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Tshengi Ndlovu: Women businesses deliver twice as much revenue compared to businesses founded by men

In the wake of International women’s Day celebrations, we caught up with gender activist Tshengi Ndlovu from Zimbabwe, who shares her passion for addressing trade barriers and the digital divide, as some of the key challenges facing women in Africa.

Tshengi highlights the power of trade facilitation agreements such as the WTO Trade Facilitation Agreement and the AfCFTA Continental Simplified Trade Regime which promise to change the face of cross-border trade in Africa, and to help achieve seamless, simplified trade that allows women and youth traders to flourish.

Tshengi attended the WTO-ITC High Level Event on Women in Trade on 25 February where she gleaned key insights around the barriers holding women traders back, and brought her lens to bear as a trade facilitation expert viewing trade policies through a gender prism.

Edited excerpts from an exclusive interview:

Tshengi, you began your career working in customs for the Zimbabwe Revenue Authority, before moving into advisory roles in the trade facilitation space. What inspired you to make this change in your career trajectory?

As a Customs Officer, I already facilitated trade within the legal framework, ensuring the compliant movement of goods and services across borders. I interfaced with all the sectors of the economy, perceiving gaps and opportunities in the realm of trade. The approach to trade policies was gender neutral, yet the economy was a gendered structure. I became an unlikely gender activist as I examined trade policies through a gender prism and started advocacy work on trade facilitation reform that promoted gender-specific trade facilitation reform.

From your personal experience on the ground, what were some of the main difficulties encountered by women entrepreneurs regarding imports and exports?

International trade, by its nature, is complex because of the legal dimensions attendant to it. Applying trade laws, especially in the context of preferential rates of duty and customs controls, has made it difficult for lay people, including women. Our women have been traders since the beginning of time, yet they remain in the peripheries of most African economies because of the complex trade terrain. The barriers to trade, especially the non-tariff barriers and technical barriers to trade, have compromised the growth of women enterprises trading across borders. Trade remains unpredictable and costly not only to lay people but also to women and youth.

Big businesses are able to engage specialists in customs clearances; however, the same cannot be said for our women, as these services are very expensive.

We applaud the WTO Trade Facilitation Agreement, which, although regrettably gender neutral, has caused countries to ask questions about how to achieve simplified seamless trade.

We also applaud the AfCFTA Continental Simplified Trade Regime which will be very helpful to informal cross border traders to enjoy preferential treatment of their products.

How do you see the position of women in trade, which was the subject of a recent WTO-ITC High Level Event which you attended in Abu Dhabi, UAE. What were some of your key takeaways from this event?

Women’s businesses are perceived as high risk by financial institutions. However, research findings show that women businesses deliver twice as much revenue in comparison to businesses founded by men. The just-ended WTO-ITC High-Level Event in Abu Dhabi through the launch of WIEDE during the summit will change the narrative by plugging the financial gap that has always haunted women’s businesses.

Most importantly, the summit acknowledged the digital divide that draws women back. As such, the Fund will also address this phenomenon and promote e-commerce, which has low entry barriers to business. 

The African Continental Free Trade Area is an ambitious project now in the implementation phase. It is intended to reduce barriers and promote intra-African trade. What is your perception of the progress made so far under this agreement?

The AfCFTA is an inclusive trade agreement set to be larger than the WTO. The progress has been remarkable, having been concluded in less than three years owing to the unprecedented political will manifested by the State Parties.

It is a progressive agreement in that it now has a stand-alone Chapter dedicated to Women, Youth, and MSMEs. As you know, MSMEs are the engine drivers of African economies, and women are overrepresented within them. Article 27 2(d) in the AfCFTA Protocol on Trade in Services provides capacity building for women and youth in the areas of exports. We have seen how ITC, including other international development agencies, have embarked on various programmes to equip women with skills to align them with the markets brought about by the AfCFTA.

In addition, we have witnessed African countries open their borders by removing or relaxing visa requirements to promote people’s movement as they trade across borders. 

Could you tell us about your involvement in the Organisation of Women in International Trade (OWIT) and how it is supporting women?

I am the Co-Vice President of the Organisation of Women in International Trade Chapter Development. OWIT understands the varied trade barriers women face when escalating their businesses. OWIT International, through its strategic partnerships, provides women with markets, builds capacity in women to navigate international markets, and provides a global networking opportunity with over 2000 women to pursue collaborations and synergies.

We have 9 Chapters in Africa. OWIT Conference Africa assists these Chapters in taking advantage of intra-African trade brought by the AfCFTA. This year’s OWIT Conference Africa is scheduled to take place in Zimbabwe.

Based on your own experience, what would be your advice to budding women entrepreneurs from Africa who wish to export their products or services?

Export markets, by nature, have stringent requirements which need to be wholly understood. In short, they need to research the export market because we now have sophisticated consumers with sophisticated preferences. It is also essential to understand the dimensions of the custom, take advantage of the reduced rates of duty if there are any, and have all the supporting documents for the consignment. It will help to engage the services of specialists in customs broking who will be helpful in sourcing documents like the certificate of origin.

Last but not least, our women should also seek to patent their novel products while considering export markets.

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