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economic

Fostering Inclusivity in AfCFTA: Creating a Conducive Environment for Small and Medium-sized Enterprises (SMEs)

  • Posted by Francis Nyonzo
  • Categories economic, Market, Op-ed
  • Date May 18, 2023
  • Comments 0 comment

Why women and Youth inclusion is essential?

Liberty Sparks held a webinar on the 27th of March 2023, discussing whether the African Continental Free Trade Area (AfCFTA) is the world’s most youth and women-friendly trade agreement. The webinar also explored how nations can engage and include women and youth in their development agenda. Population data from the World Bank shows that from 1960 to 2021, the percentage of women in the total population is greater than that of men in sub-Saharan Africa, more than 50% of the total population. With 70% of sub-Saharan Africa’s population under 30, Africa is the youngest globally. Regardless of the African population having more women and youth, economic opportunities are unevenly distributed in Africa, with almost 60% of Youth in Africa being jobless and suffering among women.

The AfCFTA is a historic agreement signed by African countries to create a single market for goods and services on the continent. It is the world’s largest free trade area in terms of participating countries since it brings together 55 African countries with a combined population of over 1.3 billion people. The agreement offers a unique opportunity to promote economic growth and development. Access to these opportunities is to be inclusive of women and youth who have been left behind for a long time.

The go-about making AfCFTA inclusive

African governments and policymakers must take several steps to ensure that AfCFTA is inclusive and benefits women and youth. First, African governments and policymakers must ensure that women and youth are adequately represented in decision-making. This includes including them in the planning and implementation stages of the agreement. Governments should also establish mechanisms for monitoring and evaluating the agreement’s impact on women and youth. This will make them aware of the agreement and exploit the opportunities.

Secondly, African governments need to support women and youth entrepreneurs to take advantage of the opportunities presented by the AfCFTA. This includes improving access to finance, training, and education and creating a conducive environment for small and medium-sized enterprises (SMEs) to thrive. African governments could also provide tax incentives and support to women and youth-led businesses to encourage participation in the AfCFTA. Taking the example of Tanzania, the legal and financial environment in Tanzania is challenging for micro-businesses. The legal climate encourages the oppressive and brutal removal of small and medium-sized enterprises (SMEs) by local authorities. There is a multiplicity of taxes and pervasive corruption. Small and medium-sized enterprises (SMEs) have limited access to finance and often prefer to obtain loans from relatives and friends, fearing the seizure of their collateral by traditional financial markets.

African governments need to invest in infrastructure to support the AfCFTA’s implementation. This includes improving transport and communication infrastructure, particularly in rural areas, making trade easier for women and youth-led SMEs. African governments could also invest in energy, water, and sanitation infrastructure, enabling SMEs to operate more efficiently and effectively. Investing in infrastructure is crucial for the success of the AfCFTA. This will facilitate SMEs’ trade and operation, especially in rural areas, where access to markets is often limited.

African governments and policymakers must address the gender and youth-specific challenges that may prevent women and youth from participating in the AfCFTA. This includes addressing cultural and social norms restricting women’s access to education, training, and employment opportunities. For example, in many African cultures, men are seen as the breadwinners and decision-makers in households, limiting women’s economic opportunities and access to education and training. Further, girls who marry early or have children at a young age are less likely to finish their education, limiting their opportunities for employment and entrepreneurship, and this is a common occurrence across Africa. Across the continent, women and girls who experience gender-based violence may be less likely to participate in education or the labour force due to physical or psychological trauma. There are also cultural biases against women and youth entrepreneurship: In some cultures, entrepreneurship may be seen as male-dominated, discouraging women and youth from pursuing business opportunities.

Governments should also address the digital divide by investing in digital skills training for women and youth, enabling them to use e-commerce and other digital platforms to trade. Many women and youth in Africa lack access to digital technologies, such as computers and smartphones. They, therefore, cannot take advantage of the opportunities offered by e-commerce and other digital platforms. This lack of access can limit their ability to participate fully in the economy and can contribute to their social and economic marginalization.

In conclusion, ensuring that AfCFTA is women and youth-inclusive requires concerted efforts from African governments, policymakers, and stakeholders. By providing the necessary support, addressing the specific challenges faced by women and youth, and creating a conducive environment for SMEs to thrive, the AfCFTA can promote inclusive economic growth and development for all Africans.

 

These are the writer’s own opinions and do not necessarily reflect the viewpoints of Liberty Sparks. Do you want to publish in this space? Contact our editors at [email protected] for further clarification.

Tag:#economics #market #afcfta

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Francis Nyonzo

Francis Nyonzo is an economist interested in social justice and digital rights. He's a development researcher with a Master of Science in Economics. He motivated to conduct research as a way to contribute to the creation of beneficial national policies and the eradication of poverty. He believes development is an outcome of good research and He's resourceful and skillful when conducting and designing research, data analysis, and reporting

Francis is available at [email protected].

Previous post

Building a Resilient and Diverse Agile Workforce for the African Continental Free Trade Area (AfCFTA): 5 Desirable Traits
May 18, 2023

Next post

AfCFTA; Africa’s New Trade Agreement: A New Era for the Agricultural Sector
May 22, 2023

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