New trade deal a 'logistics boon'

Namibia's growing logistics sector could benefit if it ratifies the Africa Continental Free Trade Area (AfCFTA) agreement, according to independent analyst Wallie Roux.A total of 44 countries signed the AfCFTA in Kigali, Rwanda last week.Roux felt there is no harm, either immediate or in the long-term, if Namibia ratifies the trade agreement.Under the new agreement, proposed by the African Union (AU), a single continental market for goods and services will be created, while the free movement of business persons and investments will be encouraged. The agreement may also lead to the establishment of a continental customs union, the African Union has said of the ambitious plan.Although Namibia has not ratified the continental free trade agreement, it is part of two regional configurations, namely the Southern African Development Community (SADC) and the Southern African Customs Union (SACU). SADC, as a recognised by the AU Regional Economic Community (REC), already implemented a free trade agreement (FTA) in 2008.Speaking on potential opportunities to be gained, Roux said ratification would bode well for Namibia's growing logistics sector.“An aspect to be taken into account is Namibia's strategic location on the continent and its objective to be a logistical and service hub for Africa south of the equator. Given Namibia's small population and small manufacturing base, this objective is achievable in more than one respect. Hence, should Namibia not ratify the AfCFTA it could lose out on this valuable opportunity,” said Roux.His observation was also that intra-trade had increased considerably between SADC member states.“Despite not all SADC countries participating in the FTA and the implementation of the agreement being repetitively hampered by certain country non-commitments, it has increased intra-regional trade to a certain extent,” said Roux.He explained that the AfCFTA is only a framework agreement; its implementation will be according to the regional integration plans of the AU's eight recognised regional economic communities (RECs). “These RECs are at different stages of regional integration; hence the implementation would not be universal across the 55 AU member states.“Here again, Namibia's allegiance would firstly be SACU, and secondly, SADC. Given its regional trade proximity, the AfCFTA would not hurt any local industries in the short, medium and medium to long-term,” said Roux.The continental agreement, he added, was far from becoming operational.“The AfCFTA is far from fully operational; hence in the meantime a signature to the agreement is only a token. The real nitty-gritty will become apparent with the finalisation of tariff reduction schedules and the eventual implementation,” said Roux.Namibia Trade Forum CEO, Ndiitah Nghipondoka-Robiati, said Namibia had to clear a few legal processes before signing the agreement. “The reason why Namibia did not sign the agreement is because we have not concluded legal domestic processes... Namibia is committed to finalising this process,” she said.“The agreement is going to be debated in the National Assembly, and then once accepted, it becomes binding.“The AfCFTA will only enter into force once 22 countries that are party to the agreement have ratified it. It is hoped that the outstanding issues will be finalised by that time, when Namibia would have signed and ratified the agreement,” Nghipondoka-Robiati said.OGONE TLHAGE

New trade deal a 'logistics boon'

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Namibian Sun 2025-04-28

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New trade deal a 'logistics boon'

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Namibian Sun 2025-04-28

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