In this special interview, Adebayo Abubakar speaks with customs and trade expert  Veronica Maoresa Zuze. She bares her mind on what Africa needs to do to ease most, if not all, of the customs-related barriers to the African Continental Free Trade Area (AfCFTA).

Adebayo Abubakar: Could you please give a brief instruction of yourself?

Veronica M. Zuze: My name is Veronica Maoresa Zuze. I have over 27-year experience in customs and trade having risen through the ranks in a [Zimbabwean] Customs Authority. I have a passion for regional integration and trade facilitation. I have been involved in RoO [Rules of Origin] negotiations for the EU-ESA-EPA and the AfCFTA. I have facilitated a number of webinars on RoO. I am also the publisher of the Linkedin Newsletter “EMPOWER ”

Adebayo Abubakar: Stakeholders have been talking about the need for Africa to have a unified Customs Union, like that of the European Customs Union, for there to smooth sail the AfCFTA; what does that mean?

Veronica M. Zuze: Let’s start by understanding the various regional trade agreements, and what they mean. Typically, there are four types of regional trade agreements.

• Free Trade Area (FTA)- member states eliminate tariffs (customs duties) and Trade barriers but each maintains foreign trade policy.
• Customs Union(CU) –members eliminate tariffs and create an external trade regime meaning they agree on how they will trade with none members.
• Common Market -members include trade and free movement of all factors of production such as labour in the agreement.
• Economic Union-members also agree to coordinate on all economic policies. 

As seen above, a Customs Union (CU) adopts a common external tariff, meaning that no matter which member state they are imported into, commodities coming from outside the union are subject to the same tariff.

Since its founding in 1968, the European Customs Union has undoubtedly endured despite its difficulties. Such an agreement often lowers trade barriers among participants and facilitates the movement of commodities inside and beyond the region, thereby boosting intra-African trade. A Customs Union would have several advantages for Africa over a non-unified arrangement, including more intra-African trade, the removal of trade barriers as previously mentioned, and improved competition among manufacturers, which would help consumers in terms of costs and quality. A similar setup tends to draw investment, thereby boosting the local economies. Despite the anticipated substantial benefits, there are a number of obstacles that would need to be addressed in order to create a “Customs Union” for Africa. African nations will have to give up individualism and embrace politico-economic cooperation, which calls for strong political will on the part of the political leadership of each of the countries. Since the majority of members states rely on tariffs as a source of revenue, harmonizing the tariff regimes and deciding on a unified external tariff will be difficult. It is difficult for most members to provide the good infrastructure needed to facilitate trade. Setting up the infrastructure to support transiting of products across African nations is necessary for a CU. If the arrangement is to be successful, African countries  need to address the security concerns of its members first.

Adebayo Abubakar: How important do you think an African Customs Union is to AfCFTA, mirrored after the International Convention on the Simplification and Harmonization of Customs procedures (Kyoto Convention)?

Veronica M. Zuze: The Kyoto Convention sets out standards for harmonisation and simplification of customs procedures. If the AfCFTA were to be mirrored after the Kyoto Convention, there would be harmonisation and simplification of Customs procedures throughout the continent making it easy for businesses to make investment decisions. The major hindrances to intra-African Trade are regulations, different tariff regimes, and lack of harmonised customs procedures among member states. It is therefore quite critical for the African continent’s AfCFTA to make easier movement of goods across the continent through a Customs Union, thus boosting intra-African trade.

Adebayo Abubakar: Do you think, like the Southern African Customs Union (SACU), something similar covering Africa can be replicated, and it will endure like SACU (which is the oldest Customs Union in the world) has?

Veronica M. Zuze: SACU has been in existence for over 100 years and has successfully reduced trade barriers and boosted trade among member states namely South Africa, Botswana, Namibia, Eswatini, and Lesotho. Given the political and economic diversity of African countries, there are numerous challenges to be overcome before such an arrangement can be established, some of which were alluded to earlier on, such as the elimination of Tariffs, harmonisation and simplification of Customs procedures, and addressing security concerns among citizenry. Personally, I believe despite the challenges, an African CU brings great benefits to members if correctly implemented. A CU could be successful because most African states agree that trade integration is critical for economic development and most of the AfCFTA building blocks are already working towards trade integration. Efforts already underway to improve infrastructure will bear fruits through easier and cost-effective trade among members, especially the landlocked nations. A growing middle class and youthful population in Africa could create a larger market for goods and services, however, most African countries are heavily dependent on the informal sector, and opening up markets could pose serious challenges in terms of competition. I am convinced that replicating the Southern African Customs Union across Africa is possible with the commitment of all pillars of the political economies.

Adebayo Abubakar: What is your impression about the level of Youths and women’s involvement in trade in Africa, as far as AfCFTA is concerned?

Veronica M. Zuze: Given the huge proportion of women and youths in the African population, the participation of youth and women in trade is now quite low. This is because they are frequently excluded from cross-border informal trade, the Africa Union Commission estimates that women make up around 20% of formal trade in Africa. This is a result of difficulties with funding, knowledge gaps, gender and cultural stereotypes, and unpaid caregiving. The AfCFTA protocol on women and youth in trade has the ability to improve women and youth involvement while addressing their problems. The youth are currently becoming comparatively more involved in research, the online exchange of goods and services, and the digital economy. The role of women and young people will expand with fewer trade barriers, improved knowledge and information sharing, and the availability of financing options.

Adebayo Abubakar: With issues like RoO, language, and other barriers to trade, do you see African women and Youths as having what it takes to be active participants in AfCFTA?

Veronica M. Zuze: I am convinced, women and youths do have what it takes to be active participants in the AfCFTA project, despite the challenges of RoO, language, and other barriers to trade.  Rules of Origin are the keys to unlocking preferential tariffs in any regional trade agreement, including the AfCFTA. Although RoO can be complex and difficult to implement, African women and youth are resilient and focused on overcoming any obstacle. Training and simplification of RoO would ensure full inclusion. The use of Simplified Trade Regimes (STR) would be beneficial so that no one is left behind because women often deal in a limited number of goods that can be accommodated by STRs. Language: Given the level of education of most African female traders, language is a significant barrier to trading. Translation of AfCFTA information and material into local languages and the use of digital platforms to communicate and trade could help overcome language barriers. There are several impediments to trade for women, such as infrastructure, financial [access to credit facilities], and market access, but projects are being launched on a daily basis to provide the resources needed for women to engage. Even the women themselves are coming up with innovative ways to survive, for example, the women in Kenya have table banking loans for financing. Women are determined and committed to the AfCFTA agenda.

Adebayo Abubakar: Due to some sociological factors, do you think there should be preferential treatment for African youths, and women in trade, for effective participation?

Veronica M. Zuze: Given the sociological factors limiting the participation of women and youth in trade, I think there is a need for preferential treatment for African women and youths. Women and youths are often marginalised through lack of education and training in trade matters such as Customs procedures and regulations, and gender discrimination due to cultural and religious beliefs that confine women to caregiving work at home. Ideally, preferential treatment will provide youths and women the resources and opportunities they need to excel in trade, although this should not be seen as a way to give them an unfair advantage but level the playing field.

Adebayo Abubakar: With your level of interaction and experience with EU-ESA-EPA (kindly state the full meaning of these acronyms), what would be your advice to the African heads of state and government, on eliminating trade barriers among AfCFTA members?

Veronica M. Zuze: Let me begin by explaining the acronym European Union Economic Partnership Agreement with Eastern and Southern Africa (EU ESA EPA). This is a trade agreement between the EU and the countries of Eastern and Southern Africa, including Zimbabwe, Mauritius, Seychelles, and Madagascar. With it, they all agreed to a reciprocal preferential trade pact that included the elimination of tariffs and trade obstacles, among other things. Africa belongs to us and no one is coming to develop it for us and rescue us from poverty, therefore we need to fully commit to the AfCFTA goals including boosting intra-Africa trade. The longer we take to implement its provision the longer our communities stay in poverty. Only us can address the challenges we face such as trade barriers and poor infrastructure. disjointed customs procedures, knowledge sharing, training, technological development, including the use of digital platforms, and utilisation of  the Pan African Payment and Settlement System [PAPSS]. Such efforts will support our businesses and boost intra-African trade. Also, Heads of Governments should encourage citizens to do away with a high appetite for non-African goods which are erroneously seen as superior. There is also need to have national task forces that are committed to developing strategies for the implementation of the AfCFTA and domestication of laws to ensure the attainment of set implementation deadlines.

Adebayo Abubakar: From your vantage position, as highlighted in your profile, what obstacle have you identified, but is not discernible to those in charge of AfCFTA?

Lack of political will among  important pillars of African economies as a result of a misunderstanding of what the AfCFTA wants to achieve. Some governments are unwilling to give up their sovereignty by allowing international competition. Most policies are still protectionist and focused on “them-and-us”. “Theirs-and-ours” attitudes make it harder to reach an agreement.  There is a pervasive dearth of awareness of international trade among politicians, who are typically ministers and, in certain cases, policymakers. Economists can advise after conducting research and examining economic issues, but it is difficult to achieve much if policymakers are not qualified to appreciate the impact of their international trade and foreign policies.

Also, because of a lack of infrastructure, moving commodities across the continent is more expensive than moving goods from across continents. For example, there are few direct flights connecting African countries, with some flights having to travel beyond the continent before returning to Africa. Non-Tariff Barriers (NTB) create difficulties, such as delays at ports of transit for consignments, which result in expenses for businesses. The AfCFTA faces challenges from NTBs,Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary measures (SPS). These barriers  make it difficult for businesses to comply with the requirements of different countries, which could also discourage trade. The AfCFTA has the potential to be a major driver of economic growth and development in Africa, but it will need to be implemented effectively in order to achieve its full potential.

Adebayo Abubakar: Thank you for your time!

Adebayo Abubakar is a Nigerian journalist. You can reach him via email: marxbayour@gmail.com

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