Ghana president Nana Akufo-Addo at Gambia's Independence day ceremony at Independence Stadium, in Bakau, Gambia February 18, 2017. He was present at the online launch of the AfCFTA today. — Reuters pic
The African Continental Free Trade Area aims to bring together 1.3 billion people in a US$3.4 trillion economic bloc that will be the largest free trade area since the establishment of the World Trade Organisation. But obstacles — ranging from ubiquitous red tape and poor infrastructure to the entrenched protectionism of some of its members — must be overcome if the bloc is to reach its full potential.
“Covid-19 has demonstrated that Africa is overly reliant on the export of primary commodities, overly reliant on global supply chains,” he said. “When the global supply chains are disrupted, we know that Africa suffers.” 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 per cent of tariff lines — over five years for more advanced economies or 10 years for less developed nations. Another 7 per cent considered sensitive will get more time, while 3 per cent will be allowed to be placed on an exclusion list.