The African Continental Free Trade Area (AfCFTA) is one of the Flagship Projects of Africa’s development framework, Agenda 2063. The AfCFTA aims at accelerating intra-African trade and boosting Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations.
Key to the success of the AfCFTA is the elimination of the various barriers to trade that have historically prevented African countries from trading with each other resulting in an over reliance of goods and services imported into the continent and the resulting lack of investment and development in local service industries, manufacturing and subsequent growth of centres of expertise and regional value chains in the economic sectors that would lead to the industrialisation required to create employment and improve the socio-economic wellbeing of millions of people on the continent. from extreme poverty and another 68 million people from moderate poverty. The successful implementation of the AfCFTA will lead to the creation of more decent jobs, improved welfare and better quality of life for all citizenry, and sustainable development and is expected to increase Africa’s income.
Various Protocols (Legal Treaties) govern the AfCFTA agreement namely the Protocol on Trade in Goods, Protocol on Trade in Services, Protocol on Rules & Procedure on the Settlement of disputes, Protocol on Investment, Protocol on Intellectual Property Rights, Protocol on Competition Policy, Protocol on Digital Trade, Protocol on Women and Youth in Trade.
In addition there are various instruments that are being implemented that aim to facilitate trade within the AfCFTA Regime and they include
• The Rules of Origin: A regime governing the conditions under which a product or service can be traded duty free across the region learn more on [ Ссылка ]
• The Tariff concessions: It has been agreed that there should be 90% tariff liberalisation over a 10-year period with a 5-year transition for non-Least Developed Countries (LDCs) and 10 years for Least Developed Countries.
• The Continental Online Tool/Mechanism for monitoring, reporting and elimination of Non-tariff Barriers (NTBs) learn more on [ Ссылка ]
• The Pan-African Payments and Settlement System (PAPSS) a centralised payment and settlement infrastructure for intra-African trade and commerce payments. This platform, a collaboration with the African Export-Import Bank, (Afreximbank) aims to facilitate payments in local currencies as well as formalise informal cross-border trade in Africa. Learn more on [ Ссылка ]
• The African Trade Observatory: A trade information portal that will address hindrances to trade in Africa due to lack of information about opportunities, trade statistics as well as information about exporters and importers in countries. Learn more on [ Ссылка ]
Learn more about the African Continental Free Trade Area by visiting the African Union’s AfCFTA Secretariat on [ Ссылка ]
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