As Africa’s manufacturers await liberalised market for free trade

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Since 2020, the COVID-19 pandemic has become the key alibi for inaction of many governments in addressing key economic and developmental issues. Though the pandemic impacted the integration goals of the AfCFTA, stakeholders believe that the lethargic reactions of African leaders towards opening up their borders and liberalising trade leaves much to be desired. Indeed, three major issues are believed to be affecting the AfCFTA in its initial phase. First, the negotiation on the Rules of Origin seems endless. Several members were unwilling to ratify all the articles of agreement.

Since 2020, the COVID-19 pandemic has become the key alibi for inaction of many governments in addressing key economic and developmental issues.Notwithstanding the trade restrictions among African countries, the African Continental Free Trade Area , so far indicates a large amount of optimism but a far more realistic pace towards the goal.

Secondly, the AfCFTA suffers as does the African Union in general, from a lack of popular perception about its advantages across the board. African businesses in particular are not fully aware about the advantages of the AfCFTA. To address some of the challenges, members of the private sector in Africa have called for the completion of negotiations on schedule of tariff offers, finalisation of work on Rules of Origin, full operationalisation of the Pan African Payment Platform and the speedy resolution of all outstanding issues germane to the effective implementation of AfCFTA.

Others include addressing macroeconomic environment, poor competitiveness and dearth of trade facilitation infrastructure prevailing in many African countries, deliberate development of industrial inputs to reduce the intensity of reliance on the global supply chain, intentionally bringing down all the historical physical borders in Africa, facilitating peaceful co-existence and security of life and property, as well as effective support for all organised private sector organisations in Africa.

He said the single liberalised market for free trade in goods and services under AfCFTA offers a lifetime opportunity for African countries to trade more with each other and refocus national economic as well as investment and industrial policies to be in sync with continental aspirations to enhance private sector development.

 

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