Page 12 - Issue 9
P. 12

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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