African free trade bloc opens for business, but challenges remain

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African countries began officially trading under a new continent-wide free trade area on Friday, after months of delays caused by the global coronavirus pandemic.

FILE PHOTO: Cranes and containers seen at APM Terminals at the gateway port in Apapa, Lagos, Nigeria July 30, 2019. REUTERS/Temilade Adelaja

Backers say it will boost trade among African neighbours while allowing the continent to develop its own value chains. The World Bank estimates it could lift tens of millions out of poverty by 2035. However, the pandemic also gave the process added impetus, said Silver Ojakol, chief of staff at the AfCFTA’s secretariat.

And an annex to the deal outlining the rules of origin - an essential step for determining which products can be subject to tariffs and duties - has not been completed yet.Members must phase out 90% of tariff lines - over five years for more advanced economies or 10 years for less developed nations. Another 7% considered sensitive will get more time, while 3% will be allowed to be placed on an exclusion list.

 

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