B&FT Editorial: AfCFTA will engender healthy competition among African businesses

The Association of Ghana Industries (AGI) is urging the private sector to be proactive in their post COVID-19 recovery processes or risk possible extinction. This comes in view of imminent implementation of the African Continental Free Trade Agreement (AfCFTA).

A larger market will mean businesses will have to step up their competitiveness to be relevant, since there are a host of competitors vying for the market share. Competition drives innovation, inspires perseverance and builds team-spirit.

Healthy competition between businesses encourages good customer service, quality products, and fair pricing – and that is why economists and experts are so enthused about AfCFTA, since they perceive greater efficiency, innovation and quality African products.

Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum- Akwaboah, couldn’t have made it clearer when he said: “We need our businesspeople to think positively and start planning ahead, because the world is a very competitive place. In the case of Ghana, in the face of the African Continental Free Trade Agreement, we know businesses from other countries are strategising to take our market share in Africa. We must also be strategising to take other people’s markets, otherwise we’ll be out of business”.

Opportunities abound under the Agreement, he noted; but added that if we are slow, then we’ll see others who are aggressive and quite prepared taking over our market in terms of production of goods and services.

Thus, the AGI is only preparing the minds of Ghanaian companies and businesses that they will have to strategise to be ahead of their numerous competitors on the African continent who will all be vying for the same marketplace, and it is the most innovative, cost-effective and durable products which will attract the most customers.

We believe Ghanaian businesses needn’t necessarily be petrified by the prospect of heightened competition; rather, it presents a perfect opportunity to innovate, create and be globally relevant by trying to capture as much as possible of the market share to be successful.

AfCFTA will propel businesses to go the long haul and remain relevant, but those that choose to remain in their comfort zone will be priced out.

Enactment of the AfCFTA is fantastic news for the continent. Securing free trade throughout the continent has the potential to kick-start Africa’s industrial revolution and develop its economy in ways never before seen.