The action is a part of efforts to industrialize the Continent and make it economically independent as well as diversify and boost exports among African nations through Export Trading Companies (ETCs).
This was said by Mr. Herbert Krapa, Deputy Minister of Commerce and Industry (MoTI), on Monday in Accra at a seminar to educate African nations on the importance of ETCs in facilitating intra-African trade under the AfCFTA.
The African Export-Import Bank (Afreximbank) and MoTI organized the event, which also covered how governments and other organizations funded, controlled, and ran ETCs.
Actual trade between Ghana, Kenya, Mauritius, Rwanda, Tanzania, and Tunisia has begun, according to Mr. Krapa. The dream of our ancestors will come true in the upcoming weeks.
According to him, the AfCFTA Initiative on Guided Trade was established by the Secretariat to put all the achievements on paper into practice and enable the industrial revolution and self-sufficiency of the continent.
If we make the right investments into ETCs, Mr. Krapa added, “trading goods and services from Harare in Bamako or Kigali, or exporting processed cocoa from Accra to the entire northern African region, should no longer be a nightmare.”
According to the Deputy Minister, ETCs would ensure that no one in Africa was left behind in the regional value chain, notably small and medium-sized firms (SMEs), young entrepreneurs, startups, light manufacturers, and large industries.
These value-chain participants will offer the warehousing, shipping, finance, insurance, risk management, and market intelligence necessary for the free trade area to function. They will also provide export and import services.
Therefore, he urged governments and members of the business sector to have the appropriate institutional framework, financial resources, infrastructure, and productive ability in order to benefit from what the AfCFTA offered.
The Deputy Minister reiterated the necessity for Ghana and other African nations to pursue industrialization and independence when discussing the current state of the global economy.
We should all be motivated to establish Ghanaian owned or partnered ETCs both locally and throughout Africa, as government institutions, exporters, financing businesses, manufacturers, SMEs, and everyone else in the export ecosystem. At all costs, the industrial revolution in Africa must be realized, stated the Deputy Minister.
According to Dr. Gainmore Zanamwe, Senior Manager of Trade Facilitation at Afreximbank, the absence of market knowledge is hindering the development of ETCs in Africa and making it harder for Member States to understand what other nations are producing and needing.
Despite being ineffectual in many African nations, he claimed that ETCs were essential for the development of smallholder farmers and traders because they allowed for the collection and bulk purchasing of produced items.
Dr. Zanamwe emphasized the advantages of industrialization, saying that it assisted in adding value to produced raw materials to improve revenue and employment creation, and he urged for the creation of an atmosphere that would allow ETCs to flourish in Africa.