FLAGSHIP PROJECT

African Continental Free Trade Area (AfCFTA)

Aim

Create a people-centred developmental Free Trade Area that goes beyond tariff liberalisation to increase choices of the African people.

Create a Free Trade Area that will enable Africa to address many of the continent’s most significant challenges, including youth unemployment, migration, skills development, women’s empowerment, industrialisation and infrastructure development and that will enable Africa to strengthen its trade and investment relations; thereby unleashing its business potential including in its service sector.

Progress to-date

  • The Agreement establishing the AfCFTA was adopted in March 2018 with protocols on trade in goods;

  • The Agreement entered into force on 30th May 2019;

  • 54 AU Member States have signed the Agreement so far;

  • 27 AU Member States have ratified and deposited their instruments of ratification;

  • The AfCFTA Operational Phase was launched in July 2019 with the following instruments:

  • The AfCFTA Trade in Goods Portal/Website where Member States will upload their initial tariff offers;

  • The Pan-African Digital Payment and Settlement System;

  • The Online Tool/Mechanism for Elimination of NTBs within the AfCFTA; and

  • The Dashboard of the AU Trade Observatory.

  • The Agreement will start trading under the AfCFTA Regime by July 1st, 2020;

  • The AfCFTA Interim Secretariat has been set up at the AUC, while the Permanent Secretariat will be hosted in Ghana.

Challenges

  • Inadequate human and financial resources for completion of negotiations for phase I issues as well as to start phase II;

  • Some Member States and partners are negotiating bilateral trade and investment agreements with Third Parties which is against the spirit of the Nouakchott Decision and may jeopardise the AfCFTA;

  • The heavy reliance of AfCFTA’s smooth implementation on the progress of other projects such as PIDA, CAADP, SAATM and the protocol on free movement of people.

Next Steps

  • Flexible mechanisms for mobilising resources will be established to ensure smooth implementation of AfCFTA.

  • Arrangements will be made to continue sensitisation and deepen understanding of stakeholders on AfCFTA and its benefits.

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FLAGSHIP PROJECT
African Continental Free Trade Area (AfCFTA)