Apart from playing crucial role in increasing trade among African countries, the African Continental Free Trade Area (CFTA) will be a stepping stone to trade, investment and development across the Horn of Africa (HoA), Scholars say.
A couple of weeks ago, the House of Peoples’ Representatives approved the draft bill that has made Ethiopia one of the members of CFTA. The HoA’s GDP is estimated about 247,751 billion USD in 2016 and has over 122,618,170 population.
Multilateral Trade Deal and Relations Director with Ministry of Trade and Industry, Musse Mindaye says as Ethiopia has strong ambition of widening its market in neighboring countries and beyond so that the approval of CFTA will step up the efforts in this end.
Moreover, he says it speeds up the country’s activities to join WTO in the near future. Likewise, the government‘s commitment to privatize public enterprises is a substantial measure to assist the effort.
Abebe Aynete, Peace and Security Senior Researcher and Research Director the Ethiopian Foreign Relations Strategic Study Institute, believes that following the rapprochement between Ethiopia and Eritrea the Horn countries are breathing peace which is a critical tool to improve economic and political integration to the region.
As the Horn countries are now enjoying peace and cooperation, CFTA will give an impetus to the economic integration in the region, he says.
To ensure sustainable peace and cooperation, realizing the integration is a must, he therefore, notes that Ethiopia ought to have legal trade agreement with Eritrea sooner than later
.
“Free African Trade Agreement has various phases and one of them is creating free trade zone among the countries. Therefore, such peaceful negotiations with neighboring countries are significant to this end.”
As to him, Ethiopia’s approval of the bill, as a home of the AU is commendable,and the agreement is significant to widen market access and help the nation to strengthen its economy.
“Nowadays, ensuring economic and political integration is significant to countries across the globe in a bid to be influential and beneficiary in economic and political affairs. Today the Horn of Africa is on the right path to achieve economic integration shortly and the political integration will go along with it.”
The Ethiopian Herald April 16, 2019
BY YOHANES JEMANEH
