once they complete internal processes.
Karingi was optimistic that Nigeria would sign and ratify AfCFTA before the 44 countries that signed it in Kigali have ratified.
“We would not have come this far without the leadership of Nigeria in the negotiation processes. Probably Nigeria will sign and ratify even before the 44 countries that signed in Kigali ratify,” he said.
Last week, UN under-secretary general and Economic Commission for Africa executive secretary, Vera Songwe implored countries to take bold actions as the free trade area would reposition the bloc as a competitive player in the global arena.
She said the liberalisation of trade under the regional economic communities means that AfCFTA was likely to affect only around 7% of Africa’s total imports under current trade patterns.
Total tax revenue in Africa tariff revenues accounted for around 15%,Songwe said that tariff reductions in AfCFTA were to be phased gradually, over a period of five years for under developed countries,10 years for least developed countries, or 10 years and 13 years respectively for sensitive products.
