East African firms trained on AfCFTA trade rules

East African business membership organisations are being equipped with practical skills to help companies navigate the African Continental Free Trade Area’s Rules of Origin, tariff preferences and documentation requirements, as efforts intensify to increase intra-African trade and strengthen regional value chains.

The initiative was spearheaded by the East African Business Council (EABC), with support from the GIZ African Union (AU) AfCFTA Programme II, during a three-day Regional Training of Trainers workshop in Kampala, Uganda.

The workshop brought together 30 representatives from national apex bodies, manufacturers’ associations and sectoral business membership organisations across the East African Community region.

Businesses urged to prepare

Representing the Permanent Secretary at Uganda’s Ministry of Trade, Industry and Cooperatives, Okot Okello Richard urged businesses to build a strong practical understanding of the AfCFTA implementation framework.

He said knowledge of the Rules of Origin is particularly important for companies seeking preferential treatment when exporting goods under the continental trade agreement.

The Rules of Origin determine whether a product qualifies as originating from an AfCFTA member state and can therefore benefit from preferential tariff treatment.

Okello also called on business membership organisations to provide practical support to companies looking to expand their trade under the agreement.

Africa’s untapped market

The AfCFTA brings together a continental market of about 1.3 billion people and a combined gross domestic product of approximately $3.4 trillion.

However, intra-African trade remains relatively low, accounting for about 16% to 18% of Africa’s total trade.

The figures highlight the scale of the opportunity available to African businesses if barriers to cross-border commerce can be addressed and companies gain better access to preferential trade arrangements.

Lamech Wesonga, economic and policy adviser at GIZ, said trade and regional integration can play an important role in creating business opportunities, improving livelihoods and supporting economic transformation.

Training business advisers

The training was designed to create a network of business advisers capable of helping companies understand and use AfCFTA instruments.

Participants were trained on Rules of Origin, tariff preferences and the documentation needed to demonstrate eligibility for preferential market access.

Business membership organisations are expected to cascade the knowledge gained during the workshop to their wider private-sector networks.

This approach is intended to reach more companies while giving firms access to practical guidance through organisations that already work closely with businesses in different sectors.

Reducing compliance risks

Better knowledge of AfCFTA requirements could help companies reduce the risks associated with incorrect documentation or failure to meet Rules of Origin requirements.

The trained organisations will also help firms assess regional sourcing opportunities and identify markets where preferential tariffs could improve their competitiveness.

For manufacturers, the information can support decisions on where to source raw materials and other inputs, while exporters can use it to assess the requirements for entering new African markets.

The training could also help businesses make more informed decisions on production, pricing and investment.

Unlocking business opportunities

Representing EABC Executive Director Gift Gabriel Mbuya, Research and Policy Officer for Trade in Goods, said the AfCFTA provides businesses with opportunities to expand markets, increase production, develop regional value chains, attract investment and improve competitiveness.

He stressed that the agreement’s potential can only translate into higher trade volumes if businesses have the knowledge and capacity to use its instruments effectively.

For many companies, understanding the rules is as important as having access to the market itself. Without the ability to determine whether goods qualify for preferential treatment and complete the required documentation, businesses may struggle to take advantage of lower tariffs.

Building regional value chains

Through the Training of Trainers model, participating organisations will continue sharing the knowledge and tools acquired with businesses across the EAC region.

The broader goal is to move companies from simply knowing about the AfCFTA to actively using its preferential market access.

Greater use of the agreement could support regional sourcing, increase production links between African businesses and encourage investment in industries capable of serving continental markets.

For East African businesses, stronger understanding of AfCFTA rules could ultimately help open new markets, improve competitiveness and contribute to higher levels of intra-African trade.