The whole continent will benefit from African Continental Free Trade Area
Kigali, 27 July 2018,
The Economic Policy Research Network (EPRN Rwanda) in partnership with UN Economic Commission for Africa (ECA) and Rwanda Ministry of Trade and Industry (MINICOM) organized a policy dialogue to discuss the African Continental Free Trade Area (AfCFTA) and assess the country's readiness to tap into the agreement’s potential.
Participants at the policy dialogue said that by creating a Continental Free Trade Zone, Africa hopes to achieve its long-standing goals of integration. Mr Andrew Mold, Officer-in-Charge of ECA in Eastern Africa, said that since its formation in 1958, ECA has supported pan-African aspirations of ever-closer cooperation and integration.
Mold stated that Africa stands to gain much more from AfCFTA than it benefits from other trading arrangements with regions outside the continent, noting that ECA has estimated that, if fully implemented, the AfCFTA could double the amount of intra-African trade. "We are talking about 1.2 billion people with a combined GDP of $2.2 trillion, so it's a huge market", said Mr Michel M. SEBERA, Permanent Secretary in Rwanda's Ministry of Trade and Industry. Mr Sebera added that in order to tap into AfCFTA, Rwanda has first to enhance its industrial development, add value to its primary commodities and boost its service sector.
Mr Mold explained that despite having been granted preferential market access to high-income markets for many decades now, most countries on the continent are still import-dependent and export excessive amounts of unprocessed commodities, and, as a consequence, run up large trade deficits. "Large trade deficits slow down the pace of economic growth and development", he added. “We clearly need a new approach to tackle these problems – the implementation of the AfCFTA is that approach.”
Experts at the meeting were pleased that Rwanda was among the first countries to ratify the agreement, which means that the country has undertaken all required legislative measures in readiness to implement the agreement. The continental-wide agreement will enter into force after 22 ratifications.
Dr Charles Ruhara, Legal Representative of EPRN Rwanda commended ECA for informative and quality research on the AfCFTA, and stressed that the agreement represents a powerful tool for driving industrialization, economic diversification and development. “The African Continental Free Trade Area (AfCFTA) is a framework between African Union member states, aimed at creating a single market with seamless cross-border trade and at increasing intra-Africa Trade” said Dr Charles.
The policy dialogue gathered more than 150 people including government officials, development partners, the academic, business private sector and the media.
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