Streamlining logistics to accelerate intra-Africa trade

The push for an interconnected Africa to boost trade within the continent and enhance export-led revenues has gained momentum, with the Trade Connect initiative spearheading the effort. CNBC Africa had the opportunity to speak with Felix Chege, the CEO of Real Resources Africa, to delve deeper into this initiative. The Trade Connect initiative is a significant stride towards creating a connected African marketplace and fostering exports from various sources, including SMEs and large-scale manufacturers. The primary focus markets for this initiative are the Democratic Republic of Congo, Zambia, and South Sudan, with the goal of driving intra-African trade and bolstering local economies while simultaneously aiding businesses in expanding into these markets. The initiative aims to increase export revenue, generate job opportunities, and enhance the value chain within the continent. Chege highlighted the alignment of the Trade Connect initiative with the vision of the African Continental Free Trade Area (AFCFTA) in establishing a seamless trade area across the continent. By addressing key elements such as logistics, financing, and market access, Trade Connect enables SMEs to leverage the AFCFTA by benefiting from reduced tariffs and simplified regulations. The objective of moving 1,000 containers in the next 12 months serves as a practical demonstration of the potential of the AFCFTA and its role in advancing inter-country trade. In planning for the target of 1,000 containers, Real Resources Africa conducted market research across multiple countries to identify demand and supply dynamics. Through this exercise, they discovered the presence of untapped opportunities where products in high demand in specific African markets were manufactured by other African countries, showcasing a potential for cross-border trade. Collaborating with various players within the trading ecosystem, including trade financiers, logistic providers, customs agencies, and regulatory bodies, the initiative aims to streamline the export process and facilitate smoother trade mechanisms. The initiative does not intend to limit its reach to just a few countries but rather looks to expand across numerous African markets by leveraging partnerships and collaborations under the AFCFTA. By identifying surplus and deficit products in different regions, Real Resources Africa aims to establish a robust supply chain network that can efficiently meet market demands and promote cross-border commerce within the AFCFTA member states. Highlighting the critical role of logistics in the successful implementation of the AFCFTA, Chege emphasized the need for countries to enhance their export readiness and address existing infrastructure gaps. Real Resources Africa is engaging in collaborative efforts with partners in export markets to simplify trade processes and build the necessary infrastructure to support increased trade volumes. By creating demand through increased trade activities, the initiative seeks to spur investments in infrastructure that will further facilitate inter-country trade. In addressing the challenges faced by SMEs in accessing financing and trade guarantees, Chege emphasized the importance of standardizing regulations, investing in infrastructure development, and providing financial incentives to support SME participation in trade activities. By harmonizing policies, maintaining transport and logistics networks, and offering financial support mechanisms such as grants and guarantees, governments can create a more conducive environment for SMEs to engage in cross-border trade. In conclusion, the Trade Connect initiative led by Real Resources Africa is actively collaborating with governments to overcome obstacles and foster a more inclusive and accessible trade environment across Africa. By driving intra-Africa trade, enhancing export opportunities, and streamlining logistics, the initiative is poised to contribute significantly to the growth and development of the continent's trade landscape.