Women and Trade in Africa

In the aftermath of a global pandemic that shifted trade relations, to an unforeseen conflict that fluctuated global trade commitments, the historic African Continental Free Trade Agreement (AfCFTA) has regenerated hopes for the African continent in its pan-African vision of a united Africa.  The continental free trade area was launched by the African Union (AU) summit on July 7th, 2019 in Niamey, Niger, to create the world’s largest free trade area, with a market of 1.2 billion people and a combined GDP of 2.5 trillion dollars.

The objectives of the agreement are reflected in Article 3 of the Framework Agreement as follows: removing tariffs on 90% of goods, liberalising trade in services, addressing non-tariff barriers (NTB) to intra-regional trade and eventually creating a common continental market for goods and services with free movement of labour and capital. In addition to trade liberalisation, the continental free trade area Agreement is designed to strengthen Africa’s capacities and encourage economic and social development. It is expected that intra-African Trade in goods will increase in volume and value following the implementation of the AfCFTA Agreement.

The continental free trade area’s success depends on the execution of a competition policy. The policy will build on the foundations laid at the national level and through regional economic communities in Africa. As part of the AfCFTA, the competition policy will create a multi-level competition regime. Key to note, the purpose of a competition policy is to ensure that businesses and companies compete fairly. Traditionally, competition policies have been gender-blind and prided themselves on that fact. However, calls are emerging to integrate a gender lens into competition policies to meet gender-specific objectives for trade.

Benefits under the Agreement are not automatic for women and youths. Therefore, it is important to understand what is needed at the national and regional levels to ensure equal opportunities. Sub-Saharan Africa suffers an average loss of US$ 95 billion each year as a result of gender inequality according to the 2016 African Human Development Report.  Women are marginalized and left behind in trade due to entrenched gender inequalities present in the economic, social, and environmental spheres across the continent. Africa’s average score of gender equality is 51.4 out of 100, a reflection of the unequal interactions between women and men based on societal norms. This position is partially explained by existing gender biases in education and training, wage pay gaps, and unequal distribution of unpaid care.  Several existing gender imbalances, both macro and micro, determine the differential impact of trade on women, while also negatively affecting women’s ability to take advantage of existing and new opportunities offered by trade.

The United Nations Conference on Trade and Development (UNCTAD) (2021)  reported that women contribute largely through informal cross-border trade in most African countries, constituting 70% of the trade. In 2018, intra-African trade accounted for approximately 16 percent of imports and exports, however, 20 to 60 percent of total intra-African trade is carried out by unregistered traders. Consequently, data on their characteristics and roles are scarce. As a result, the continental free trade area secretariat, in partnership with UNDP and UN Women worked in collaboration with the UN country offices to conduct national consultations and online surveys to capture the views and voices of women in trade, to mitigate against underreporting. In the consultations, it was revealed that women primarily trade in commodities (like food products) and cash crops, such as shea, vanilla, and essential oils. In addition, women trade in livestock products like leather and milk, as well as other products like fish and honey. According to a UN women's report, women who engage in informal cross-border trade suffer invisibility, stigmatization, violence, harassment, poor working conditions, and a lack of recognition for their economic contribution. 

In the continent, recognition of women’s role in and contribution to development is not a novel concept. Several provisions are in place that obligate state parties or member states to take specific actions and measures to advance women’s rights. Women’s economic empowerment and gender equality are promoted at the international and regional levels at various policy forums. According to the Convention on the Elimination of all Forms of Discrimination against Women (CEDAW), women have the right to be free from discrimination in virtually all aspects of their economic, social, and cultural lives. At the fourth World Conference on Women in September 1995, the Beijing Declaration and its platform for action were adopted to improve women’s political, economic, social, and cultural lives. Further, to reduce poverty among women and ensure a higher quality of life, the Protocol to the African Charter on Human and People’s Rights on the Rights of Women in Africa (Maputo Protocol), promotes women’s access to credit, training, skills development and extension services whilst guaranteeing the rights of women in all areas of life. Lastly, the African Union Agenda 2063 sets out seven aspirations, each with goals to achieve inclusive growth and sustainable development on the continent by 2063. Aspiration 6, aims to achieve an Africa whose development is people-driven, with a keen reliance on the potential offered by the African people, especially its women and youth.

At the regional level, efforts are visible and highlight commitments to cater to a gender-related capacity under the REC's legal instruments.  In Article 155 of the Treaty for the Establishment of the East African Community (EAC) (1999), women are recognized as a vital economic link within the chain of agriculture, industry, and trade. Given this, member states agree to: promote the inclusion of women in business issues at the policy level; create an environment that facilitates their effective participation in common market trade and development; develop special programs for women in small and medium-sized companies; and eliminate laws and regulations that restrict credit access to women. Similarly in the West of Africa, Article 63 of the Economic Community of West African States (ECOWAS) (1993) recognises the importance women play in development. The article reveals that member states are committed to harmonising, coordinating, and establishing policies and mechanisms that increase the economic, social, and cultural status of women. To maximize women’s contribution to regional development, member states must identify and assess all barriers that inhibit participation, and incorporate their concerns and needs into society’s normal operations within a framework to address their constraints. Under the foundations laid by RECs, the continental free trade area includes articles that do the same. Although the AfCFTA does not include a separate chapter on trade and gender, two clauses that explicitly acknowledge women’s participation - Article 3 (e) and Article 27 (2) (d)  of the Protocol on Trade in Services.

An essential part of improving the prospects and capacities of women in the AfCFTA, an understanding of where they stand in cross-border trade is key. Underscoring that the implementation of continental free trade area must be guided by an understanding of the cross-border export profiles of women, as well as the border value chains linked to these profiles.  According to a study done by the African Union, The Opportunities Present in the AfCFTA for Women in Informal Cross-border Trade (ICBT),the findings pointed to some efforts by RECs in establishing processes to promote trade for ICBT within their respective regional communities, that had a positive impact in ICBT.  Through the Common Market for East and Southern Africa (COMESA), the East African Community (EAC), and the Economic Community of Western African States (ECOWAS) initiatives, more women now can participate in ICBTs for the import of goods. To facilitate trade, the EAC implemented arrangements that have helped traders clear their shipments more expediently. Moreover, Trade and information desks (TIDOs) have been established at border posts of several African countries by COMESA, to avail information on the Single Tax Regime (STR) to actors of ICBT, particularly women. Likewise, ECOWAS’ Informal Trade Regulations Support Program (ITRSP) seeks to increase intra-regional trade, which contributes to the construction of the common market and reduction of poverty, by facilitating the migration of informal sector actors to the formal sector by providing incentives.

 Even though these provisions enhance women’s capacity to trade under the continental free trade area, they do not create specific obligations, nor do they provide the certainty and predictability that state parties need to address the challenges women face in trade. In addition, the continental free trade area agreement fails to emphasize enough how crucial it is to create gender-sensitive trade policies, to ensure women benefit equally from the AfCFTA Agreement, additional provisions must be made. 

Calls for the continental free trade area agreement to be approached differently by integrating the views of women in trade and their proposed solutions into its design, in anticipation of phase II of the Agreement. By doing so, explicit gender-related provisions can be drafted and serve as entry points for the promotion of women’s economic empowerment throughout the continental free trade area. The protocol on intellectual property rights, for example, could include provisions relevant to women and women-led businesses to extend the benefits of the intellectual property system to them. This would address the challenge of access to information and knowledge on trade faced by women.  According to the national consultationswomen in trade knew little or nothing about the continental free trade area and its impact on their trading services. Although the AfCFTA is operationalized and African governments are actively involved in the negotiations, the flow of information regarding the agreement and other trade-related initiatives in their respective countries seems to be disconnected between government authorities and women in intra-trade. 

Among the women entrepreneurs consulted in Zimbabwe, 80 percent were not aware of specific initiatives supporting them in meeting quality standards and packaging requirements. When support exists, it is not sufficiently gender-sensitive. Due to limited understanding and awareness of the AfCFTA Agreement, women in Malawi could not access any existing valuable support when it came to taking advantage of cross-border trade opportunities. Furthermore, the gender digital divide in Gambia prevented women entrepreneurs from accessing support opportunities online. Whilst in Ghana, women entrepreneurs had limited knowledge of the continental free trade area beyond its name, as well as the market access opportunities and support available to further participation. 

It is in this light that, adding a specific protocol on women in trade would also provide the necessary legal framework to guide state parties in creating a more favourable environment and enhance women’s capacity to trade and contribute to Africa’s economies. This includes capacity building, knowledge generation, and skills enhancement in information centres at border areas, in which a lack of knowledge of intellectual property protection is a distinct barrier to trade. Building gender-responsive institutions and addressing social norms are important ways to reinforce these elements.

Observing that for the continental free trade area to enhance competitiveness, women must be included in regional and global value chains and grow their participation in higher value-added segments of the production process, including agriculture, manufacturing, and service sectors. Addressing arising questions surrounding attempts to maximise a competition policy are crucial.. Can female traders move up the value chain and engage in the country and at the border crossing by leveraging available infrastructure (transport, water, and sanitation)? In what ways are the policies, regulations, and standards related to trade accessible to women exporters?  Is there any awareness among female cross-border traders of the free trade area and its protocols? How can opportunities be made more visible? 

Noting further, the AfCFTA’s protocol on women and youth should be informed by the voices of women in trade. At the national, regional, and international levels the participation, leadership, and equal representation of women in negotiations, decision-making processes, and platforms is key to introducing legislative and administrative measures to meet international and regional targets. Furthermore, the establishment of one-stop border posts with desks especially for women is a good way to facilitate both formal and informal cross-border trade. This can be operationalised through implementing Gender Observation tracker which monitors progress on gender equality with robust monitoring and evaluation components. This can support women in trade as a resource to boost competitiveness within the continental free trade area.

Cognizant of the realities of Africa, this article acknowledges that, until states take the initiative to include women and enhance the capacity of a gendered response to trade liberalisation under the continental free trade area as a manifestation of state policy, then all the above recommendations and expected achievements cease to make sense. What hinders the fruition of these hopes is the entrenchment of socio-cultural and religious expectations of women in respective states. Considering that policies and laws are drafted from the idiosyncrasies of leaders and intern societies, dismantling already held prejudices and expectations of women in their contribution to society will prove to be harder than anticipated. It is time to start taking our cemented ideologies to court and question what we truly hold sacred or else, the envisioned success of the AfCFTA will just form another white elephant that has come to be associated with African development and Pan-African expectations.