by HAPPY MULOLANI
FOLLOWING calls by the African Union to enhance trade in Regional Economic Communities (RECs) through the implementation of Common African Agro Parks Programme (CAAPs), Zimbabwe and Zambia signed a trade agreement in 2021 valued over US$12million, which is about to bear fruit.
Speaking in Lusaka during the just ended inaugural coordination meeting of Regional Economic Communities (RECs) for the implementation of the Common African Agro-Parks programme, Ministry of Industry and Commerce, Chief Director Florence Makombe from Zimbabwe, explained that the trade agreement between Zimbabwe and Zambia rides on the already existing bilateral trade, which has culminated in a series of meetings and talks between the two countries aimed at actualizing the agro park to boost food production and trade.
Ms. Makombe disclosed that the agriculture industrial park between the two countries includes the following value chains: Soybean, dairy, wheat, horticulture, maize and fisheries.
Ms. Florence Makombe, Chief Director of Ministry of Industry and Commerce
“There has been progress made on the Zimbabwe and Zambia trade agreement which is expected to blossom in terms of food production. Now, there is need to adjust from the last meeting held in Harare recently, which looked at the legal framework,” She revealed.
The Director of the Ministry of Commerce, Trade, and Industry of Zambia, Musokotwane Sichizuwe said Zambia has the capacity in terms of the agriculture sector given also the favorable weather.
Mr. Sichizuwe says once a feasibility study is conducted in Zambia, it will help unpack most of the criteria requirements.
“Zambia has prioritized farm blocks. Initially, the focus was on special economic zones but now extended to farm blocks. It aligns well given that we are trying to do some of these things at a regional level,” he disclosed.
Mr. Brian Ngandu from Ministry of Agriculture of Zambia said that Zambia and Zimbabwe have enjoyed a long-lasting trade relationship. This is advantageous to both countries as their identified trade agreement is likely to stimulate increased trade.
The Director of the Ministry of Commerce, Trade, and Industry of Zambia, Musokotwane Sichizuwe (left) and Mr. Brian Ngandu, Ministry of Agriculture of Zambia (right)
Although, Zambia and Zimbabwe may not have the same land polices, the implication is that both countries may need to reform policies to align with the goals of CAAPs and to also strengthen this agro park initiative to attract and unlock business opportunities in order to enhance trade between the two countries.
It is clear that CAAPs are critical if trade is to be enhanced intra and regionally in a bid to make the African continent food secure and also produce surplus for export.
Principal Advisor, Value chains, Office of the Secretary General Themba Khumalo explained that CAAPs involves agreed actions between two countries to identify trade opportunities.
“Our target is to have excess food for trade and where there are domestic projects will be supported, CAAPs aims to promote regional integration and trade,” Mr Khumalo said.
r. Themba Khumalo, Principal Advisor, Value chains, Office of the Secretary General, AfCFTA
To catalyze CAAPs, countries need to justify their projects within their Regional Economic Communities (REC) for the implementation of the Common African Agro-Parks programme. Once countries identify and concretize their projects, they need to sign agreements and trade. For these CAAPs to be viable and translate into tangible results, there is need to ensure private sector investment.
Mr Khumalo said, “when pursuing these investments, there will be need for private sector players to be able to present their projects and mobilize resources to actualize trade agreements”.
He clarifies whatever projects exist in countries aside the identified CAAPs continues, although it is better to enshrine them in the regional investment plans for purposes of recognition as a CAAPs regional integration plan.
“We need to radically change the way we work to actualize and achieve the goals of the CAAPs,” Mr. Khumalo said.
He advised that countries need to look at their own domestic interests, what is existing and how best it can be scaled up. This should be coupled with a commitment to create an enabling policy environment and trade among others so as to avoid any barriers between countries wanting to promote trade in their RECs.
Mr Khumalo explained that for the CAAPs to be recognized and supported, certain criteria need to be met as spelled out in the Abuja declaration.
The Abuja declaration criteria outlines some of the critical elements of setting up a CAAPs within a RECs. Among them, is taking into account the nature of strategic importance in relation to integration, economic growth and food security. Further, there is need to ascertain what is on the ground within the context of feasibility of projects, as there must be a base to engage some of the partners for a pre-feasibility.
This means when looking at most entities, there will be need for feasibility study, which will entail the community having basic information to make decisions and demonstrate the ability to promote regional boosting. Overall, there is need to look at whether countries are able to commit from a policy point of view as a country, outside investor zones to enable the private sector to make informed decisions. It is key for countries to critically look at their comparative advantages and harmonize their investments with financial commitment towards agreed value chains.
Common African Agro-Parks (CAAPs) are vehicles aimed at driving cross border projects to leverage on initiatives which focus on priority or strategic commodities. It is envisioned this approach will spur economic development and transformation in Africa, as espoused within the framework of the African Union (AU) Agenda 2063. – National Agricultural Information Service
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