Pan-African Manufacturers Association (PAMA) has said that African Continental Free Trade Area, AfCFTA, can only realize its full potential with strategic interventions that support the growth and active participation of Africa’s Small and Medium-scale Industries (SMIs).
PAMA recently revealed that SMIs are the foundation of several economies, including high and low-income countries, as they mostly account for a large chunk of employment and public revenue, which are very crucial when it comes to aiding inclusive growth, reducing poverty, and stabilizing the economy.
Titled “African Continental Free Trade Area: Impact and Opportunities Assessment for Africa’s Small and Medium-scale Industries (SMIs),” the report read that SMIs actually account for about 80 – 90% of employment in Africa, and the pledges of these industries mainly align with the goals that drive the AfCFTA framework.
“These promises and outcomes of SMIs align with the shared aspirations that drive the AfCFTA framework, which aim to establish a single continental market to promote Africa’s economic stability and prosperity,” it read.
Established 8 years ago, PAMA functions as the voice of manufacturers across Africa, and it has always maintained that it is the duty of the association to be at the forefront of promoting the continent’s industrial transformation under the African Union’s Agenda 2063.
Its main role is to represent, safeguard and promote the interests of all manufacturers across different African nations via relevant advocacy and collaboration with key stakeholders/players in the manufacturing sector.
The report further emphasised the need for a level playing field to reduce the risks of unfair competition, especially from bigger firms or industries. “Strong regulatory frameworks and enforcement mechanisms are essential to protect the interests of SMIs and promote fair trade practices,” it read.
While the report mainly details recommendations and quality policy implementation strategies, it also stresses how SMIs should be prioritised enough to thrive in the AfCFTA environment and contribute immensely to the continent’s economic integration and success.
It concluded by saying AfCFTA holds massive power when it comes to aiding economic transformation and industrial growth in Africa, but everything depends on the full participation and integration of the SMIs.
“Despite challenges, targeted interventions and collaborative efforts among policymakers, regional and development institutions, inter-governmental bodies, and industry stakeholders can help unlock the full benefits of a single market in Africa for the continent’s industrial transformation,” it added.
