The co-Founder and Managing Director of Gateway Synergy in South Africa, Tarisai Moffat, has noted that Africa possesses the talent and know-how to overcome its numerous trade and associated business challenges.
Tarisai, who is currently a Mandela Washington Fellow, was speaking at the 2023 Mandela Washington Summit at the Jackson State University, USA. Tarisai argued that fragmented trade processes across African borders are affecting business growth because they escalate the cost of goods, making them unaffordable for both consumers and businesses. She, however, argued that the African Continental Free Trade Agreement (AfCFTA) has made remarkable strides, with all 54 African countries signing on, opening access to an expanded African market and potentially helping to overcome the well-chronicled barriers to trade in Africa.
Tarisai argued finally, that young people in Africa should seize the opportunity to make their voices heard and actively participate in the execution of AfCFTA. She argued that for the youth of Africa, it was their collective responsibility to create a brighter future for themselves and their children by advocating for the benefits of free trade and educating various stakeholders, including politicians, farmers, traders, and all those we encounter, about the significance of streamlining trade processes.
The full text of Tarisai’s speech is reproduced below:
Good evening distinguished guests and Mandela Washington Fellows! Meet Ebrima, our Gambian Fellow with the largest poultry farm in the country. During our site visits to Sanderson Farms in Mississippi, where they process 1.4 million chickens weekly, Ebrima was inspired to scale his production to match their success. Despite Africa’s vast potential with 1.4 billion people and 3.4 trillion in purchasing power, Ebrima’s dreams of scalability are hindered by inter-trade law restrictions and transportation issues – confining him to a Gambian population of 2.7 million people. As 700 young leaders in America, we have received leadership training; but are we truly ready to drive change when inter-trade restrictions still hinder progress in Africa?
Have a look at this map – travelling from Ethiopia to Nigeria or Zambia to Ghana takes a staggering number of days, crossing multiple borders with each one requiring customs duties, value-added taxes, surcharges, clearances, multiple licenses and certificates. The fragmented trade processes across African borders are affecting business growth because they escalate the costs of goods, making them unaffordable for both consumers and businesses. For instance, a US$150,000 invoice may incur an additional US$100,000 in transportation costs, severely exceeding market norms and adversely affecting both consumers and producers. If Spain can trade freely with Italy, why should South Africa not be able to trade freely with Cameroon?
A vision for a strong African economy is to have a super responsive and flexible trade operation that would allow business leaders like Ebrima to scale and be successful.
The African Continental Free Trade Agreement (AfCFTA) has made remarkable strides, with all 54 African countries signing on, opening access to an expanded African market. Key initiatives include the PAPSS, a cloud-based payment system enabling intra-African trade in local currencies. Last month, heads of state met in Nairobi, and framed out the flagship of free trade, demonstrating a commitment to unlocking Africa’s potential and fostering trade growth.
However, the main flagship projects will not be completed until 2063 – this adorable picture features a 2-year-old girl who holds a special place in my heart because I am a mother; I have a 4-year-old girl and a 2 year-old boy. By 2063, my daughter will be 45 years old and my son will be 43 years old. Our focus is not on a distant vision for the future, when our children are 40 years old. Instead, we aim to drive tangible change within our generation and positively impact our children’s lives by the time they reach high school.
Africa possesses the talent and know-how. In this room we have engineers, product designers, creatives and innovators. Africa has over US$100billion worth of minerals and real estate. However, we face challenges in transportation, access to cutting-edge technologies, and intellectual property. We need to fast-track this free trade through private-public partnerships with the United States and other members of the United Nations. This will result in route to market time reducing by 48 hours from 6 weeks, and a 50 percent reduction in transport fees – which is good business practice.
As young leaders of Africa, let us seize the opportunity to make our voices heard and actively participate in the execution of AfCFTA. By sharing the knowledge, technologies and infrastructure advancements we have gained here in the USA, we can accelerate the implementation of AfCFTA. Our collective responsibility is to create a brighter future for ourselves and our children by advocating for the benefits of free trade and educating various stakeholders, including politicians, farmers, traders, and all those we encounter, about the significance of streamlining trade processes. Together, we can shape a shared future for Africa—one where our entrepreneurs thrive, our economies flourish, and our continent fulfils its boundless potential.
My name is Tarisai Moffat. I was proudly placed at Jackson State University and own a marketing agency in South Africa. Join hands with me to create an Africa that thrives through free trade and shared prosperity. Let’s create the Africa we want. Thank you!
