AfCFTA promotes gender inclusivity

Sitshengisiwe Ndlovu-Trade Matters

The Africa Continent Free Trade Agreement came into operation on January 1, 2021. The AfCFTA in its preamble, captures gender and further proceeds to enunciate socio-economic inclusivity as one of the objectives of the agreement. 

This sets the prism through which the negotiators should design the AfCFTA including its implementation that will consider the gender concerns as enshrined within the AfCFTA.

The above interventions were hailed worldwide, however, it was still felt the AfCFTA could go deeper through enactment of a separate protocol dedicated to women, MSME and Youth. 

The 13th Extra Ordinary Session held on December 5, 2020 mooted the enactment of the Women In Trade Protocol that will enable women economic empowerment through trade.

African countries including the diaspora have been seized with the design of the Women in Trade Protocol to ensure the instrument reflects the interest of women in trade and the heterogeneity that characterises their business activities within the economy.

The consensus among development economists is the undisputed symbiotic relationship between gender and trade; trade as a conduit that alleviates poverty and delivers on economic growth provided the policies have gender considerations mainstreamed during the design process. Early economists acknowledged the essence of expanding the economic pie, however, they overlooked the gender dimensions attendant in economic theories.

For the AfCFTA to achieve equitable economic growth whereby no one is left behind, countries have come up with inputs that will be key to ensure that inequality disparities are not enhanced but everyone becomes an effective economic player within the market of 1,3 billion created by the AfCFTA. 

The acknowledged fact that trade agreements tend to benefit large multinational organisations while the MSMEs and women owned companies are left behind inspired Article 27 of the AfCFTA. 

This Article specifically targets women and MSMEs for capacity building in exports to ensure effective participation within the intra -Africa trade.

The survey done by International Trade Centre last July revealed that quite a significant number of women organisations, in Africa   were not involved in the AfCFTA negotiations. 

It is most likely that the MSMEs and women’s organisations could be not aware of AfCFTA Article 27 provisions such that it becomes important to create AfCFTA awareness including the specific provisions that enable constituencies to participate effectively in intra -regional trade.

Premised on the regional economic communities, it will be reasonable to expect harmonisation of customs procedures within the RECs that make up the AfCFTA. 

Currently the simplified trade regime introduced by COMESA is not found within the SADC while some members within COMESA have not implemented the STR procedure in their countries. 

This fragmented approach impedes seamless trade, and the Women in Trade Protocol negotiations could  persuade state parties of the AfCFTA to harmonise customs procedures especially the STR including the thresholds as a way maintaining predictability within the AfCFTA.

Informality pervades most women businesses and most MSMEs. 

The call for formalisation of these businesses has been met with suspicion by some of these businesses. 

It is prudent for all the stakeholders to come together and unravel what drives formality with a notion to overcome the barriers against formalisation of businesses. 

The AFCFTA will largely benefit formalised businesses: in order to achieve socio-economic inclusivity, which is one of its objectives, state parties must review company registration legislation, provide fiscal incentives and fiscal education among a host of interventions that can encourage formalisation of businesses. 

Increasingly some research findings are alluding to informalisation of businesses as a preferred choice by some of these businesses due to some perceived advantages.  

Nevertheless, other research points informalisation as the consequent stunted growth of these businesses. 

The Women in Trade Protocol should reflect the desire for MSMEs to be registered entities through capacity building that will be rolled out through well-defined structures with clarity on the financiers to ensure its sustainability.

The Women in Trade Protocol should reflect on the dynamics common with trade liberalisation such as the inherent risk of business losses including shutdown in the short term. 

Women’s businesses will overly bear these negative effects of trade liberalisation. Injury to the domestic market that may ensue may be mitigated through a fund that will cover women’s affected businesses. 

This can be strengthened through a binding clause within the instrument such as the Dispute Settlement Mechanism found in other trade agreements.

As the negotiations progress on Women In Trade Protocol, it is important to ensure that the provisions negotiated are legally binding and enforceable at law. 

The monitoring and evaluation mechanism should also be in place before and after trade agreements are enforced to ensure timeous intervention to alleviate any negative impact from the trade agreement.

Sitshengisiwe Ndlovu is president of OWITZIMBABWE: MBA/UNCTAD: Trade and Gender Linkages/ IAC Dip/Cert: Trade in Services and SDGs: Robert Schuman Center of Advanced Studies/IDEP Cert: Making the African Continental Free Trade Agreement Work. She writes in her personal capacity. For more on trade matters visit her Blog on website: www.owitzimbabwe.org