One group of people who stand to benefit significantly from the AfCFTA are women, particularly those involved in trade. Women have long played an important role in the economic development of Africa, with many engaged in small-scale cross-border trade. However, women have historically faced significant barriers to participating in formal trade, such as lack of access to finance, limited business skills, and discriminatory laws and regulations.

The AfCFTA has the potential to address some of these barriers and promote greater participation by women in formal trade. For example, the Agreement includes provisions to reduce tariffs and other trade barriers, which could make it easier for women entrepreneurs to access markets and grow their businesses. Additionally, the AfCFTA establishes a protocol on the free movement of people, which could help women traders to move more freely across borders and expand their business networks.

Moreover, the AfCFTA recognizes the importance of gender equality and women’s empowerment for economic development. The Agreement includes a chapter on gender, which commits signatory countries to promoting women’s full and equal participation in the economy, including in trade. This chapter also calls for measures to address gender-based barriers to trade, such as discriminatory laws and regulations, and to support women entrepreneurs through access to finance, business development services, and other forms of support.

However, while the AfCFTA holds great promise for women in trade, there are also challenges that needs to be addressed. One of the biggest challenges is the lack of data on women’s participation in trade, which makes it difficult to design effective policies and programs to support women traders. Additionally, the informal nature of much of women’s trade means that they may not be able to fully benefit from the provisions of the AfCFTA, which are designed primarily for formal trade.

Another challenge is that female entrepreneurs face challenges in accessing finance, including high-interest rates, collateral requirements, and limited access to financial services. Governments and development partners can support women’s access to finance by creating targeted financing mechanisms, such as credit guarantee schemes, microfinance programs, and venture capital funds.

To address these challenges, it is important for governments, civil society organizations, and other stakeholders to work together to collect data on women’s participation in trade and to design targeted interventions to support women entrepreneurs. This could include initiatives to provide women with access to finance, business training and mentoring, and other forms of support to help them grow their businesses and participate more fully in formal trade.

In conclusion, the AfCFTA represents a significant opportunity to promote greater gender equality and women’s empowerment in trade in Africa. By reducing trade barriers, promoting free movement, and addressing gender-based barriers to trade, the Agreement has the potential to support women entrepreneurs and promote greater economic growth and prosperity for all African nations. However, to fully realize this potential, it is important for stakeholders to work together to address the challenges facing women in trade and to design targeted interventions to support their participation in formal trade. By doing so, the AfCFTA can create new opportunities for women entrepreneurs and traders to grow their businesses, create jobs, and drive economic growth on the continent. Women’s economic empowerment can also help to reduce poverty, promote gender equality and create more inclusive societies. Therefore, it is crucial to ensure that women have access to the resources and support they need to participate fully in the AfCFTA and the wider economy.

The African Continental Free Trade Area (AfCFTA) is a flagship project of the African Union’s Agenda 2063, which is a blueprint for attaining inclusive and sustainable development across the continent over the next 50 years. The Agreement creates a single market for goods and services among African countries, with the goal of increasing intra-African trade and boosting economic growth. However, for the AfCFTA to reach its full potential, significant investments in infrastructure are needed.

Infrastructure is a critical ingredient for economic development, and Africa faces significant infrastructure deficits. The African Development Bank estimates that Africa needs to invest $130-170 billion per year in infrastructure to meet its needs against its annual investment of $60-70 billion per year. The AfCFTA can play a significant role in addressing this infrastructure deficit by providing a framework for regional cooperation and investment.

Infrastructure investments are needed in several key areas to support the AfCFTA. First, transportation infrastructure is essential to connect African countries and enable the movement of goods and people. This includes investments in roads, railways, ports, and airports. Improved transportation infrastructure will reduce transportation costs, making it easier and cheaper for businesses to trade across borders. It will also increase access to markets, opening up new opportunities for businesses in remote areas.

Second, energy infrastructure is crucial for economic growth and development. Energy infrastructure, including power generation and transmission networks, is critical to the success of the AfCFTA as it enables businesses to operate efficiently and effectively, particularly in sectors that are energy-intensive such as manufacturing and agriculture. Reliable and affordable access to electricity is essential for businesses to operate and for households to improve their quality of life. Investments in renewable energy, such as solar and wind power, can help Africa meet its energy needs sustainably and reduce reliance on fossil fuels.

Another important enabler of the AfCFTA which is becoming increasingly important for economic growth is digital infrastructure. The COVID-19 pandemic has highlighted the importance of digital connectivity for remote work, education, and commerce. Investments in broadband and mobile networks can help connect people and businesses across Africa, creating new opportunities for trade and economic growth. Digital connectivity can also help businesses access new markets and customers, reducing barriers to entry and promoting competitive intra-regional trade across African countries.

Finally, investments in social infrastructure will be essential for building human capital and ensuring that people can participate fully in economies. Social infrastructure refers to facilities and services that support the well-being of individuals and communities, such as healthcare, education and housing. Investing in social infrastructure is necessary to ensure that the benefits of increased trade and economic growth are shared widely and that no one is left behind. For instance, providing accessible and affordable healthcare services can improve workforce productivity, while investing in education can equip young people with the skills needed to compete in the job market. Thus, social infrastructure investments will be critical in ensuring that the AfCFTA contributes to sustainable and inclusive economic growth across the African continent.

The AfCFTA can help create demand and mobilize investments in infrastructure by providing a framework for regional cooperation and investment. The Agreement includes provisions for trade in services, which can provide opportunities for businesses in the infrastructure sector to participate in cross-border trade. The AfCFTA also establishes a framework for investment, including the establishment of an AfCFTA Investment Forum to promote investment in the region.

However, significant challenges remain. Financing infrastructure investments is a major obstacle, and many African countries face significant debt burdens. Corruption and lack of transparency can also hinder investment and make infrastructure projects more costly. Addressing these challenges will require strong political leadership, sound governance, and effective institutions. In conclusion, infrastructure investments are critical for realizing the full potential of the AfCFTA because it plays a key role in enabling trade. By investing in infrastructure, Africa can unlock its potential and create a more prosperous future for its people.

CHALLENGES AND OPPORTUNITIES FOR WOMEN IN ZAMBIA’S ARTISANAL SMALL-SCALE MINING (ASM) SECTOR

By Alice Pearce (PMRC Senior Researcher)

In Zambia, the mining sector is the largest contributor to the Gross Domestic Product (GDP) and one of the major employing sectors. However, the sector only accounts for about 7.8% of women against 92.2% of men; this is according to Zambia’s 2020 Labour Force Survey. Despite the considerable environmental and economic benefits of inclusive participation of women in the sector, such as income generation and participation in the management of natural resources, many women continue to be exploited either informally or in its auxiliary sectors with impediments for women to penetrate. Factors such as education and stereotyping of women have been identified as major gender barriers. In other similar fields, low women’s participation is evidenced in the construction and energy sectors.

The emergence of organised Artisanal Small-Scale Mining (ASM) poses an opportunity for better participation of women in the mining industry. However, they tend to earn only one-quarter of what men earn in the ASM sector. In addition, women do not enjoy the same opportunities around access to, control over and benefits from artisanal mining in their communities.

A myriad of challenges negatively impacts women, such as inadequate technical skills, the cost of obtaining mining rights and related fees, limited access to financing, exploitative pricing of minerals as well as negative cultural norms and beliefs. These challenges are mutually reinforcing in nature in that various factors converge to impact women differently depending on their socio-economic status. For instance, women with inadequate access to financing are unable to meet the costs attached to obtaining mining rights which also makes their mining activities vulnerable as they operate outside the legal framework where formalisation strategies have little impact on their productivity. Similarly, they are less likely to have greater negotiating powers over their minerals, thus, limiting their potential to expand and reap the benefits of the sector. Inadequate technical skills and lack of access to geological information is also a major barrier for women to penetrate the sector and improve their financial capacity since geological information is crucial in developing bankable business proposals that can be avenues for funding. This calls for policies that promote women’s economic empowerment and inclusion.

The ASM subsector has the potential to drive economic growth, alleviate poverty, and contribute to development. As a new focus is being placed on income-generating opportunities, women can be involved in the various stages of the mineral value chain. The sector presents an opportunity for locals to own their minerals and engage in mining activities since ASM rights are reserved for local citizens as espoused in the Mines and Minerals Act of 1995. However, many of these activities remain undocumented and underdeveloped. Therefore, there is a need to map formalisation strategies. Similarly, there is a need to redefine the ASM subsector through the development of stand-alone legislation and directorate to adequately support the subsector’s growth.

Notwithstanding the various challenges, there are growing opportunities for women to tap into non-traditional minerals such as aggregate, flat stones and pebbles, among others which are relatively easy to identify and extract. Value addition in ASM is also able to create more jobs for women and youth and encourage innovation for mineral processing. A key example is in the jewellery and artefacts industry. The processing of minerals for value addition is a critical component to increase revenue generation and derive economic benefits for women beyond ASM activities. Therefore, there is a need to increase opportunities for women to earn income through value-added livelihood opportunities beyond ASM, which is directly linked to reducing poverty in artisanal mining communities. Thus, investments in processing centres such as the Gemstone Processing and Lapidary Training Centre are a critical aspect of the promotion of value addition of local minerals.

Finally, in order to advance women’s engagement in the sector, there is a need to improve access to financing and machinery necessary for productivity as well as build capacity and improve access to critical information such as geological information. Similarly, there is a need to support the formalisation of these activities in order to account for women’s contribution to the mining sector as well as extend financial and technical support to these ventures. In addition, there is a need to encourage cooperatives and joint ventures among women-led initiatives in order to facilitate economic development among women capable of contributing positively to the growth of the Zambian economy.

#UnlockingZambiasPotential

By Emmanuel Mumba – PMRC Research Assistant

The economic prospect for Zambia is in recovery mode, having experienced a wave of financial and economic deterioration in the last decades, which, together with the adverse effects of the COVID-19 pandemic, that saw the country default on its Euro bond payments in 2020. The World Bank projects the economy to grow by 3.8% between 2022 to 2024. Critical to this projection which forms the basis of this article, include; a stable macroeconomic framework, predictable mining regime, positive copper price outlook, improved balance of payments and trade openness.

It is well documented that Zambia is comparatively located geographically. However, the country has not advanced itself to realise this potential. Against this background, the government has embarked on an economic agenda to reconfigure the country’s growth framework and has identified regional economic linkages as critical drivers. Among other economic linkages is the Walvis Bay-Ndola-Lubumbashi Development Corridor, a market topology linking Namibia, Zambia and the Democratic Republic of Congo (DRC). The significance of this development corridor is that Zambia already enjoys favourable trade balances with Namibia and DRC. Therefore, this lays a proper foundation for the country not only to scale up its trade volume with the two countries but also extend its footprints beyond Africa. However, critical to this depends on how the country essentially leverages its stable macroeconomic framework to attract the much needed private sector investment necessary to scale up production in the manufacturing value chain. The Foreign Private Investment & Perceptions Survey (2021) revealed that political stability and good governance environment are major determinants of the private sector investment influx in Zambia.  Further, the expended trade volume prospects will also depend on how the country leverages its agricultural potential. Empirically, aside from having favourable weather conditions suitable for a variety of crops, Zambia accounts for about 60% of natural water bodies in southern Africa, thus, making it better positioned to circumvent different acute climate patterns on crop productivity through irrigation schemes as compared to other countries in the region.  Further, the unfortunate food insecurity in the DRC establishes a natural demand for the country’s agricultural outputs, for which the supply has remained low.

Zambia exported US$1.35B to Namibia in 2020, representing a 37.7% annualised rate increase from US$2.24M in 2000. The major products included Raw Copper at US$1.15B, Refined Copper at US$126M, and Electricity at $46M. Meanwhile, Namibia exported US$226M worth of merchandise to Zambia, translating to about 28.2% annualised increase from $1.58M in 2000. The main exports included Non-Fillet Frozen Fish at US$70.9M, Acrylic Polymers at US$35.3M, and Steel Bars at US$32.1M.  Regarding trade directions with the DRC, Zambia exported $952M worth of products to that country (about 15.4% annualized rate increase from $26.6M in 1995). This included Sulphuric Acid at US$96.9M, Copper Ore at US$87M, and Quicklime at US$66.7M, among others. Similarly, the Democratic Republic of the Congo exported US$372M to Zambia in 2020 (about 20% annualized rate increase from US$3.88M in 1995).  The main products included Refined Copper at US$290M, Copper Ore at US$65.9M and Cobalt Oxides and Hydroxides at US$8.13M.

Therefore, for the country to fully harness and expand its export volumes with Namibia, DRC and beyond, as mentioned earlier, PMRC urges the Government to continue on a policy trajectory of maintaining stable macroeconomic frameworks for the private sector to flourish. In turn, this will advance the investment attractability of the country in key sectors such as mining and manufacturing.  Further, agricultural comparativeness, which the country enjoys, should be utilized and buoyed with increased investments in crop productivity and irrigation schemes.