By Africa Links 24
Published on 2024-03-04 15:00:39
The progress on the implementation of the AfCFTA has been significant, with eight protocols agreed upon and 47 countries issuing their tariff commitments on goods and services. The protocols on investment policy, intellectual property rights, and competition policy have been concluded, attracting more investment to the continent and allowing countries to patent their products. An adjustment fund has been set up to resolve trade issues between member states, and a fully-fledged secretariat has organized events such as an intra African trade fair and an AfCFTA forum.
Countries are actively engaged in trade under the AfCFTA framework, with examples like Kenya and South Africa launching the first consignment that included machinery, agricultural products, and electronics. Value-added products like coffee and batteries have been traded, showcasing the potential for increased trade across borders. However, there is still room for improvement to expand the variety of traded products and increase the overall intra-African trade.
Despite the implementation of the AfCFTA, intra-African trade is still relatively low. Factors such as the Covid-19 pandemic and the time required for countries to adjust their trade policies and reduce tariffs contribute to this. ECA projects that by 2045, intra-African trade will increase significantly, but there is still progress to be made in infrastructure development and tariff reduction.
The issue of sensitive products under the AfCFTA is currently being addressed, with ongoing conversations regarding apparel and textile trade. The Pan African payment and settlement system is seen as crucial for facilitating trade by allowing countries to trade in their own currencies, reducing the need to worry about exchange rates.
While a single currency for the continent may not be feasible in the near future, the Pan African payment system is a step towards addressing this issue. ECA is actively supporting countries in implementing their AfCFTA strategies, helping them design national and regional strategies, and facilitating peer learning groups for countries to share their experiences and best practices.
In conclusion, the implementation of the AfCFTA has made significant progress, but there are still challenges to overcome. With continued support from organizations like ECA and efforts to improve trade infrastructure and reduce trade barriers, the potential for increased intra-African trade and economic growth is promising.
