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Business Writer
THE African Union (AU) Commission has commissioned the permanent secretariat of the African Continental Free Trade Area (AfCFTA) as the launchpad for Africa’s economic transformation.
During the launch ceremony on Monday, AU Commission chair Moussa Faki Mahamat and Ghana’s President, Nana Akufo-Addo stressed the importance of the body to the continent’s economic transformation agenda.
“The economic integration of Africa will lay strong foundations for an Africa beyond aid. Africa’s new sense of urgency and aspiration of true self-reliance will be amply demonstrated by today’s ceremony,” Akufo-Addo said.
Ghana has been selected as the venue for the headquarters of the new body by African leaders during a Summit of AU heads of states in Niamey in July last year. The launch and implementation of the biggest trading agreement is expected to spur regional trade among member countries. Currently, 54 states have signed on to AfCFTA, out of which 28 have ratified. Zimbabwe is poised for wider gains under this framework and early this year the country officially joined the AfCFTA despite outstanding issues.
President Akufo-Addo appealed to member states that have not ratified to do so before the next AU summit in December, “to pave the way for the smooth commencement of trading from 1 January 2021.”
The Covid-19 pandemic has heightened the importance of the success of the AfCFTA, the Ghanaian president said. “The destruction of global supply chains has reinforced the necessity for closer integration amongst us so that we can boost our mutual self-sufficiency, strengthen our economies and reduce our dependence on external sources,” he said.
AfCFTA, the world’s largest free trade area, has the potential to transform the continent with its potential market of 1.2 billion people and combined GDP of around $3 trillion across the 54-member states of the AU. Mahamat said the opening of the secretariat marked a milestone in the vision of Africa’s founding founders for continental integration.
Wamkele Mene, the first secretary-general of the AfCFTA, said the agreement offered an opportunity for Africa to confront the significant trade and economic development challenges such as market fragmentation, small national economies, over-reliance on primary commodity exports, narrow export base, lack of export specialization, under-developed regional value chains and high regulatory and tariff barriers to trade.
“We have to take action now. We have to take action to dismantle the colonial economic model that we inherited,” Mene reiterated.
The African Development Bank Group provided a $5 million institutional support grant to the AU towards the establishment of the AfCFTA secretariat, which is located in an ultra-modern office complex in the central business district of the Ghanaian capital.
The event also featured virtual goodwill remarks from AU Chairman, President Cyril Ramaphosa of South Africa.
Bongani Ndlovu