Red tape locks Zim out of lucrative US$3,4 trillion continental market

The workshop was organised by the Ministry of Women Affairs, the United Nations Economic Commission for Africa (Uneca), and other partners.

Zimbabwe is staring at the risk of missing out on one of the biggest African economic revolutions — the African Continental Free Trade Area (AfCFTA) — as bureaucratic delays prevent industries from tapping into the world’s largest emerging trade bloc.

This week, the Trade Law Centre (Tralac), Africa’s leading hub for trade policy analysis, warned Harare to expedite the gazetting of AfCFTA tariffs and rules of origin. Without them, local firms remain locked out of a US$3,4 trillion market encompassing more than 1,3 billion people.

“Zimbabwe has made an offer that covers 90% tariff lines, and there is 10% left,” Tralac executive director Trudi Hartzenberg told delegates at a two-day workshop in Harare.

The workshop was organised by the Ministry of Women Affairs, the United Nations Economic Commission for Africa (Uneca), and other partners.

“Currently, tariff lines don’t have rules of origin. Until we agree on the rules of origin, we are not going to make a tariff offer for the goods,” said Hartzenberg.

It means Zimbabwe cannot trade under AfCFTA until government completes legal processes to unlock the regime. However, some experts say Zimbabwe may be taking time to understand the processes first, before putting pen to paper.

“For instance, if you have an exporter from Nigeria who wants to send goods to Zimbabwe under AfCFTA, they cannot because the tariff has not been implemented,” she said.

Seven years after AfCFTA’s establishment in 2018, 54 African states have signed and 48 have ratified the agreement. Implementation has started in varying forms across the continent. But in Zimbabwe, despite repeated commitments, progress has stalled at the level of gazetting schedules and rules.

The trade pact is designed to slash duties on 90% of goods, remove non-tariff barriers, and create a seamless continental market. Uneca estimates AfCFTA could raise intra-African trade by between 15% and 25%, which is equal to between US$50 billion and US$70 billion, by 2040.

Already, countries such as Kenya, Ghana, and Rwanda are actively pushing exports through AfCFTA pilot trading initiatives. Government has previously warned local industries to brace for stiffer competition.

In 2020, then Industry and Commerce minister Sekai Nzenza told industrialists the bloc would “open up immense opportunities”, but also expose local manufacturers to African peers producing cheaper, higher quality goods.

That warning was not idle. The Zimbabwe National Chamber of Commerce (ZNCC) reported early this year the country’s factories were operating at just 52% capacity, weighed down by low domestic demand, foreign exchange distortions, and lack of affordable finance.

ZNCC Mashonaland regional manager Kudakwashe Matare cautioned during the workshop that unless domestic bottlenecks were addressed, Zimbabwean firms would be uncompetitive under AfCFTA.

“We must deal with internal issues first — cost of doing business, infrastructure, local authority charges, and inefficiencies in institutions such as Zimra (Zimbabwe Revenue Authority). These factors weaken our competitiveness not only regionally but also beyond,” Matare said.

Still, he acknowledged some progress, citing government’s ongoing industrial development policy, which seeks to incorporate business concerns.

When AfCFTA formally came into force in May 2019, it was celebrated as a historic leap toward Africa’s economic independence. It is the largest trade bloc in the world in terms of participating countries.

At the time, the African Development Bank noted its potential to integrate markets worth US$3,4 trillion and unlock opportunities for 1,3 billion people. Trade experts hailed it as a “game changer” that could finally transform Africa’s economies from fragmented, small markets into a united continental powerhouse.

The pact represents a chance to wean Africa off dependency on global markets and strengthen intra African supply chains. For Zimbabwe, with its wealth of minerals, fertile land, and skilled labour, AfCFTA was meant to offer a lifeline.

Instead, the years since 2020 have seen the country stuck in an economic quagmire, leaving it unprepared for the opportunities AfCFTA presents.

Intra-African trade accounted for just 16% of Africa’s total trade in 2024, compared to 61,5% in Asia. AfCFTA aims to close this gap. For Zimbabwe, joining fully could mean access to larger markets for manufactured goods, agricultural products, and services, potentially reviving industries long strangled by a small domestic market.

But by delaying the gazetting of tariffs and rules of origin, the country risks losing on first mover advantage.

This week, Zimra said at the workshop it was ready to implement as soon as the responsible ministry acts.

“As for when the tariffs will be gazetted, this will be answered by the Ministry of Foreign Affairs and International Trade. We are ready to implement,” Zimra technical customs manager Rutendo Mapani said.

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