Eight Africa countries have agreed to implement the African Continental Free Trade Area (AfCFTA) at a ceremony held last week at the Ghanaian capital Accra.
AfCFTA is one of the continent’s project to boost intra-Africa trade that bring about social development and economic growth by 2026. There has been talks of creating an intra-Africa free trade zone for many decades.
The agreement among Ghana, Kenya, Rwanda, Tanzania, Egypt, Mauritius, Cameroon and Tunisia to start trading under the AfCFTA was dream come true for many Africans.
Speaking at the launching of the agreement, Secretary-General of the AfCFTA Wamkele Mene, said “this is the moment the founding mothers and fathers of the Organisation of African Unity have longed for. “
According to the agreements, traders can freely import and export 96 products, including horticultural products, pharmaceuticals, rubber, aluminum kitchenware, sugar, steel and wooden products. Wamkele Mene said the number of products are going to triple by next year. Traders will enjoy duty-free and quota-free in the partnering countries.
Many economic experts have suggested that the project has the potential to lift millions out of poverty, especially in partnering countries where incomes and standard of living are expected to increase significantly.
Many African countries are introducing sweeping reforms aimed at joining the AfCFTA and boosting their economies and reducing poverty. This project has provided African countries with the opportunity to build their economies to minimize the cost and impact of shocks such as the COVID-19 pandemic and Russia-Ukraine war.
However, some people warn that the continent has to overcome enormous problems, including problems of operation, institution, legal, and trade policy, before starting to benefits from intra-Africa free trade, especially when partnering countries have to give up tax revenue that they desperate need.
ABJ/APA