UK announces £35m support program for AfCFTA implementation
The Government of the United Kingdom (UK) has announced a £35m support programme towards the effective implementation of the African Continental Free Trade Area (AfCFTA) agreement.
The UK government’s fund support for the trade pact was announced by Anne-Marie Travelyan, UK’s International Trade Secretary.
“I am delighted to announce that our government has provided a support program to AfCFTA member states and the secretariat worth of £35 million. It will support AfCFTA negotiations and the agreement implementation making it easier for nations across Africa to trade together and therefore grow together. Last year the UK was proud to be become the first non African country to sign an MOU with the AfCFTA secretariat,” said Anne-Marie Travelyan.
Prior to the announcement of the support programme, Secretary General of the AfCFTA Secretariat, Wamkele Mene, was in the UK to speak with African Diaspora Business Leaders based in the Kingdom.
Speaking to the African Diaspora Business Leaders, Mr Mene said the AfCFTA is an apt response to the reluctance of investors to invest in small, fragmented and uncompetitive markets on the African Continent.
According to the Secretary General, the trade area agreement following its implementation, has provided a large and attractive market with reduced cross-border barriers for investors to undertake larger revenue projects on a regional rather than national scale.
Touching on opportunities for the diaspora community through AfCFTA, Mr Mene noted that there is now increased and diversified opportunities for the diaspora community to promote trade and foreign direct investment, create businesses and spur entrepreneurship transferring new knowledge and skills to the AfCFTA market.
“The AfCFTA agreement, whose implementation commenced on January 1, last year, provides a platform where the African diaspora can play an important role in the economic development of their countries of origin and the continent.
“The African diaspora community needs to take advantage of the opportunities presented by the AfCFTA, by harnessing the trade and investment engagements within the continent.
“From the perspective of knowledge and skills, the diaspora could provide long-and short-term human capital support in strategic sectors driving Africa’s economic growth.
“Regarding the trade access and facilitation dimension, the diaspora could serve as market entry facilitators, importers, distributors and co-investors for African export initiatives targeting global markets,” he remarked.
Touching on the ongoing Phase II negotiations of the AfCFTA agreement, Mr Mene averred diaspora investors will be protected by the Protocol on Investment.
“Investments and investors will be protected and have access to remedies when their rights are violated,” said the Secretary General.
The AfCFTA Protocol on Investment is expected to enhance investment governance and policy coordination and cooperation across the continent.
The Protocol on Investment, he stated, is expected to address barriers to investment entry in Africa, reduce time and costs of investment approvals, enhance transparency, improve efficiency and address fragmented investment regulatory frameworks on the continent.
Phase II of the AfCFTA negotiations covers trade related issues namely, Investment, Competition Policy, intellectual property rights (IPRs), digital trade (e-Commerce) and women and youth in trade, and are at various stages of development.
Concluding discussions with African Diaspora Business Leaders in the United Kingdom (UK), the Secretary General noted that, with the operationalization of the AfCFTA, the discourse about Africa is shifting from one of challenges to one about opportunities and prospects as the region is now receiving a high level of interest as an investment destination from investors from across the globe.
“Today, the case for investing in Africa is stronger than ever. Africa will remain a competitive investment destination for decades to come because of its improving relative risk profiles, demography and continental integration.
“AfCFTA is creating a new narrative that should inspire the African diaspora, to explore opportunities in the continent and invest in the various sectors,” he stated.
