Trade and Industry Minister, Alan Kyeremanten has said the implementation of the African Continental Free Trade Area (AfCFTA) will increase Africa’s intra trade volumes by US$35 billion per annum.
This follows the commissioning and handing over of the secretariat for the African Continental Free Trade Area (AfCFTA) to the African Union Commission by President Akufo-Addo today.
Speaking at the ceremony in Accra on Monday, August 17, the Minister said; “First, it will increase the level of intra-African trade through better harmonisation and coordination of trade within the African continent. It is estimated that intra-African trade will increase by as much as US$35 billion per annum or 52% by 2022”
He added that the successful implementation of the free trade agreement will deepen regional integration of Africa into global markets through supply chain arrangements and other forms of subcontracting transactions.
“Africa will improve its terms of Trade with the rest of the world by earning higher values for its exports through value addition,” Mr Kyeremanten added.
Meanwhile, some economists have advised government to strategise its competitive market response following the postponement of the implementation of The African Continental Free Trade Area (AfCFTA).
An economist said though the initial implementation date of the AfCFTA has been deferred to January 2021, Ghana is required to strengthen its private sector to compensate any impending losses that may come from hosting the AfCFTA secretariat.
“Though Ghana is hosting the AFCFTA secretariat, it does not mean that we will be hosting the gains that come with the agreement,” the economist cautioned.
The African Continental Free Trade Area (AfCFTA) Secretariat is now targeting January 2021 for the commencement of the implementation of the pan-African free trade agreement following its postponement due to the outbreak of the Coronavirus pandemic.
According to the AfCFTA Secretary-General, Wamkele Mene, it is imperative for member countries to conclude negotiations on trade tariffs and other protocols under the AfCFTA within the next six months.
The continental free-trade area would be the world’s largest economic free trade zone, adjudged by spatial size and population, and is expected to increase intra-African trade from the current 12 percent of total trade by African countries to 52 percent by 2023.
Source: Ghanaweb
