Interview

"We have taken a giant step", says Wamkele Mene, boss of Zlecaf

South African Wamkele Mene, secretary general of Zlecaf, the African Continental Free Trade Area.

© Zlecaf

Text by: Mounia Daoudi Follow

5 mins

He is a difficult man to meet.

All last week, he chained appointments and round tables at the World Economic Forum in Davos, which each year brings together in the Swiss Alps the economic and political elite of the planet.Meeting with the South African Wamkele Mene, Secretary General of Zlecaf, the African Continental Free Trade Area.  

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Wamkele Mene

: Above all, we came to Davos to show that the African Continental Free Trade Area, Zlecaf, is a market with great potential for investment.

It was our main mission.

The second objective, which is just as important, was to present the report on Zlecaf produced in collaboration with the World Economic Forum.

This document is intended to enable international investors to better understand and identify investment opportunities in the Zlecaf market.

We had meetings with leaders of multinationals, global car manufacturers for example, giants of the food and raw materials industry.

Everyone showed great interest.

They want to know more about the potential benefits they can derive from the Zlecaf market.

And I must say that their observations are very encouraging.

In these times of strong geoeconomic and geopolitical tensions, they are indeed looking for niche markets where they can invest and set up alternative value chains for their investments, for their products, but also for their services.

I think we have a really unique opportunity as an African continent.

So we tried throughout the week to present ourselves as this alternative market, this place where they can set up new value chains.

You mention geopolitical tensions, Africa is not spared

Yes of course.

There is a reality that we must face and be honest about.

We face many challenges.

Some are political, others are macro-economic in nature such as foreign exchange and liquidity reserves crises.

But these are not challenges that are unique to the African continent.

Climate change, for example, is not unique to Africa and I think investors understand that.

It's all about risk assessment, the degree of risk to take before investing.

But it is happening in other parts of the world, not just in Africa.

But I think well-informed investors understand the global context and are still ready to invest in Africa. 

Last October in Accra [Zlecaf headquarters, editor's note], you launched the Guided Trade Initiative (GTI), the Guided Products Initiative.

What is it about ?

In 2020, the Assembly of Heads of State and Government of the African Union decided that we must start to really trade with each other.

We therefore identified, last October, nearly a hundred products that are marketed throughout Africa and seven countries whose customs system was in line with the procedures required by Zlecaf for preferential trade.

And this pilot project was a great success.

He demonstrated that the Zlecaf is a reality.

So it's a big step that has been taken?

A giant step.

When you think about it, there has never been preferential trade between regions of the continent.

For the first time, we had products from North Africa, in this case air conditioners made in Egypt, which were exported to Ghana.

Kenyan tea, an agricultural product with added value, was shipped to West Africa.

This had never happened before in Africa.

We always traded with Europe and sometimes we traded with Europe to trade among ourselves.

So, we have taken a giant step in dismantling this old model of trade and this old model of African economy which by nature was colonial.

How to convince other countries to join this initiative?

Many countries are in the process of setting up the customs systems required by Zlecaf.

More and more countries are saying they will be ready when we launch a new Guided Products Initiative in June.

More and more countries are declaring themselves ready.

More and more companies have also expressed an interest, including multinationals.

For example, we met here in Davos with three multinationals that are present in Africa and who told us that they wanted to be part of this Initiative.

When I was in Tokyo last December, Japanese companies expressed the same interest.

The interest is huge and not just from governments or the public sector because, as I said, this is the first time in 70 years that Africa is trading with itself.

What about the Zlecaf certificate of origin?

What does it take to get it?

The threshold for "made in Zlecaf" is quite high.

It must have at least 40% local content.

For its products to obtain the Zlecaf Origin certificate, which gives them access to customs duty reductions, you must prove and demonstrate that they are manufactured in the area.

Then the certificate of origin can be issued.

With the initiative launched in October, 96 products have obtained this certification.

Agricultural products, manufactured products, tiles, air conditioners, beauty products, alcoholic beverages have obtained the certificate made in Zlecaf.

Today there is a very wide range.

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