The Africa Continental Free Trade Area (AfCFTA) Beckons
Background
The 18th Ordinary Session of the Assembly of Heads of State and Government of the African (AU) held in Addis Ababa, Ethiopia in January 2012, adopted a decision to establish a Continental Free Trade Area (CFTA) by an indicative date of 2017.
The Summit also endorsed the Action Plan on Boosting Intra-Africa Trade (BIAT) which identifies seven (7) clusters:
• Trade Policy
• Trade Facilitation
• Productive Capacity
• Trade Related Infrastructure
• Trade Finance
• Trade Information and
• Factor Market Integration
The CFTA will bring together 54 African nations with a combined population of more than one billion people and a combined Gross Domestic Product (GDP) of more than US$3.4 trillion.
The AfCFTA Framework Agreement establishing the Africa Continental Free Trade Area and the Annexed Protocols on Trade in Goods, Trade in Services and Rules and Procedures for the Settlement of Disputes was adopted on March 21, 2018 when it was signed by 44 out of 55 Heads of State.
Broad General Objectives
The creation of a single continental market for goods and services, with the movement of business persons and investments, thus paving the way for accelerating the establishment of the Continental Customs Union and the African Customs Union in order to deepen the economic integration of the African continent.
Creation of a liberalised market for goods and services through successive rounds of negotiations.
Resolution of the challenges of multiple and overlapping memberships and expedite the regional and continental integration processes.
CFTA Advantages for Africa and Ghana
It is envisaged that implementation of the AfCFTA Agreement will boost intraAfrican trade which is at a low ebb in comparison to intraregional trade elsewhere. It has been projected by the United Nations Economic Commission for Africa (UNECA) intra-African trade could increase by as much as $35 billion per annum.
Implementation of the CFTA Agreement will help Ghana advance its “Ghana Beyond Aid” agenda as it ceases to be a dependent economy which is vulnerable to external shocks. It can pave the way for a golden age of industrialization and a prosperous self-reliant Ghanaian economy.
It will also incentivize the private sector as the African CFTA creates an enormous market for industrial goods and services under flagship governmental initiatives like the Free Zones and the One District, One Factory (IDIF).
Ghana with bi-partisan support is making a concerted effort to lobby for the plum prize of hosting the Secretariat of the Africa Continental Free Trade Area in Ghana. Hosting the Secretariat, will be a diplomatic stroke of genius for Ghana.