AfCFTA: GITFiC expresses worry over lack of implementation strategy by most African countries
The Ghana International Trade and Finance Conference (GITFiC), has revealed that it is quite disturbing that most African countries are yet to develop a national implementation strategy for the African Continental Free Trade Agreement [AfCFTA].
It noted that even though some countries already have existing trade policies and developed guidelines, it is not enough to maximise the full benefit of the AfCFTA.
GITFiC in May this year called on government and stakeholders in the trade sector to implement an enhanced trade finance support programme. Adding that such programme is necessary because it will provide valuable credit and liquidity support for the intra- African trade.
According to an evaluation research conducted by GITFiC and signed by the Chief Executive Officer, Selasi Kiffi Ackom, it was revealed that the Rules of Origin (RoO)and its certificate of origin, were crucial component to facilitate trading under the AfCFTA.
The research believes that for the AfCFTA to fully achieve its goals, commitment has to be extended to the various components of the operations of the trading system. With that, it applauded the African negotiation parties for sustaining the level of commitment.
GITFiC, as an institution championing the evolution of the African Continental Free Trade Area (AfCFTA) has been carefully monitoring and observing the operationalization of the AfCFTA.
According to The GITFiC, in December 2018, the first AfCFTA Intra-African Trade Fair was held in Cairo, Egypt. Business deals between private investors and business players were around $32 billion which exceeded expectations.
The GITFiC also noted that in 2021, two Ghanaian companies, Kasapreko company limited and Ghandour cosmetics under the AfCFTA certificate of origin, transported alcohol and cosmetic product to South Africa and Guinea respectively.
In 2022, it also noted that Accra, Kumasi, Takoradi, Tamale and Koforidua will be sensitized to access the readiness of the private sector for the AfCFTA implementation and will as well, help in developing a structure that would solve challenges that will come up.
It aslo motivates African Trade Ministers to intensity their efforts in reaching a great feat in the AfCFTA, taking into consideration the draft strategy plan by Cameroons.
Accra was also declared as the commercial capital of Africa, a decision that positions Ghana as a commercial hub in the sub region. This was announced in one of annual conferences held by GITFiC.
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The GITFiC believes that the Government of Ghana should critically investigate the asymmetric bank lending rate adjustment to enhance the competitiveness of the Ghanaian industry, as it launches into the African market.
The GITFiC realized that Non – Tariff Barriers (NTBs), a component of the AfCFTA, are often overlooked by trade watchers and analysts. These barriers become a disincentive for trade.
The GITFiC has observed that the AfCFTA Online Mechanism for monitoring, reporting and elimination of NTBs has been largely underutilized. Therefore, GITFiC recommends that the State Parties must be given the necessary technical support to urgently establish the National Monitoring Committees and National Focal Points on NTBs.
In 2018, African Heads of State adopted the Protocol Relating to the Free Movement of Persons, Right of Residence, and Right of Establishment to enable Africans to freely move and work within Africa.
According to GITFiC, Keeping focused and maintaining the momentum could see the implementation of AfCFTA become one of Africa’s main weapons in combating COVID-19 and accelerating post-COVID recovery. Therefore, GITFiC urges the AU and African Governments to take bold decisions to keep the AfCFTA on track despite COVID19.
The GITFiC has also throws its support behnd the African group at the World Trade Organization (WTO) on the urgent need to grant a waiver to African countries to produce their COVID vaccines, a decision they made, believing in the collective strength of the Africans.
Taking into consideration the success of the AfCFTA, GITFiC recommended that Government and policymakers must listen to and comprehend the subject of AfCFTA in the same way that businesses and stakeholders do. They added that ECOWAS or other bilateral protocols should facilitate road and rail connections to neighboring countries to boost regional trade and mutual economic benefits.
To ensure that the AfCFTA’s core rules of origin serve as an accelerator for industrialization rather than a constraint to growth and export diversification, GITFiC recommended articulating policy reforms to address supply-side constraints.
The GITFiC also emphasized the importance of reviving National Development Banks to increase the scale of patient capital and drive export diversification.
