BY ADDISALEM MULAT
Everyone agrees that if the African Continental Free Trade Area (AfCFTA) agreement is implemented, the continent of Africa for sure would reinvigorate trade, create job opportunities and foster free moment of people, alleviate poverty and seal deeper economic integration.
As it is impossible to pursue the aforesaid facts unless the agreement sees the light of day, member states of the African Union should go the extra mile to expedite its implementation and smooth the path of strengthening regional integration. Notwithstanding the fact that African nations have been closely working with the intention of cementing regional integration in the continent of Africa, the anticipated goal has not been achieved yet the level expected.
In actual fact, until today, African nations have been collaborating in a wide range of economic, social and political matters as well as other development activities that can take the continent of Africa to the next level of accomplishment. If the continent continues putting AfCFTA agreement into effect, the regional integration in Africa would be stronger than ever before.
Apart from amalgamating economic cohesion of the continent as well as firming up Africa’s resilience, AfCFTA agreement plays a huge role in giving center stage to industrial development and all-encompassing socio-economic growth and bringing the sons and daughters of Africa together.
In a similar vein, as the agreement plays a huge role in oiling the wheels of investments through the creation of a large market, strengthening productivity, encouraging industrial growth, augmenting competitiveness and other related aspects, the continental bloc should move heaven and earth for the implementation no matter what the cost may be.
In a related move, it is common knowledge that if the agreement is effectively put in place, it will lift millions of Africans out of poverty besides improving the income of the continent of Africa, bridging the manufacturing gap, and other things of a similar kind.
The other thing is as AfCFTA plays an extremely important role in bringing together the entire nations of Africa and eight Regional Economic Communities, transforming continent to global powerhouse, smoothing the path of job creation, industrialization, investment, the continental bloc has been playing a part in taking the continent of Africa to whole new level.
As a matter of fact as AfCFTA plays a major role in improving the lives of 1.3 billion people of the continent of Africa and abolishing trade obstacles and oiling the wheels of intra-Africa trade and widening market opportunities.
If African nations give prominence to the huge market potential of Africa through AfCFTA by getting to the bottom of technical predicaments making use of taking practical measures, the continent of Africa for sure would enhance the establishment of regional value chains.
While on the subject, as the continent of Africa is inundated with young population, the continent for sure would be the biggest market place just around the corner.
As the intentions of the AfCFTA are to generate a single market for goods and services, accelerate the movement of people, promote industrial development and sustainable and inclusive socio-economic growth, leaders of African nations should roll up their sleeves to resolve the issue almost immediately.
The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities (RECs). The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately US$ 3.4 trillion. The AfCFTA is one of the flagship projects of Agenda 2063: The Africa We Want, the African Union’s long-term development strategy for transforming the continent into a global powerhouse, according to information obtained from a document.
As part of its mandate, the AfCFTA is to eliminate trade barriers and boost intra-Africa trade. In particular, it is to advance trade in value-added production across all service sectors of the African Economy. The AfCFTA will contribute to establishing regional value chains in Africa, enabling investment and job creation. The practical implementation of the AfCFTA has the potential to foster industrialization, job creation, and investment, thus enhancing the competitiveness of Africa in the medium to long term.
Trade experts, business executives and advocates of the African Continental Free Trade Area (AfCFTA) called upon to accelerate the ratification of the Protocol on the movement of people, during the Africa Prosperity Dialogue.
In Africa Prosperity Dialogue held in Ghana from 26 to 28 January on the theme: “AfCFTA: from Ambition to Action delivering prosperity through continental trade,” African countries are called upon to “accelerate the ratification of the Protocol.”
Economic Commission of Africa (ECA) on its website stated that, the Agreement has, thus far, been signed by fifty-four of the fifty-five African Union (AU) Member States. Forty-four countries have deposited their instrument of ratification, but only four have ratified the Protocol on the movement of people.
The Protocol initially contained in the 1991 Abuja Treaty aims to facilitate and increase the movement of Africans within Africa, while enhancing their rights to entry, residence and establishment in AU member states. With more people able to move freely, countries will easily tap into a wider labor market to bridge skills gaps while trading across borders.
“Continental integration is an existential necessity and therefore a natural destiny for Africa,” said Stephen Karingi, Director of Regional Integration and Trade at ECA.
President Nana Addo Dankwa Akufo-Addo of Ghana at the event called upon to champion the Protocol on the free movement of persons. “Readily accept in all humility.” He cautioned, however, that “I need the approval of the AU before I can become the champion of anything”
The President urged “all of us here to see ourselves as champions of intra-African trade.” “We cannot afford to fail. As African nations, we must join hands with each other and work diligently to pursue this noble cause.”
“When our governments sign or ratify an agreement of this nature, they are making a collective promise to all of us…It is thus incumbent on all of us to support them to be true to their words, but also to hold them to account when they fall short,” said Melaka Desta, Coordinator of the African Trade Policy Centre at the ECA.
“Let Africans roam freely. Free movement of people is a must if Africa wants to enjoy the full benefits of the AfCFTA,” said Joseph Atta-Mensah, Senior Regional Adviser on Trade at ECA.
The Dialogue was organized by the African Prosperity Network in partnership with the AfCFTA Secretariat, the Government of Ghana, UNDP, and the Economic Commission for Africa (ECA). Organizers agreed to “meet annually, under the Africa Prosperity Dialogue,” and take stock of the progress of Africa’s prosperity agenda.
Ensuring the supply of energy among countries is pivotal for steadfast economic integration and accelerated implementation of the African Continental Free Trade Area (AfCFTA), according to experts.
In an exclusive interview with local media, Kenya Renewable Energy Association (KEREA) CEO Andrew Amadi energy, specifically electricity is the most important determinant of economic growth.
There is no country in the world that has become rich without electricity, he said, and added that countries need to move towards using energy for production and value addition.
There is no meaningful development that can happen without the use of electricity, Amadi stated, and noted “I think the integration of electricity is very timely because it will level the availability across countries.”
“So if we connected for example; we have connected Kenya to Ethiopia, if we connect Kenya to Tanzania, then from Tanzania to Rwanda; you can be able to supply electricity from the hydro in Ethiopia to Rwanda and turn down the generators they are using to generate electricity. That is the importance of integration,” the CEO elaborated.
Furthermore, Amadi pointed out that availability of energy supply will reduce huge capital investment on building electricity generation infrastructure.
Speaking of AfCFTA implementation, he stressed the need to remove any barriers that hamper easy facilitation of intra-trade in Africa. According to him, there is huge market that could be exploited for the benefit of the region if all agree to work in harmony together.
“If the barriers are less, if we harmonize customs and tariffs and if we all agree and say we want to grow this then we instantly create a big market in east Africa. East African community, we are talking 380 million people if you add Ethiopia we are at 500 million people market. If that market can allow goods and services, people move freely then we do not need to export to western markets. We can be able to supply our local markets and grow our economies trading on what each country or region has got capacity to produce and exploit,” the CEO noted.
Association of Power Utilities of Africa (APUA) Director-General, Abel Didier Tella said on his part there will be no meaningful development unless countries invest on energy. The energy issue in Africa should be considered as priority sector, he said, and added that governments have to put maximum effort in developing energy sector.
“When investors come to Africa; they see Africa as a place where you can come and take raw material. Now they have to change their views; they have to see Africa as a place where mining development support energy development, where we transform our raw materials before export, where we transform our raw materials and manufacture to create jobs and empower the youth with skill to work in factories,” Tella explained.
The Director-General underscored “transforming products through value addition is the only way to exit from poverty in energy.” Ethiopia has been working to strengthen its hydropower generation to export electric power to neighboring countries with a view to expedite regional economic integration and secure foreign currency.
The demand for electric power by neighboring countries is increasing from time to time; the government has been intensifying efforts to expand infrastructures vital to addressing this need. Ethiopia has already been exporting electric power to Sudan, Djibouti and Kenya while agreement is underway with South Soudan.
The Ethiopian Herald February 16/2023
