CO-OP TRADE
African Continental Free Trade Area:
Co-operatives Fostering Implementation By June Njoroge In addition, it was meant to share knowledge that enables Co-operatives and other stakeholders in Africa; to engage effectively in advocacy and policy dialogue mechanisms to support the negotiations and subsequent implementation of AfCFTA.
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he African Continental Free Trade Area (AfCFTA) is a game changer in the African regional and international trade; projected upon completion to become the largest free trade area in the world, since the establishment of the World Trade Organization (WTO). The Co-operative business model was highlighted as instrumental and an invaluable conduit in the fulfilment of this endeavor, with African Co-operatives identified as key vehicles in the successful realization of this new economic path for the continent. AfCFTA creates a single continental market for goods and services as well as Customs Union, with free movement of capital and business persons unleashing great potentials and opportunities which include, reduction in tariffs, better co-ordination within the supply and demand chains, improvement of agricultural value chains among many more. The estimated value of Co-op to Co-op trade in 2013 was US$ 10 billion (ICA 2015). The Dalberg (WTO, 2015) analysis shows that the opportunity for Co-op to Coop trade could increase to US$13 billion and realistically achievable to US$18 billion. The International Co-operative Alliance Africa (ICA-Africa) held an online regional conference in mid-October on ‘Fostering
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The regional Director of ICA Africa, Dr. Sifa Chiyoge, shed light on the interface between AfCFTA and how African cooperatives can leverage and engage in intra-African trade.
Implementation of the African Continental Free Trade Area through Co-operatives,’ with key government officials, Co-operative leaders, partners and other stakeholders. The conference was aimed at identifying potential synergies, issues, opportunities and benefits for African Co-operatives, emanating from the implementation of AfCFTA; spurring and reengineering co-operative organizations in Africa to engage in Co-op to Co-op trade; enhancing Co-operative network and building the Cooperative ecosystem for intra-trade through AfCFTA; identifying the importance of leveraging on technology to enhance Co-op to Co-op trade in Africa.
...the World Bank notes that the agreement could add $76 billion in income to the rest of the world.
SACCO TIMES | DECEMBER 2020 - JANUARY 2021
ILO Co-op was a chief participant and the manager Ms Simel Esim, highlighted findings from an ILO assessment, on the potential of co-operatives in the SADC region to engage in imports and exports, with a focus on the agricultural sector. She noted that trade was deeply connected to Co-operative development, underlining how co-operative development programmes can be integral in unlocking the potential of Cooperatives; towards becoming better integrated into global supply chains. She further noted that cooperative to co-operative trade, can be a socially innovative model toward more inclusive, transparent and sustainable global supply chains, aligned with SDG 12 on sustainable consumption and production. She pointed out that during COVID-19 pandemic, shortening supply chains by establishing direct purchasing
