This archive report was first published on 5 July 2019.
African Leaders to Decide on Free-Trade Zone Headquarters ¶
On July 5, 2019, African leaders gathered at the African Union summit in Niger to decide which nation will host the headquarters for a continental free-trade zone.
The African Continental Free Trade Area aims to unite the continent's 1.27 billion people and its $3.4 trillion nominal gross domestic product. The deal has been signed by 52 of the continent's 55 states, although only 25 have ratified it.
Leaders at the summit will also set a date for trading to begin in the African Continental Free Trade Area. The bloc aims to remove trade barriers and tariffs between members.
Five countries - Kenya, Ghana, eSwatini, Madagascar, and Egypt - are in the running to host the headquarters. Egypt holds the AU presidency this year and has been promoting itself as a linchpin for African trade.
“Egypt is one of the oldest members of the African Union and enjoys strong relations with African states,” said an official from Egypt's trade ministry. “We have all the requirements.”
Kenya and Egypt already host head offices for other international bodies and are well connected by established national airlines. Kenya hosts the headquarters of the U.N. agencies for the environment and for urban development: UNEP and UN-Habitat.
“Nairobi is a very natural location for such a body. It is easy to reach any part of this continent (from here),” Peter Munya, the Kenyan minister of trade, told reporters.
The winning country will gain prominence and prestige, secure jobs for citizens at the secretariat, and receive a cash boost to its travel and tourism industries.
After the summit, African Union heads of states and governments will unveil regulations governing issues like trade liberalisation, rules of origin, removal of non-tariff barriers, and the development of a payments and settlements system.
