The common thread running through all these explanations is that the cost of trading in Africa is unattractive and prohibitive whether it is as a result of non-tariff barriers, trade bottlenecks created by infrastructural, policy and procedural constraints, complex clearance procedures, cumbersome documentation requirements or unpredictable trade policies. Several explanations have been offered to explain this state of affairs, including the dependence of African economies on commodity production and exports, lack of diversification resulting in a mismatch between supply and demand, tariffs and non-tariff barriers, inefficient transport infrastructure, poor trade logistics and high security risks. In 2017, less than 20% of Africa’s total exports and imports went to and from the rest of the continent. In this article, we will analyse some of the most critical challenges experienced so far in the quest for proper implementation of the Agreement with a view to identifying workable solutions.Ĭhallenges to the Actualisation of AfCFTAĪlthough slowly increasing, intra-Africa trade remains low. Proper implementation of the Agreement will require, first, the political will and capacity of the governments in each state party to implement the AfCFTA, and second, the cooperation and capacity building of private actors to embrace the ideals of trading within Africa as envisaged under the Agreement. These objectives are feasible with proper implementation of the agreement, but there are significant issues that may pose a challenge in the implementation of the agreement. The objectives of the AfCFTA include the elimination of tariffs and non-tariff barriers to the exchange of goods progressive liberalisation of trade in services cooperation on investment measures harmonisation of intellectual property rights and competition policies cooperation on customs matters and implementation of trade facilitation measures establishment and promotion of cooperation in all trade-related areas and maintaining an institutional framework for the implementation and administration of the Continental Free Trade Area. The African Continental Free Trade Area Agreement (AfCFTA) is set to contribute to lifting 30 million people from extreme poverty and 68 million people from moderate poverty by 2030 and increase real income gains by as much as 8% if properly implemented.
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