Mozambique’s official entry into the African Continental Free Trade Area (AfCFTA) is scheduled for this month, a move that is expected to further boost the country’s economy, according to a statement released by the newspaper Noticias.
The country’s official entry into the AfCFTA is expected to increase production in its various areas, maximise business opportunities and increase regional imports and exports, which will make access to inputs easier.
In effect, there could be a reduction in the cost of consumer goods and an increase in employment opportunities through increased foreign direct investment, as well as the establishment of regional value chains.
According to Silvino Moreno, Minister of Industry and Trade, quoted by the news agency, the participation of the private sector in this process will be crucial. For this reason, he called on the private sector to exploit all the opportunities that joining this platform promises to create.
‘This month we’re actually going to join the AfCFTA and we want the private sector to seize this opportunity,’ he urged.
On the other hand, the minister recognised that the country is joining this African Continental Free Trade Area with some deficiencies in its ability to do business. As such, he felt there was a need to seek, initially, a better understanding of the processes and methodologies, so that greater advantage can be taken of this model with a view to benefiting the national economy.
Last year, the International Monetary Fund (IMF) stated that the creation of the AfCFTA could lead to an increase of more than 50 per cent in trade between the continent’s countries and that, once operational, it would also have a significant effect on trade between Africa and the rest of the world, with an increase of 29 per cent in exports and 7 per cent in imports.
