Remarks at Stakeholder Validation Workshop for the Draft AfCFTA Strategy & Implementation Plan

Honourable Minister of Commerce, Trade, and Industry, Senator Manqoba Khumalo

Principal Secretary, Babe Siboniso Nkambule

Representative of the European Union Delegation to the Kingdom of Eswatini,

Senior Government Officials,

Representatives of the AfCFTA Secretariat;

Colleagues from the UN System and from other Development Partners,

Captains of Industry

Members of the media

All Guests,

Distinguished Ladies and Gentlemen,

Sa-ni-bo-na-ni e-ku-se-ni 

On behalf of the UN Family in Eswatini and indeed on my own behalf, I would like to express sincere gratitude to the Government of Eswatini and to the ECA for bringing us together here over this very important meeting as part of the validation of the Eswatini Draft Strategy and Implementation Plan of the AfCFTA.

A special welcome to colleagues and experts from the AfCFTA Secretariat and from the Economic Commission for Africa.

I particularly want to thank you, Hon. Minister Manqoba Khumalo for your leadership of the process, and the ECA for leading the UN Family’s support to the process.

I spoke at the National Forum on the AfCFTA last November and I am delighted that today, a few months later, we are discussing the national Implementation Strategy which is a critical enabler for Eswatini to position itself to effectively engage with and benefit from the AfCFTA.

As an actor in the broader development field who has engaged with questions of Africa’s development, peace and stability, I know it has taken us many years to get here, where we are taking major steps towards creating a borderless trade zone in Africa as envisaged by the Abuja Treaty of 1991 establishing the African Economic Community (which we owe largely to the ECA Executive Secretary of the time, Prof, Adebayo Adedeji.)

Progress has been steady since the historic signing of the AfCFTA agreement on 21st March 2018 in Kigali, Rwanda, and the fact that we are talking about national strategies is a loud statement that the AfCFTA train has left the station,

The race is now on to actualize the dream of trade across the continent, and I applaud Eswatini for the progress it has made in embracing this opportunity.

It is indeed a cause for celebration and time to realise the dream!

As the UN Family in Eswatini, we fully support Eswatini's efforts to successfully implement the AfCFTA and to share/listen to insights on how we can work together to maximize its benefits.

Eswatini has the commendable and ambitious vision of transforming itself into a developed economy within a short period of time. As a small landlocked country with a relatively small population or market, the importance of trade and deepened regional integration to the economy cannot be overemphasised.

Significance of the AfCFTA and the National Implementation Strategy

Every good vision must be translated into action. The National AfCFTA Implementation Strategy is a critical tool for Eswatini's efforts to implement the AfCFTA. It outlines Eswatini's objectives, priorities, and actions towards implementing the AfCFTA; and provides a roadmap for Eswatini to take advantage of the opportunities presented by the AfCFTA, while addressing the challenges.

The strategy aligns – as it must - with Eswatini's national development agenda and the AfCFTA framework, which emphasizes the need to create an enabling environment for trade, enhance productivity, and promote regional integration.

I also applaud the alignment with the Sustainable Development Cooperation Framework signed between the GoE and the UN, where we have committed to contribute to a prosperous, just and resilient Eswatini whileleaving no one behind.

One of the four pillars of the Cooperation Framework is the promotion of sustainable and inclusive economic growth, which is critical and will go a long way in aiding the implementation of the AfCFTA  in the country.

Challenges and opportunities in implementing the strategy,

The implementation of the AfCFTA presents both opportunities and challenges for Eswatini.

On the one hand, the AfCFTA presents significant opportunities for Eswatini to expand its exports to other African countries, diversify its markets, and attract more foreign investment.

• According to the UN Conference on Trade and Development, Eswatini's intra-African exports accounted for only 1.3% of its total exports in 2019, indicating significant room for growth. In addition, the AfCFTA can provide a platform for Eswatini to enhance its value chains and competitiveness in the global market.
• Another area of potential cooperation - in the context of the AfCFTA,  is in the development of cross-border infrastructure, such as roads, rail, and ports, to facilitate trade between Eswatini and her neighbouring countries. Highlighting the potential benefits of the Lesotho-Eswatini Trade Corridor, which could link the two countries to the ports of Durban and Richards Bay in South Africa and enhance their access to international markets as an e.g.
• Another area of potential cooperation is in the promotion of intra-African investment, particularly in sectors with comparative advantages, such as agriculture, manufacturing, and tourism.

• According to the African Development Bank, intra-African investment can contribute to the development of regional value chains, thereby enhancing the competitiveness of African businesses in the global market.

One of the main challenges specific to the country – which I am sure the Government is alive to - is the need to improve the regulatory frameworks, infrastructure, and capacity building. For example, according to the World Bank's Doing Business 2022 report, Eswatini ranks 142 out of 190 countries in terms of ease of doing business, indicating the need for regulatory reforms to enhance the business environment.

Many of the challenges will require continental action:

• improving infrastructure across borders; addressing non-tariff barriers such as bureaucratic procedures, stringent licensing requirements, and lengthy customs procedures is necessary;
• eliminating protectionist policies adopted by some African countries; developing a harmonized legal and regulatory framework that accommodates all African;
• recognising that significant economic disparities between African countries may create challenges domination and exclusion.
• Importantly, Africa has to collectively address political instability, because instability in one country or region will pose a serious threat for the implementation of the AfCFTA including in terms of trade and investments.

UN Support for Trade Expansion and Development in Eswatini:

The United Nations has been working closely with the government of Eswatini to support the country's trade expansion and development goals.

• UNDP Business Reform Programme, supporting Government to improve the regulatory environment for businesses.
• A One UN Youth Offer which will build on the UNDP Youth Entrepreneurship Programme and will include 3 pillars: youth employment and entrepreneurship, skills development and training, and the health and wellbeing of young people.
• United Nations Conference on Trade and Development has been providing technical assistance to Eswatini to develop its trade policy framework, improve its trade-related infrastructure, and enhance its capacity to participate in regional and international trade negotiations.

Distinguished guests, ladies and gentlemen, as I conclude, allow me to make two points:

First is to emphasize the need for a coordinated, sustained and collaborative effort to ensure the successful implementation of the AfCFTA Strategy. The Strategy is only as good as its diligent and deliberate implementation across government and time.

Indeed, as we have been reminded, the benefits of the AfCFTA are not automatic. To enjoy maximum benefits of the AfCFTA, Eswatini needs to confront the challenges faced to ensure the successful implementation of the National AfCFTA Strategy.

Second, I urge that with every strategy that we develop, and in all our sectors, we must never remember the imperative of gender equity. Therefore, a key question is how we ensure that we create opportunity for our women to thrive in the new brave Africa that we are building, because ending poverty and creating prosperity will not be achieved if we leave our women and girls behind.

Honourable Minister, you are assured of the support of the entire UN System, with the technical lead of UNECA working with the AfCFTA Secretariat, in taking forward the National AfCFTA Strategy and Action Plan. 

I would like to thank the staff members of the Ministry of Commerce, Trade and Industry, and colleagues from the UNECA and the AfCFTA Secretariat for their tireless efforts in organizing this Forum.

I would also like to thank the Government of Canada for their commitment and support for the AfCFTA process. We are indeed grateful.

Ngi-ya-bo-nga be-ku-ne-ne!

I thank you.