adminSitshengisiwe Ndlovu
Trade & Technology
The McKinsey Global Institute reports that globally, women constitute half of the working age population and yet they contribute only 37 percent to the global GDP. This is a setback for global economic growth as it cannot take advantage of the potential inherent in this demographic dividend.
Women economic advancement can contribute as much as US$12 trillion in the global economy. Despite well-meaning policies being rolled out by countries, gender inequality gap could be closed after 108 years posits World Economic Forum Gender Gap Report of 2020.
According to the WEF Gender gap Report, in Sub–Sahara Africa, Zimbabwe is among the top 10 countries with an index of 0,730 globally. Rwanda is leading in Africa with an index ranking of 0,791.Trade policies that lack a gender perception inadvertently perpetuate gender inequality.
UNCTAD advises that mainstreaming gender in trade policy means ensuring that due consideration is given to gender inequalities and implications at every stage of the trade policy. This strategy ensures holistic economic growth and leaves no one behind.
Most trade agreements do not contain explicit gender-related provisions. Furthermore studies have observed that some trade agreements capture gender clauses just in the preamble with no further chapters or trade rules to articulate gender issues .
Our regional economic communities have gender specific instruments that champion gender interventions, it is the implementation of these provisions that have not been satisfactory.
The AfCFTA is a progressive trade agreement is based on socio–economic inclusivity whose objective is to leave no one behind. It has gone further than the preamble with Article (3E) and more articles that promote men and women economic advancement if leveraged successfully.
The AfCFTA Agreement does not have a gender-explicit provisions, it does not have a dedicated chapter to gender, however, the specific articles highlight how the State Parties acknowledge the complex link between trade and gender.
A careful balance between trade and gender through gender responsive trade policies will be the means to achieve the triple bottom line.
The AfCFTA protocol on goods through Annex 3 Customs Cooperation, Annex 4 Trade Facilitation to mention a few, although not gender specific, can benefit both men and women. However, because women are disproportionately represented the provisions , leveraged through a gender lens, can address gender inequalities that are prevalent.
Numerous research has revealed how women as economic actors play multiple roles in the economy; as traders, producers, workers, consumers, tax payers and unpaid care workers. These roles at times are conducted in parallel with results of time poverty being faced by women more than men. The provision of trade facilitation within the AfCFTA leveraged properly, will result in the harmonisation, automation and simplification of customs procedures.
The seamless trade will benefit these vulnerable group of traders, as they will have more time to attend to their roles, and in some instances they might not need to travel to conduct their businesses.
High trade costs have been identified as a gender–differentiated trade barrier. The Continental Simplified Trade Regime provided by the provision of the AFCFTA will motivate the small scale traders entrepreneurs to be part of formal trade nevertheless enabling access to regional value chains and other opportunities within the AfCFTA.
This procedure is currently operational within the EAC and COMESA regional economic communities.
The challenges on the low uptake of the current simplified trade regime has been lack of awareness, rules of origin limitations, connectivity and a capped value of the consignment that can be cleared under the STR .
Clearance under STR has been limited to wholly produced or wholly grown excluding manufactured goods. In some cases network connectivity has made the use of STR impossible resulting in traders failing to enjoy preferential treatment of their goods.
It has been established that the loss of revenue from tariffs is far less than the revenue lost from non-tariff barriers. It becomes critical for state parties to fast track the establishment of the CSTR as a solution to non-tariff barriers. The CSTR will deliver the low hanging fruits to the vulnerable groups of people who mostly are women within the AfCFTA.
As indicated above gender mainstream of the AfCFTA through the leverage of the provided provisions context specific complimentary measures will be crucial to achieve the socio-inclusivity objective of the AfCFTA.
This is a huge task for the government to deliver singularly. Article 27(c) Protocol on Services on Technical Assistance, Capacity Building mandates state parties to seek collaboration with developmental partners so as to improve export capacity for MSMEs including women groups.
The assistance can be further extended to conduct the impact of trade policies on women’s economic activities. UNCTAD has a trade and gender tool box to measure the impact of trade reforms on the vulnerable groups.
The AfCFTA, while it does not have a dedicated chapter on gender, its objective is to achieve socio-inclusive sustainable development that will leave no one behind. The challenge is for state parties to design gender-responsive trade policies that will create wealth for the vulnerable groups so as to uphold the AfCFTA objective of sustainable economic growth that addresses gender equality.
Sitshengisiwe Ndlovu president of OWITZIMBABWE: MBA/UNCTAD: Trade and Gender Linkages/ IAC Dip/Cert: Trade in Services and SDGs: Robert Schuman Center of Advanced Studies/IDEPCert: Making the African Continental Free Trade Agreement Work. She writes in her personal capacity. For more on trade matters visit her Blog on website: owitzimbabwe.org
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