The African Continental Free Trade Area (AfCFTA), launched in 2018, is the largest free trade agreement globally, encompassing 54 of Africa’s 55 nations and creating a unified market of 1.3 billion people. The agreement seeks to boost economic growth, increase trade within Africa, and attract investment by reducing trade barriers. Kenya, a major player in Africa’s agricultural exports, aims to take advantage of the AfCFTA to grow its tea trade and improve the livelihoods of its farmers.
CNN’s Victoria Rubadiri recently traveled to Kericho, one of Kenya’s top tea-producing regions, to examine how the tea industry can benefit from the AfCFTA. During her visit, she spoke with Antony Kinara Margia, a seasoned tea farmer, who expressed optimism that the agreement could open up new opportunities for Kenyan farmers.
“Better returns for farmers could come from adding value to the tea and accessing better markets. Farmers should not limit themselves to one market; they should explore other options for better prices. Currently, the prices we get are not favorable,” Margia shared.
His perspective highlights the need for diversifying trade beyond traditional markets. By reaching new African markets, tea producers could achieve better returns, boosting the overall sustainability of the sector.
Kenya is one of seven countries chosen to spearhead tariff-free trade under AfCFTA’s Guided Trade Initiative. However, despite the program’s potential, logistical hurdles persist.
Lindah Oluoch, CEO of the Kenya Tea Growers Association, discussed the challenges of early implementation.
“The tea consignment sent under the Guided Trade Initiative took about six months to reach Ghana. If we had better road or rail networks, especially an electric train system, it would improve our ability to export more efficiently and develop consumer bases in these markets,” Oluoch noted.
She emphasized the critical need for improved infrastructure to make the free trade agreement a success. Efficient transportation systems, she argued, are essential to cutting trade times, lowering costs, and increasing competitiveness.
“The East African region already has a common connection through tea. As East African countries, we could combine our diplomatic efforts and start conversations with West African partners about creating a trade corridor. If we built the necessary rail systems, a tea order from Lagos could arrive in three days or even 24 hours,” Oluoch added.
Beyond tea, the broader implementation of AfCFTA is gaining momentum, with organizations like TradeMark Africa playing a key role. Erastus Mwencha, Chairman of TradeMark Africa, shared insights on how infrastructure development has facilitated trade within Africa.
“TradeMark has helped build at least 15 one-stop border posts in East Africa, significantly reducing the time it takes to move goods. For instance, transporting goods from Mombasa to Kigali used to take up to a month, but now it takes about six days. This has led to massive savings, as trucks can now make six trips a month instead of just one,” Mwencha explained.
These logistical advancements are crucial for unlocking AfCFTA’s full potential. By streamlining border processes and cutting transit times, African countries can boost the volume of goods traded, driving economic growth and creating new business opportunities.
Mwencha also stressed the importance of the Guided Trade Initiative as a pilot program, saying, “It has shown three key things: that business within the continent is possible, challenges can be systematically addressed, and Africa has a real opportunity to tap into its market potential.”
As Kenya continues to navigate the complexities of the AfCFTA, the focus will remain on improving infrastructure and expanding market access to ensure long-term success for the country’s tea industry. Addressing these challenges could enable Kenyan tea producers to diversify their markets, increase profits, and solidify their standing in the global tea trade.
This article is based on a recent episode of Connecting Africa by CNN’s Victoria Rubadiri.