Page 12 - Issue 9

Leaders & Politics

Niamey, Niger 7 July 2019- The operational phase of the African Continental Free Trade Area, AfCFTA has been launched, after a day-long
summit of Heads of State and Government of the African Union (AU) in the Nigerien capital./ FILE PHOTO
AfCFTA could result in welfare gains amounting to

USD 1.8 billion for Eastern Africa

he implementation of the African prospects for East Africa, allowing intellectual property regimes and create a
TContinental Free Trade Area regional firms to tap into the rapidly common platform for competition policy.
(AfCFTA) in Eastern Africa could result growing markets both within the region It includes a Protocol on Free Movement,
in welfare gains amounting to USD 1.8 and throughout Africa. helping address the skills shortages
billion for East Africa, boosting intra- However, the report stresses that many of constraining many sectors of the regional
African exports by more than USD 1.1 the expected gains could be undermined economy
billion and creating more than 2 million if the needs and concerns of the private The report was presented by Andrew
new jobs, says a new report. sector are not heard in order to gain an Mold, Chief, Regional Integration and
The report entitled: “Creating a understanding of the impact on the affected AfCFTA Cluster at ECA Office for Eastern
United Regional Market –Towards sectors. This requires an understanding of Africa and Anthony Mveyange, Director
the Implementation of The African needs at all levels including large, small of Research and Learning at Trademark
Continental Free Trade Area in East and medium-sized enterprises. East Africa.
Africa,” is jointly published by the UN The report also notes that establishing Ababa “The Africa Continental Free Trade
Economic Commission for Africa (ECA) regular platforms for public-private Area that we adopted last year will enable
and Trademark East Africa, in March this dialogues can help in identifying any us to work together through intra-Africa
year. challenges to implementation of the trade as it will reignite industrialization,
Commenting on the report, Stephen AfCFTA. and pave the way for Africa’s integration
Karingi, Director Regional Integration Commenting on the report, Ms into the global economy as a player of
and Trade Division at the ECA, says that Mama Keita, the Director of ECA in considerable weight and scale,” Ramaphosa
by 2040 the AfCFTA has the potential Eastern Africa, and Frank Matsaert, said, at the AU Head if states summits
to increase the value of agricultural and CEO, TradeMark East Africa praised the on AfCETA, in Addis. Adding: “It is the
food exports on the continent by US$16.8 collaboration of their two organizations realization of the dream of our forebears,
billion. Karingi noted that according and said that, in addition to providing, to see the rich resources of our Continent
to recent estimates by ECA, the largest for the first time, a set of comprehensive being marshaled for the collective benefit
percentage increases - that is over 25 per impact assessments for the East Africa of all Africans.”
cent in intra-African exports for industrial region, this report highlights the issues at But Ramaphosa’s predecessor as AU
sectors - are found in textile, wearing stake, identifying areas where governments chairperson, Egyptian President Abdel
apparel, leather, wood and paper, vehicle and the private sector will need to focus Fattah el-Sisi, had sounded a note of
and transport, agro-foods such milk their energies as the region moves forward caution about the challenges ahead. “The
and dairy products, sugar, beverages, to action. integration of the continent cannot be
vegetables, fruit, nuts and rice. The report notes the ambitious nature of achieved if we don’t develop Africa’s
According to the report, the elimination the AfCFTA: it is not simply a question of infrastructure,” Sisi said, adding, “Linking
of tariffs and non-tariff barriers required establishing a ‘free trade area’. It liberalizes the different regions of the continent is
by the Agreement will boost intra- service sectors as well as merchandise essential if the free movement of goods
African trade and improve developmental goods. It aims to simplify investment and and services are to be facilitated.”

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