As things stand at the moment, a diverse range of effective strategies have been put in place for the most part with a number of regional and international market blocks with a focus on augmenting trade integration to make each and every one beneficiary.
Beyond a shadow of a doubt, the continent of Africa would give a boost to fashion new employment prospects and consolidate battling against poverty and kindle socio economic development and take the continent to the next level of development in the shortest possible time.
Notwithstanding the fact that member states have been working around the clock with the purpose of bringing the agreement into effect, the intended destination has not been attained yet in accordance with expectations. In the face of challenges the future is rosy for AfCFTA.
If African nations put the accent on business opportunities through the agreement by getting to the bottom of technical quandaries making the most of action oriented measure, the continent of Africa for sure would enhance regional value chains.
AfCFTA’s tagline is creating one African market; the first step is developing Africa’s customs union with a common external tariff, AU Trade Commissioner said. “Thus, we are working towards this direction to enable the continent to pursue free trade with third parties.”
In a press briefing he gave in the recent past, the AU Economic Development, Trade, Industry, and Mining Commissioner Ambassador Albert Muchanga stated Africa’s enormous potential in education and training, tourism, healthcare, and transportation also make the free trade area a huge opportunity.
“The implementation of the AfCFTA should not be left to a single AU entity or member state and the participation of all concerned actors are so crucial.” “Here, the key priority is to supply the market of AfCFTA. Without production, there is no trade. We have to produce. In this respect, we are promoting the development of regional and continental value chains across Africa.”
It is recalled that the commission published a study under the title ‘Made by Africa’, in close collaboration with the International Trade Centre (ITC) to identify sectors with high potential for sustainable value chain development in Africa. The study also classified bottlenecks preventing businesses from full implementation.
The study included 94 regional value chains that are going to be promoted by both the African private sector and the global community. The African Capacity Building Foundation, the training, which is designed explicitly for African Ambassadors and diplomats posted at Permanent missions to the African Union aims at enhancing their understanding of AfCFTA and equip them with the knowledge and skills to accelerate its implementation effectively, according to a Press Release sent recently to The Ethiopian Herald.
It would also generate valuable insights and policy recommendations that can drive the African Continental Free Trade Area forward significantly increasing intra-African trade improving regional integration. Moreover, enhancing economic growth, job creation as well as providing better livelihoods for the continent’s people is amongst the major impacts that the training would highlight.
Thus, governments are encouraged to take advantage of the AfCTFA to promote inclusive and structural transformation in African countries to increase the volume of intra- African trade.
Ethiopia’s economic plan should encompass policies targeting full utilization of Africa’s free trade area, Addis Ababa Chamber of Commerce and Sectorial Associations (AACCSA) suggested.
AACCSA Secretary General Shibeshi Betemariam told local media that the country ought to formulate economic policies compatible to the protocols of the AfCFTA in order to enhance the full utilization of the continental integrated market. “Nations like Kenya and Rwanda design their policies and strategies guided by their Sustainable Development Goals (SDGs).
Ethiopia has also designed its policies in response to SDGs but what remains is taking the AfCFTA protocol such as protocol of trades on goods, services and investment into account,” he underscored.
With regard to digital transaction, he indicated that the government has formulated Digital Ethiopia 2025 which aimed at integrating states, creating efficiency and convenience and linking Ethiopia’s economy with neighboring countries. Furthermore, the Secretary General said that it would have great impact on global value chain in allowing cross border market linkage not only in between neighboring countries but also across the globe.
Emphasizing that being producer is not mandatory to engage in digital transaction, creating platform would serve the nation hugely. To this end, he indicated that there are emerging platforms such as Ride, delivery, digital health and other services.
In the same way, the UNECA Regional Integration and Trade Division Director said Ethiopia is ready to take advantage of AfCFTA. Ethiopia’s commitment and actions towards the implementation of the national strategy for AfCFTA and bringing all stakeholders are well recognized and appreciated.
In collaboration with the Ministry of Trade and Regional Integration (MoRTI) and the United Nations Economic Commission for Africa (UNECA) and other stakeholders, Policy Studies Institution (PSI) has organized a consultation Forum on the Development of Ethiopia’s National AfCFTA Implementation Strategy recently at Skylight Hotel, Addis Ababa.
Speaking to The Ethiopian Herald at the sidelines of the event, Stephen Karingi (PhD), Director of Regional Integration and Trade Division of UNECA stated that Ethiopia is one of the 22 founding members who ratified AfCFTA, and the country is moving towards its national AfCFTA implementation strategy. The efforts of Ethiopia in terms of infrastructure development are appreciated.
Ethiopia is ready to take advantage of the AFCFTA in relation to infrastructure, connectivity, productive capacity.” Adding, the nation is on the right track in the logistics and services transport component that the Ethiopian airlines offer, the industrialization and trade diversification potential and capabilities through the special economic zones in Hawassa and everywhere.
Ethiopia is set to commence trial trading of commodities under the African Continental Free Trade Area (AfCFTA), Ministry of Trade and Regional Integration (MoTRI) announced.
In an interview with local media, MoTRI Minister Gebremeskel Chala said recently that Ethiopia has made the necessary preparations put in place the trial trading phase and implement the framework agreement through streamlined strategies.
“Alike other African member countries, Ethiopia is currently employing preliminary activities to commence commodities trial exchange of goods with selected counterpart countries,” he underscored. He further mentioned that the Ministry has also projected to nullify 90% import taxes of agricultural and industrial products within ten years.
Similarly, some 7% of goods are also approved to be nullified in the long term and other 3% strategic items exempted from the list that is believed to give policy space for the given nation framed as per the common framework agreement, the Minister noted. Thus, the country has approved 90% of commodity tariffs for 6,000goodsto the African Free Trade Zone, he further remarked.
When this trade agreement framework is effectuated in full swing, it would become world’s leading free trade zone that realizes the African Union’s Agenda 2063 goal of becoming economically vibrant and influential continent, it was learnt. It should be borne in mind that the leader of the African Union member states has recently endorsed Ethiopia’s tariff line poised to exchange goods within the AfCFTA.
Facilitating the operation of the African Continental Free Trade Area (AfCFTA) is instrumental to foster economic integration and build lasting peace in the Horn of Africa (HoA), the Ministry of Peace (MoP) said.
The Ethiopian News Agency (ENA) in collaboration with the MoP and Ethiopian Electric Power (EEP) held a panel discussion recently on regional peace and stability matters.
Speaking at the occasion, the MoP Minister Binalf Andualem stated that Ethiopia has a huge responsibility to ensure enduring peace and stability as well as to foster economic integration in the HoA. In this regard, facilitating the operation of the AfCFTA would expedite efforts that aim to build solid peace and economic interconnectedness in the region and the entire continent at large.
Ethiopia is committed to the realization of economic integration vision and its Foreign Policy gives equal weight to neighbor’s peace to its internal stability and this principle is the root cause for the country’s huge involvement in peace-enforcing missions in the HoA. Ethiopia also believes that the trade supply-chain among countries should be supported by proclamation and other legal frameworks, Binalf elaborated.
According to him, having considered its huge responsibility in the HoA, Ethiopia should focus on activities that foster regional economic integration and stability through consultation, cooperation, discussion and others. The country should also devise mechanisms to overcome challenges that have been posed by lack of peace and conflict in the strategic region.
Evidently, Ethiopia has been experiencing relative peace in most areas and enduring peace will be ensured through the active participation of citizens. This lasting peace offers an opportunity and capacity to resist external challenges and pressures.
For his part, EEP Director General Ashebir Balcha said that the country has been hugely working to integrate the HoA as well the continent via electricity. “Currently, Ethiopia sells electricity to four countries and plan set to provide power to another three states that would greatly contribute to pacify the volatile region.”
BY ADDISALEM MULAT
THE ETHIOPIAN HERALD THURSDAY 4 JULY 2024
