This archive report was first published on 26 September 2019.
With the launch of the African Continental Free Trade Area (AfCFTA) just around the corner, officials are pushing for all member states to ratify the free trade deal. The July 1, 2020 launch is expected to bring significant economic benefits to the continent.
According to trade experts, 90% of outstanding issues on the rules of origin and tariff guidelines have been resolved. A meeting of director-generals of Customs, revenue authority officials, and trade experts from member states was held in Kampala, Uganda, to discuss the implementation of the AfCFTA agreement.
The agreement came into force in May 2019 after ratification from 27 countries. Of the 55 African countries, 54 have signed the agreement, with only Eritrea holding out. African customs officials are working to persuade Eritrea to sign the agreement, but chances of a breakthrough remain low.
“Eritrea does not produce much, which could explain why it is not bothered about the AfCFTA. However, despite economic and financial sanctions imposed on some African countries, member states are still able to trade fairly well with each other,” said Peter Malinga, a trade expert who attended the Kampala meeting.
With the AfCFTA expected to create a $2.5 trillion economic bloc and usher in a new era of development, officials are urging African countries to intensify efforts towards building a single and unified continental market.
The United Nations Economic Commission for Africa (UNECA) estimates that the African continental free trade accord will bring about “large potential gains” for Africa as a continent. The AfCFTA is expected to augment intra-African exports by over $1 billion and create nearly two million new jobs.
