World Trade Centre Association pin points agriculture as key Africa sector

The World Trade Centre Association convened this week to explore business opportunities in Africa, a continent with vast untapped potential. Robin van Puyenbroeck, the Executive Director in charge of Business Development at the World Trade Centers Association, highlighted the key themes discussed during the conference. The event gathered 600 businesses and World Trade Centers from around the globe virtually for a General Assembly and an AI-powered business matchmaking event. The focus was on Africa as a continent of opportunity, emphasizing the importance of access to funding for small and medium enterprises. The discussions pointed towards agriculture as a crucial sector for growth and investment. With the continent facing food insecurity, there is a significant opportunity to develop the agriculture market in Africa. The Africa Continental Free Trade Area was also a key topic, highlighting the need to educate and inform businesses about the initiative's potential benefits. Additionally, discussions revolved around supporting intra-African trade and dispelling misconceptions about doing business in Africa. Representatives from World Trade Centers in Algeria, Ivory Coast, Ghana, Mauritius, and Nigeria shared insights on the business environment in their respective countries, showcasing the opportunities available. The gap between perception and reality when it comes to doing business in Africa was addressed, with an emphasis on the continent's growing food market worth $750 billion. The majority of food production is domestic, offering significant prospects for intra-African trade. The session shed light on the Africa Continental Free Trade Area (AFCFTA), which aims to boost trade among African countries. While awareness of the policy tool remains limited globally, the World Trade Centers play a crucial role in facilitating connections and trade among small and medium enterprises. The AFCFTA's potential impact on regional trade was discussed, emphasizing the need for more businesses to leverage the opportunities it presents. In particular, the role of the World Trade Centers in bridging the gap between policies and businesses was highlighted. The challenge of accessing financing for SMEs was a major point of discussion during the conference. With statistics showing that only a small percentage of enterprises transition to medium or larger companies, the need for improved access to funding was underscored. The Africa Development Bank offers valuable resources and support, yet many small businesses are unaware of the assistance available. The World Trade Centers were identified as key players in disseminating information and connecting businesses with funding opportunities. The importance of direct outreach to potential recipients, both within Africa and internationally, was emphasized as a way to foster business growth and development. Apart from agriculture, other sectors with promising trade potential in Africa were highlighted. Services, tourism, and technology were identified as areas poised for growth. The continent's share of global trade is currently under 3%, indicating significant room for expansion. Services play a crucial role in the economy and represent untapped opportunities for trade and investment. The impact of COVID-19 on global trade was also acknowledged, with supply chain disruptions causing challenges for many companies. Rising freight and shipping costs, along with supply chain bottlenecks, have intensified pressures on businesses. The shift towards near-shoring and regional trade partnerships presents opportunities for Africa to play a key role in supporting global supply chains. As the world navigates through the complexities of post-pandemic trade, Africa's strategic position and the potential of initiatives like the AFCFTA offer a beacon of hope for increased trade activity and economic growth.