Browsing: African Continental Free Trade Area

For starters, this is good news for the landlocked countries. It means that the landlocked countries in the EAC including Uganda, Burundi, Rwanda and South Sudan now have another coastal gateway away from the East African one in Kenya and Tanzania.

In addition, all the partner states have better bargaining power when it comes to trading with other blocs on the continent or internationally.
With the African Continental Free Trade Area (AfCFTA), the deal gets even sweeter.

Continent-wide, fully implementing the AfCFTA will increase intra-African trade with the elimination of duties. Projections show that by just reducing non-tariff barriers (NTBs), intra-African trade could double.…

Implementing the AfCFTA fully will increase intra-African trade through the elimination of import duties. By just reducing non-tariff barriers, intra-African trade could double.

The implementation of the Free Trade Area will lead to an increase in intra-African freight demand of around 28% by 2030 in comparison to a scenario without its implementation. Specifically, demand for road, rail, maritime and air freight will increase by 22%, 8%, 62% and 28% respectively.

According to the United Nations Economic Commission for Africa (ECA), the modal share on rail would increase from 0.3% to about 7% with Africa requiring close to 2 million additional trucks, over 100,000 rail wagons, 250 aircraft, and more than 100 vessels by 2030, if the AfCFTA is fully implemented.

Aircraft demand to support trade flows within West Africa will increase by 13.2% by 2030 while trade between North and West Africa would increase demand for aircraft by 12.9%. Within …

Women’s role in trade and economic growth is significant and across Africa; they have mostly worked in export-oriented industries like textiles and clothing, agriculture, and tourism. 

For long, women have been stuck in low-paid labour but with increased demand for skills, things are changing. The AfCFTA offers an opportunity for African women to take a deep dive into the opportunities it offers. Women are now taking on more jobs in wholesale and retail trade, finance, business services, and hospitality which have prepared them for the opportunities that the continent offers under the trade agreement.  

Intra-African trade is expected to rise by between 33 per cent and 52 per cent but this is dependent on how much tariff liberalisation takes place between African countries.…

The CET maximum rate was a realization by the EAC Secretariat on the proposed Common External Tariff (CET) rates of 30 per cent, 33 per cent and 35 per cent classified under the fourth (maximum) band, which include textiles, iron, steel and motor vehicles.

The East African Business Council (EABC) urges the partner states- Kenya, Uganda, Tanzania, Burundi, Rwanda and South Sudan- to adopt the maximum CET tariff trade to spur industrialization and strengthen the regional value chain.

In 2020, the total intra-EAC trade stood at 11.8 per cent, amounting to US$6.39 billion. The proposed 35 per cent tariff is set to boost the trade between EAC member states to US$6.4 billion.…

In practical reality, it aims at creating a continental market for goods and services, with free movement of businesspeople and investments in Africa.

Several reports indicate that the summit strives to bring Africa and Europe closer together through strengthening economic cooperation and promoting sustainable development, with both continents co-existing in peace, security, democracy, prosperity, solidarity and human dignity.

It is against this backdrop that the two partners are determined to work together on a strategic, long-term footing to develop a shared vision for EU-Africa relations in a globalized world.…

Africa is a busy geopolitical arena, with many players operating.
Russia has to compete against them, and distinctively remain focused its efforts. Russia welcomes diplomatic support from African countries, and unlike the West, it does not demand good governance or advocate for human rights reforms.
Russia likes to portray itself as not interfering in local politics or judging African countries, even though there is mounting evidence that it has been involved in meddling in elections in Africa through disinformation, fake news and attempting to exploit fault lines in societies through social media.…

Africa has for decades failed to provide improved trade mechanisms between African countries which has led to the current situation. The AfCFTA is supposed to remedy this.
And to be in good shape for trade under AfCFTA, countries have to ensure that they are willing to create value chains that will free the continent from the colonial trading system which has been in place for over 60 years and which has left the continent vulnerable.
With the potential benefits that the AfCFTA ha to offer Africa, the biggest trends that will drive growth on the continent include its population, technology and urbanisation among other factors.…

As a result of these and other reasons, the region’s economy is anticipated to recover faster than expected, according to the analysis.
Free trade is projected to play a critical role in Africa’s rapid integration into regional and global industrial and value chains during the next 12 months, according to the report
With AfCFTA fully implemented, the World Bank projects that Africa’s gross production will rise by about US$212 billion above the baseline by 2035, with manufacturing exports increasing by 62 per cent and internal trade in manufactured goods increasing by 110 per cent.…

The pan-African payments infrastructure was commissioned after a successful pilot phase in the West African Monetary Zone (WAMZ) countries where live transactions were done instantly.

Afreximbank worked with the West Africa Monetary Institute (WAMI) to launch the system in the WAMZ.

Following this successful milestone, PAPSS is now engaged in advanced discussions with other national and regional institutions for its rapid expansion across the continent.…

Speaking during a session titled The Evolution of Global Trade, at the ongoing Global Business Forum Africa 2021 in Dubai, Bin Sulayem highlighted the need to accelerate procedures for economic integration between the African states taking part in the African Continental Free Trade Area (AfCFTA), as well as obstacles hindering its success.

He reiterated the importance of establishing comprehensive economic partnerships and benefit from Dubai’s leading position a strategic trade hub connecting Africa and the region.…