Business blocs in Africa have vowed to take lead in championing the African Continental Free Trade Area (AfCFTA) as they eye enormous opportunities that will come with the initiative. The blocs that form the African Tripartite Business Council, are also set to lead the inclusion of private sector policy proposals into the negotiations and the agreements of AfCFTA. They include East African Business Council (EABC), COMESA Business Council and SADC Business Council. During their recent meeting in Kigali, the Executive Director of EAC Business Council, John Bosco Kalisa, called upon member states to ratify the Tripartite Free Trade Area to achieve the threshold of 14 ratifications required to enable the agreement to enter into force. “The African Tripartite Business Council will put forward joint private sector policy positions to the AfCFTA secretariat in Ghana and tripartite ministerial council meetings in order to accelerate the implementation of the agreements,” Kalisa said. The Acting CEO of COMESA Business Council, Dickson Poloji, additionally said that the implementation committees of the AfCFTA should be co-chaired by the private sector. “It is important for the private sector to be knowledgeable of the trade instruments of rules of origin, standards and dispute settlement mechanism under the AfCFTA” Poloji said. Peter Varndell, the Executive Director of SADC Business Council, further said that the African Tripartite Business Council will improve coordination and development of positions on AfCFTA policy formulation and negotiations. According to EABC Vice Chairman, Dennis Karera, “Trading under AfCFTA is the answer for Africa to respond better to external shocks of conflict, Covid-19 and climate change.” Russia Ukraine war Experts note African countries’ dependency on imports for food and energy and how they will be hurt by higher global energy prices due to the Russia Ukraine war. Rodgers Mukwaya, the economic affairs officer at the Eastern Africa Regional Integration and AfCFTA section for the sub-regional office for East Africa, urged African central banks to control inflation without adversely affecting GDP growth and countries have to leverage the AfCFTA, to create regional value chains. “The COVID pandemic and the Ukraine crisis have disrupted global supply chains. As a result, firms and nations are moving away from global to domestic and regional supply chains,” Mukwaya said. According to members of the council, East Africa loses USD 500 million each year due to illicit trade. Therefore, among other resolutions outlined to move the AfCFTA agenda forward include; Sustaining political goodwill among the countries, capacity building for youth in technology, African local content policy government procurement to ease the trade and an agreement to improve trade facilitation, investments in cross border infrastructure, elimination of non-tariff barriers and resource coordination. Members also agreed on the finalisation of national AfCFTA strategies, improving industrial productive capacities, liberalisation of air transport services in Africa, capacity building for youth, women and SMEs. As well as enhancement and mapping of skills, industrialisation and value addition, participation in AfCFTA business forum in Dakar and regional response mechanism to global shocks. The council will also emphasise on digital trade to promote youths and the emergence of African-owned e-commerce platforms.
