1 The Futures Report The Futures Report MAKING THE AfCFTA WORK FOR WOMEN AND YOUTH 2 The Futures Report Contents 3 Acknowledgments 4 Executive summary 6 Forewords 10 1. The AfCFTA at a Glance 16 2. Implementing the African Continental Free Trade Area during the 2020s 30 3. Unlocking and Scaling Innovation, Enterprise and Growth Through the AfCFTA Protocol On Trade in Services 30 3.1. The AfCFTA Protocol on Trade in Services: The making of an African services market Case stories 34 3.2. The AfCFTA: Creating a prosperous Africa in good health 38 3.3. Flipping the Board: digital platforms for learning in the continental market 40 3.4. Creatively connecting Africa 44 3.5. Soaring high above the skies with remote sensing technology 48 4. Unlocking and Scaling Innovation, Enterprise and Growth Through The AfCFTA Protocol On Trade In Goods 48 4.1. Unleashing Africa’s productive capacities and structural economic transformation through the AfCFTA Protocol on Trade in Goods Case stories 50 4.2. Connecting Africa’s food systems, from farm to table 54 4.3. Harnessing biodiversity for sustainable agro-processing 58 4.4. Crafting the shoes, pounding these African streets 62 5. Realizing the Promise of the AfCFTA for Women and Youth 62 5.1. Gender Equality and Opportunities for Youth in the AfCFTA Case stories 64 5.2. The power of the AfCFTA and the promise of women and youth 68 5.3. Maximizing the benefits of the AfCFTA for young people 70 5.4. The opportunities of the African Continental Free Trade Area (AfCFTA) and the strategy for creating access to new markets for women and youth 74 5.5. Maximizing AfCFTA private sector opportunities by creating enabling business environments 78 5.6. Trade-facilitating Government Entities: The key to successful implementation of the African Continental Free Trade Agreement 84 6. AfCFTA Policy Toolbox 84 6.1. The AfCFTA as an instrument of Africa’s transformation: A prospective retrospection 88 6.2. Women, trade and COVID-19: Making the AfCFTA work for women in trade in a post-COVID-19 world 92 6.3. Unleashing the informal sector in the AfCFTA 98 6.4. UNDP Accelerator Labs supporting SMEs to produce goods for the African market 100 Conclusion: UNDP’s Support to Implementation of the AfCFTA 3 The Futures Report Acknowledgments The United Nations Development Programme (UNDP) would like to thank all contributors who provided case stories, reflections and insights. This report was prepared under the overall guidance of Ahunna Eziakonwa, Assistant Secretary General, Assistant Administrator and Director of the Regional Bureau for Africa. Ify Ogo served as editor, Joy Kategekwa, Luisa Bernal, Angela Lusigi and Jide Okeke served as the internal strategy and review team. Michelle Muita, Betelihem Teklu, Monica Bonfanti and Lauren Rooney provided support for communications. Thanks to Barbara Hall and Dawnielle Jacobson for their editorial support, to Amandine Gillet and Adla Kosseim for their translation services and to Peter Ørntoft for the design of the report. © 2020 4 The Futures Report Executive summary The Agreement establishing the African types of goods and services underpins efforts to Continental Free Trade Area (AfCFTA) is a legal achieve the Sustainable Development Goals, and instrument – an agreement among the African the Agenda 2063 of the African Union cannot be Union Member States to create a single market. implemented without the AfCFTA. But the AfCFTA represents much more. On the one hand, it is a significant milestone on the In anticipation of trading under AfCFTA terms in journey to African integration and development. 2021, the ‘Futures Report: Making the AfCFTA On the other hand, it is a catalyst for new ways of Work for Women and Youth’ is a narrative about doing business, producing, working and trading the promise of the AfCFTA as told through the within Africa and with the rest of the world. voices of Africa’s producers, traders, policy officials and regulators. Under the Agreement, This report demonstrates that, beyond the African Union Member States, now also AfCFTA numbers and negotiations, the realization of State parties, explicitly seek to achieve gender this promise will depend on decisive actions equality and enhance the export capacity of and the collective efforts of the African people. women and youth. Concrete policy measures and investments are needed, in particular to ensure that women This report presents opportunities in the AfCFTA, and youth, who account for the majority of the as pursued by women and youth entrepreneurs population, business owners and workforce, and business owners, and discusses ongoing can be better integrated into the value chains, efforts by Governments and development jobs and opportunities stemming from the institutions to ensure that these groups derive AfCFTA. maximum benefit from the Agreement. Policy actions to implement the protocols already in The AfCFTA is also central to recovering from force are also presented to enable the AfCFTA to the coronavirus disease (COVID-19) pandemic work to the greatest advantage of Africa’s women and enhancing Africa’s resilience. Trade of all and youth. 5 The Futures Report SKG Drone Training. Ready to Fly. Credit: Francis Owusu 6 The Futures Report Ahunna Eziakonwa Assistant Secretary-General, Assistant Administrator and Director, UNDP Regional Bureau Forewords for Africa We dream of an Africa that is self-sufficient. At a the AfCFTA could be one good way to bring back time when the coronavirus disease (COVID-19) perspective, positing the prospect of recovery in pokes significant holes in Africa’s capacity to yield home-grown solutions by giving exports a boost its promise, I am energized by the potential of the and, in doing so, empowering all participants in African Continental Free Trade Area (AfCFTA) to cross-border trade, especially women and youth. empower Africans to take control of their lives. The United Nations Development Programme This report focuses on women and youth because (UNDP), with its presence across the continent of of the significant transformational impact they Africa, is pleased to unveil its inaugural ‘Futures hold for defeating poverty. Over 70 percent of Report: Making the AfCFTA Work for Women cross-border traders, especially those engaged and Youth’. This report builds on the important in informal trade, are women. Understanding contribution of several partners that have made their needs and giving them a platform to speak the case for the economic benefits of the AfCFTA. is incredibly important. The youth are Africa’s In this Futures Report, we unveil a new approach largest composite of human capital. As the in which exporters and policy officials in Africa youngest continent, Africa needs to invest in lead the conversation. We asked them a simple ensuring that its youth have credible pathways to central question: why does the AfCFTA matter engage in productive activities so that they may to you, and what are you doing to maximize reap the promise of their dreams and become opportunities within the continental market? architects of their own prosperity. This simple question has triggered a wealth of As an African woman, I am particularly hopeful case stories, which leave one hopeful that the that an effective implementation of this future of the continent could indeed be brighter Agreement will advance the dream of African with the right policy support, thanks to the zeal of integration—one that our forefathers committed Africa’s exporters. From shoe manufacturers to to, and for good reason. An integrated Africa will educationists, from film-makers to producers of create a single market of 1.2 billion people, each poultry feed, from players in the pharmaceutical of these with needs and priorities, translating market, to farm-to-table agriculture traders, from into opportunities for production and supply of a minister responsible for trade to senior policy a new ‘Made in Africa’ transformation. This is specialists leading the implementation of the particularly important at a time when the world Agreement, this report continues on the Africa has heard for far too long the challenges of low Innovates trajectory to showcase African voices in volume and low-value exports. The AfCFTA gives telling their story and ensuring that they hold the Africa’s people the opportunity for seamless mantle for homegrown solutions. trade, value addition and diversification of the product range (both goods and services); a closer UNDP will continue to provide the space for interaction between Africa’s natural resource these stories to thrive, and is committed to going endowments and much needed industrialization; beyond the story, by working with partners on the and the structural transformation of the African ground to ensure support for women and youth economy. This has importance beyond the export-led enterprises. We will keep track of these traditional narrative of a rise in gross domestic stories and more, as part of our efforts to boost products. It is critically important for human intra-African trade on the ground. development, in allowing more opportunities for the right investments through which the AfCFTA I am grateful to all the outstanding women and can change the game – triggering a production youth and all the contributors who have worked revolution across Africa, creating jobs, rising with my team in putting together this Report. I incomes and lifting more and more people out of wish you all the best and hope to see the fruits poverty. of your labour as we work together to create the Africa We Want. At a time when COVID-19 has challenged much of what we know about development models, 7 The Futures Report His Excellency, Wamkele Mene Secretary General, AfCFTA Secretariat Aspirations of over half a century are now being will lead to stable business growth, which can realized through the imminent start of trading contribute to the revenue bases of African under the preferential terms of the African governments.