AU Summit 2023: to boost inter-African trade through AfCFTA
To boost intra-African trade, the continent has embarked on the gradual elimination of tariffs on 90 percent of goods, reduction of barriers to trade in services aimed at increasing Africa’s income by $450 billion by 2035.
The successful implementation of the AfCFTA lead to the creation of more decent jobs, improved welfare and better quality of life for all citizenry, and sustainable development.
The AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of Small and Medium Enterprises (SMEs) and overall industrialization of the Continent.
As of February 2022, eight countries representing the five regions of the continent – Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia, participated in the AfCFTA’s Guided Trade Initiative (GTI), which seeks to facilitate trade among interested AfCFTA state parties that have met the minimum requirements for trade, under the Agreement.
This initiative supports matchmaking businesses and products for export and import between State Parties.
The products earmarked to trade under the Initiative include: ceramic tiles; batteries, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried fruits, and sisal fibre, amongst others, in line with the AfCFTA focus on value chain development.
“In 2023, the AfCFTA Guided Trade says it will also focus on Trade in Services in the five priority areas, namely: Tourism, transport, Business Services; Communication Services; Financial Services; Transport Services, and Tourism and Travel-related Services”.
The ultimate objective is to ensure that AfCFTA is truly operational and the gains from the initiative are improved implementation in order to achieve increased inter-regional and intra-Africa trade that would yield economic development for the betterment of the continent at large.
The adoption by the African Union of the theme of the Year 2023 as the “Year of AfCFTA: Acceleration of the African Continental Free Trade Area Implementation”, is expected to generate greater political commitment and accelerate the effective implementation of the AfCFTA to fully benefit the African citizenry, achieve the Aspirations and goals of Agenda 2063.
The year-long activities will enhance the existing collaboration among the member states, the Regional Economic Communities (RECs), AU institutions, the private sector, development partners, and other stakeholders, to mobilize and implement actions that boost intra-Africa trade, particularly trade in value-added production and trade across all sectors of Africa’s economy.
The AfCFTA build on the progress achieved by the eight RECs under their customs unions, free trade areas and other trading arrangements.