Business

Draconian Non Tarrif Barriers Linked to High Food Prices in Africa

The continued failure for African countries to make it easy for intra-trade results into costly food prices.

The 14th African Union High Level Private Sector Forum held in Nairobi last week pushed for removal of stringent legislation that makes it impossible for importing and exporting among African states.

“To unlock the full benefits of the dynamic and fast-growing services sector within the continent, there is a need for regulatory reforms to eliminate barriers faced by service providers and enhance the productive and export capacity of African services firms,” said EAC Secretary General Hon. (Dr.) Peter Mathuki.

African Union Members States have been called upon to adopt policies to encourage intra-African trade in food production by among other things removing Non-tariff Barriers (NTBs) that currently make imports from outside the continent costly compared to locally produced food.

AU Member States were further urged to invest in irrigation agriculture by moving away from the reliance on rain-fed agriculture.

African countries were called upon to adopt policies that motivate the youth to take part in agriculture to ensure increased production and reduce food insecurity.

The forum further encouraged AU Member States to build resilient food systems which are climate resilient by employing technologies which promote investments in technologies that also address post-harvest losses.

The three-day (10th – 12th July) forum vouched for Public-Private-Partnerships to promote partnerships for ensuring sustainable financing and management of national and regional agro-industrial parks and regional value chains.

Member States were encouraged to align their agribusiness priorities in line with the Malabo and Maputo declarations and the Comprehensive African Agriculture Development Programme (CAADP).

The forum resolved that investments in transport and logistics should be supported to ensure agribusinesses are scaled up and sustainable to ensure food security in the African continent.

Meanwhile, on the role of digital trade and its implications for African economies, AU Member States were asked to adopt the development of electronic payments and settlement systems and harmonise user fees on mobile money payments.

The forum called upon Member States to promote the uptake of digital literacy and other critical skills and business to people networks.

The forum called for a mindset change on products made in Africa as well as develop and harmonise digital portals in order to improve content and quality of products at both regional and continental levels.

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