Hopes high as AfCFTA launches Guided Trade Initiative

The African Continental Free Trade Area (AfCFTA) Secretariat, on October 7, officially launched the Guided Trade Initiative expected to set the tone of implementing commercially meaningful trade across the continent. The initiative seeks to test the operational, institutional, legal and trade policy environment under the AfCFTA, and to send an important positive message to the African economic operators. So far, eight countries are participating in the pilot phase. They include; Cameroon, Egypt, Ghana, Kenya, Mauritius, Tunisia, Tanzania and Rwanda. Participation in the guided trade initiative depends on whether countries have submitted their tariff schedules in accordance with the agreed modalities to trade preferentially amongst themselves, according to the Secretariat. Since the announcement of the pilot phase, some countries have started exporting their first consignments of products under the continental trade area policy frameworks. Rwanda shipped its first coffee to Ghana on September 30. Wamkele Mene, Secretary General of the AfCFTA Secretariat, said the launch was marked with a total of 96 products traded by seven countries and the number is expected to “double or triple” by next year. “It is more than just a legal test, more than just a ratification, it is Africa’s economic development at stake. I am extremely proud that we are able to demonstrate to ourselves as Africans that we have the capacity and inclination to achieve this,” he said. In his remarks, the Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, emphasized the need to have shared interests as the countries pass to action in implementing the AfCFTA. “As Africans, we have regions, nations, and I understand our differences but our shared interest should be working as one continent. Working efficiently requires implementing efficiently which is driven from planning efficiently,” Ngabitsinze said during the launch. Ghana’s Minister of Trade and Industry, Alan Kyerematen, said that the guided trade initiative shows that African governments that have been involved in negotiations of the AfCFTA are now giving way to the private sector to make it a reality. The AfCFTA Guided Trade Initiative is expected to serve as a gateway to encourage continued trade under the AfCFTA, resulting in a multiplier effect and increased opportunities for SMEs, youth and women in trade and ultimately establishing sustainable and inclusive economic development. Recently, Briggette Harrington, CEO of Igire Coffee Limited, the first Rwandan company to trade under the agreement, told The New Times that local products are ready for the continental trade, however, there remain areas of improvement. She encouraged players in the private sector to inform themselves about how they can leverage the opportunity and expand to other markets. The event took place at the margins of the 10th Meeting of the Council of Ministers, the latter being held from October 7 to 8. AfCFTA was signed in March 2018 and launched in January 2021, creating a single market for goods and services of almost 1.3bn people across Africa.

News

Hopes high as AfCFTA launches Guided Trade Initiative