Accra, August 17, 2020//-Ghana’s President Nana Addo Dankwa Akufo-Addo, today commissioned and handed over the Secretariat of the African Continental Free Trade Area ( AfCFTA) to the African Union (AU) Commission, at a brief ceremony, at the Africa Trade House, on Monday, 17 August 2020.
Delivering a speech at the ceremony, President Akufo-Addo stated that Ghana had discharged all of her obligations towards the establishment and the setting up of the office, following the selection of Ghana, in 2019, by the AU Assembly to host the AfCFTA Secretariat.
“We are, today, handing over a fully furnished and befitting office space, in a secured and easily accessible location within the business centre of Accra, as the Permanent Secretariat of the AfCFTA. We have provided also an appropriate, furnished residential accommodation as the official residence of the Secretary-General of the AfCFTA,” he said.
With Africa’s low levels of intra-Africa trade, as compared to those of the European Union, the President explained that this situation hinders Africa’s prospects of bringing prosperity to her peoples.
“A large part of the growth and prosperity that we seek on the continent will come from us trading more among ourselves. We, in Ghana, believe that an increase in trade is the surest way to deepen regional integration in Africa,” he said.
An effective implementation of the AfCFTA, President Akufo-Addo told the gathering, will dispel the notion that the AU is not capable of executing its own decisions, explaining that Africa’s new sense of urgency and aspiration of true self-reliance will be amply demonstrated by the handing over ceremony.
The President, thus, appealed to all Member States, who are yet to ratify the AfCFTA Agreement, to take advantage of the postponement of the date for start of trading, and do so by December 2020, to enable AU Member States to trade fully among themselves, so Africa can harness the benefits of the AfCFTA together.
“The pandemic has heightened the importance of the success of the AfCFTA. The disruption 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.
The President continued, “We are now the world’s largest free trade area since the formation of the World Trade Organisation, and we must make it count.
Covering a market of 1.2 billion people, with a combined GDP of $3 trillion, across the fifty-four (54) Member States of the AU that have signed up to the Agreement, it will provide the vehicle for us to trade among ourselves in a more modern and sophisticated manner; it will offer a huge opportunity to exploit the abundant wealth and resources of our great continent for the benefit of all our people; and it will give us protection in how to deal with other trading blocks.”
New Secretary General
In welcoming the newly elected first Secretary-General of the Secretariat, Mr. Wamkele Keabetswe Mene, and his family to Ghana, President Akufo-Addo urged him to work towards building a strong, efficient and effective Secretariat, with the capacity to implement the various trade rules, in line with the text of the Agreement, to help build credibility, and reduce trade policy uncertainty in the continent.
“The world is watching to see whether the Secretariat will, indeed, provide the springboard for Africa’s economic integration and rapid growth, and I am confident that, under your tenure, it will. Mr. Secretary-General, be rest assured of the firm support of the Government of Ghana for your work and activities,” he added.
President Akufo-Addo, in concluding, commended the President of the Republic of Niger, His Excellency Mahamadou Issoufou, current Chair of ECOWAS, for the stellar work he has done in championing the African Continental Free Trade initiative.
He congratulated and saluted and congratulated Cyril Matamela Ramaphosa, President of the Republic of South Africa, and current Chair of the Authority of the Assembly of the AU, for the benign, progressive guidance and supervision he has offered to make handing over ceremony possible.
Operationalisation of AfCFTA will increase Africa’s trade volumes by $35bn annually
Ghana’s Minister of Trade and Industry Alan Kwadwo Kyerematen has said the operationalisation of the African Continental Free Trade Area (AfCFTA) is estimated to increase intra African trade by $35billion annually or 52 per cent by 2022.
Additionally, it would address the challenges of small fragmented markets in Africa by creating a single market, which would lead to economies of scale.
Mr Kyerematen, who said this when he addressed dignitaries at the official commissioning and handing over of the AfCFTA Secretariat Building in Accra on Monday, said the successful implementation of the AfCFTA would bring many benefits to the Continent.
It would increase the level of intra African trade through better harmonization and coordination of trade within Africa, he said.
The Minister observed that the AfCFTA would add value to Africa’s abundant natural resources and promote economic diversification and industrialization.
He noted that it would promote the development of regional value chains and facilitate cross border investments in Africa and open up market access opportunities for small and medium scale enterprises.
With Africa’s population of 1.2 billion, which is estimated to reach 2.5 billion by 2050, Mr Kyerematen said Africa would become a very attractive destination for Foreign Direct Investment (FDI) because of its market size, with the potential for joint ventures and enhanced local content.
“Africa will improve its terms of trade with the rest of the world by earning higher values for its exports through value addition,” he said.
The Minister observed that the AfCFTA would enhance benefits to consumers on the African Continent through lower prices of goods imported from within Africa.
The effective operationalisation of the AfCFTA would significantly increase employment opportunities in Africa, particularly for the youth and other vulnerable groups.
Mr Kyerematen while acknowledging the benefits Member States would gain from the AfCFTA, said the benefits would not be accrued automatically and required each Member State to develop a National Programme of Action to harness the AfCFTA’s benefits, adding that, such programmes must be mainstreamed into national development strategies.
Additionally, he said, the effective implementation of the AfCFTA would require sustained political will and commitment from the highest level of executive authority in each country, in respect of providing adequate budgetary resources to support the growth and development of priority sectors, as well as creating the appropriate incentive and regulatory framework to attract investments from the private sector, both domestic and foreign.
There was the need for development of national, regional and continental trade related modern infrastructure including multi modal transport infrastructure to improve connectivity, he said.
“There will also be the need to diversify our economies and produce more value added products,” he opined.
The Minister said the challenges posed by non-tariff barriers and technical barriers to trade, including but not limited to standards, customs clearance processes and procedures and issues relating to rules of origin would all have to be addressed substantively.
“I’m confident that together we can address these challenges. In doing so, a lot will depend on the efficiency and effectiveness of the work that will be undertaken in the Secretariat building that we are about to commission,” he stated.
Mr Kyerematen noted that the Continent’s progress depended on the faith Member States have in themselves, saying; “Let us not be haunted by the fear of failure in embarking on this project, but rather be inspired by the prospect of success in realising our vision of a single united market for Africa”.
African Eye Report
