COVID-19: How to address trade barriers in SSA

As the African continent grapples with the ongoing COVID-19 pandemic, trade ministers across the region are calling for the reopening of borders. This call comes amidst the postponed implementation of the African Continental Free Trade Agreement (AFCFTA), now rescheduled for January 2021. Bismarck Rewane, CEO of Financial Derivatives, shared his insights on these developments in a recent interview on CNBC Africa. Rewane emphasized the importance of regional trade in Africa, citing the low levels of intra-African trade prior to the pandemic. He highlighted the potential benefits of initiatives like the AFCFTA and open skies agreement for boosting regional integration and economic growth. Despite the challenges posed by the current crisis, Rewane urged African countries to lay the groundwork for enhanced trade relationships and economic cooperation. Recognizing the need for safety measures amid the pandemic, he also pointed out the delicate balance between reopening economies and maintaining public health. Furthermore, Rewane discussed the impact of COVID-19 on foreign direct investment (FDI) in Africa, noting both the uncertainty and potential opportunities for investors. He outlined the factors that could attract FDI to the continent, including incentives, policy responses, and improvements in the business environment. While acknowledging the challenges ahead, Rewane expressed optimism about Africa's ability to navigate trade barriers and investment obstacles in the face of the pandemic. As the region continues to address the economic fallout of COVID-19, collaborative efforts and strategic initiatives will be key to sustaining growth and attracting investment in the post-pandemic era.