The first of January 2021 saw the launch of the African Continental Free Trade Area (AfCFTA). This milestone agreement strives for greater trade cooperation on the continent. The aim is to bring together 1.3 billion people in a $3.4-trillion economic bloc that will be the largest free trade area since the establishment of the World Trade Organization. This agreement comes into force, with support from 54 of the 55 countries recognised by the African Union (Eritrea being the sole exception) is a hugely positive move.
The Agreement establishing the AfCFTA was signed in March 2018 and of the 54 Member States of the African Union that have signed, 30 countries have deposited their instruments of ratification with the Chairperson of the African Union Commission.
The main objectives of the AfCFTA are to create a single market for goods and services, facilitate the movement of persons, promote industrial development and sustainable and inclusive socio-economic growth, and resolve the issue of multiple memberships, in accordance with the African Union’s Agenda 2063. The agreement lays a solid foundation for the establishment of a Continental Common Market.
AfCFTA presents a significant opportunity to boost intra-regional trade as well as increase Africa’s negotiating position on the international stage. Intra-African trade has always been relatively low. In 2019, only 15% of Africa’s $560-billion worth of imports came from the continent – compare this with a figure of 68% in the European Union (UNCTAD).
In addition, many African nations have struggled to develop better-enabling environments for attracting investment and it should follow that this agreement will help to make the continent an increasingly attractive location for foreign companies seeking to penetrate its huge market potential.
This landmark agreement is off the starting block but there is much to be negotiated to reach the desired goal of #OneAfricanMarket.
Under AfCFTA trading, with an aim to eliminate export tariffs on 97% of goods traded on the continent, tariffs on various commodities where rules of origin have been agreed will be drastically reduced and businesses of all sizes will have access to a much bigger market than they used to before. Non-tariff barriers (NTBs) to trade will also be addressed and a mechanism for reporting of NTBs has been put in place (www.tradebarriers.africa).
In parallel to the AfCFTA, the African Union has also introduced the Protocol on Free Movement of Persons.
Though it will be years before the AfCFTA is fully implemented, the significant steps that have been taken to get the agreement to this point should not be underestimated, particularly in the current difficult global environment. Increasing prosperity on the African continent will ensure that it continues to be a continent of great interest to Irish exporters.
Enterprise Ireland has been assisting Irish companies to navigate the Sub-Saharan African market through our office in Johannesburg, along with an established and growing network of industry specialists across the continent. Contact us to learn more about the opportunities for your business in this growing export destination.
Backed by the Department of Enterprise, Trade and Employment in partnership with Enterprise Ireland and the local authorities, the Look for Local campaign aims to highlight small Irish businesses in every sector, asking individuals to support businesses in their locality when looking for goods or services.
“The campaign is tapping into the deep well of goodwill towards local businesses that exists in communities throughout Ireland,” says Conor O’Donovan, head of global marketing and corporate communications at Enterprise Ireland. “Local companies across a range of sectors are featured on the Local Enterprise LookforLocal website.
“It is supported by national and local advertising and marketing,” he adds.
He advises any small business which wants to be featured on the LookforLocal website to contact their local LEO to make arrangements.
“More than 4,200 businesses are benefiting from the campaign which has generated excellent traction online after just a few weeks.”
The campaign is of particular relevance to companies which have pivoted and changed their business models during the year in response to the disruption caused by the Covid-19 pandemic. Since January, the LEOs have approved over 11,000 Trading Online Vouchers for small Irish businesses, helping them to establish an online trading presence, or adapt it, under the National Digital Strategy.
In addition, 330 retailers have been approved for €11.8m in funding as part of the government’s Covid-19 Online Retail Scheme, which is administered by Enterprise Ireland. The scheme is targeted at retailers which are looking to enhance their current online presence.
An online presence is also increasingly important for exporters. “A trend we’ve been seeing is that international buyers will search online before making contact with a potential supplier. It’s essential that Irish exporters have strong online visibility.”
Many small local exporting companies will now have to contend with the additional disruption caused by Brexit.
A key Brexit mitigation strategy for exporting firms is market diversification and the Enterprise Ireland Irish Advantage website offers them a shop window to buyers across the world to aid them in its execution.
Exporters and potential exporters interested in being promoted on the Irish Advantage website should contact Enterprise Ireland or their Local Enterprise Office,” he said.
O’Donovan also advises businesses to visit Enterprise Ireland’s Prepare for Brexit website.
“The site is full of resources and information to help businesses get ready for Brexit.
“On January 1 the UK will become a third country as far as trade with the EU is concerned. The Brexit Readiness Checker will take you through all the essential steps to take, including customs,” he says.
“Revenue has estimated that customs declarations will increase from 1.2 million a year at present to 20 million a year. There has been a massive uptick in visits to the site in recent months. The message is getting through that being better-informed means being better prepared and that makes for better outcomes.”
Irish companies are, by and large, retaining their existing overseas contracts, but new contracts are down this year as a result of Covid-19.
And there is a high degree of awareness of those supports. “That was one of the very encouraging findings of some recent Department of Finance research,” says O’Donovan.
“Almost 90pc of SMEs are aware of Enterprise Ireland supports and initiatives while over 80pc are aware of what’s available from the LEOs. That awareness will be of critical importance as we strive to help Irish companies become more innovative, competitive and diversified in order to succeed and take advantage of the opportunities that will arise in the coming year and beyond.”
Social Value can be described as the additional value created in the delivery of a contract to a community, beyond the monetary value of the contract itself. While Social Value has been a feature of UK public procurement over the last decade, it has grown in prominence since introduction of the Procurement Policy Note (PPN) 06/20 in September 2020. This note requires councils to include a weighting of at least 10% to social value in tenders. Therefore, it is necessary for any Irish company dealing with the UK public sector to consider social value and how they can create value in a wider community.
This Enterprise Ireland publication has been developed in collaboration with Steve Oldbury, Founder & Director, Bidwriting.com to help companies to meet the social value requirements of UK tenders and improve their capability to win business with UK public sector bodies.
This guide includes:
A well considered diversification plan can minimise a dependency on the domestic market and the potential exposure to domestic downturn.
Exporting opens channels to exponentially expand the home market and identify new markets to take advantage of globally. A larger market base delivers economies of scale, enabling you to maximise your resources.
Your ongoing domestic operation should cover business-as-usual fixed costs, either directly or via other types of business financing, which should, in turn, facilitate a faster growth in your export profits.
Accessing global markets will provide additional benefits to an exporter, aside from increased revenues such as new ways of doing business, increased awareness of global best practice, cultural and international competitiveness, that could also bring benefits to your market offering in Ireland.
Considering your company’s export potential will increase its resilience against potential competition within the domestic market.
If your business is at an early development stage the Local Enterprise Office has the supports to help you plan, start and grow
If you are are already supported by Enterprise Ireland you can contact your Development Advisor here.
The Market Research Centre provides access to world class research databases to help client companies make better, more informed business decisions. Contact the Market Research Centre here.
Enterprise Ireland hosts events to assist companies’ growth plans – See our events calendar for details.
Our Market pages and Going Global guides provide expert insights and contact details for our overseas offices.
Learn how our Exporter Development team can support your growth.
You are now successfully exporting to your first market. Now begin to build on this success and grow your exports.Do you have the necessary resources both in terms of staff and finance to meet the demand of a new market?
Do you have the manufacturing, packaging, logistics, linguistic capacity?
Have you considered your carbon footprint; requirements of buyers?
How will this impact your current financial standing? Will it strengthen or dilute your position in the market?
Is there potential in the adjacent markets where buying patterns, pricing and local regulations may be similar?
If you are are already supported by Enterprise Ireland you can contact your Development Advisor here.
The Market Research Centre provides access to world class research databases to help client companies make better, more informed business decisions. Contact the Market Research Centre here.
Enterprise Ireland hosts events to assist companies’ growth plans – See our events calendar for details.
Our Market pages and Going Global guides provide expert insights and contact details for our overseas offices.
Learn how our Exporter Development team can support your growth.
Enterprise Ireland coordinates a well-established cluster of over 80 water and wastewater companies which provide products and service solutions to address global water challenges in areas such as water scarcity; climate change and resilience; rising energy costs; increased regulation; increased quality requirements and ageing infrastructure. The launch of the AMP 7 2020 – 2025 water sector investment cycle in the UK and Wales provides opportunities to these companies, which are well positioned to service the English, Welsh, Scottish and Northern Irish municipal and industrial water sectors and their respective capital and growth objectives.
This report is prepared for businesses which operate or are considering entry into the English and Welsh water sector over the course of a new five-year Asset Management Plan (AMP 7) 2020-2025 which has an estimated value of £51b, with an approximate 50:50 split between capital and operational investment.
From reading this report, you should gain a greater understanding of the structure of the English and Welsh water and wastewater sector including
