With 28 countries having ratified the African Continental Free Trade Area (AfCFTA), e-commerce will now be negotiated as part of Phase II negotiations, alongside intellectual property rights, investment and competition policy.
That was the message from Wamkele Mene, secretary-general of the AfCFTA Secretariat, during his first keynote address at the recent 2020 tralac annual conference.
He said that Covid-19 had exposed Africa’s overreliance on external trade and exports of primary commodities, pointing out that this presented an opportunity to accelerate industrial development action plans.
“The continent needs to restructure and diversify its industrial base and boost intra-Africa trade as the driver of our economies. Industrial development needs to be at the centre of Africa’s recovery plans given the public health and economic crises as a result of Covid-19.”
This would require African countries to dismantle the colonial model, focus on industrial development, attract investment in productive capacity, and establish and implement the required policy and legislative frameworks through the AfCFTA, he added.
Echoing his sentiments about the critical role of trade as a driver of growth was African Union Commissioner for Trade and Industry Albert M. Muchanga.
He said that the AfCFTA was an ambitious project but a necessary undertaking, fit for addressing the trade challenges of the continent. “Trade can be a driver of economic development and poverty reduction, but it is not automatic. Trade policies must be dynamic and inclusive, considering implementation at regional, continental and global levels to produce win-win outcomes.”
He pointed out that the implementation of the AfCFTA would be a process of change management and the biggest challenge was a change in mindset – letting go of the status quo and beginning a new era of economic integration.
Trading under the AfCFTA will commence on 1 January 2021 upon completion of rules of origin and tariff negotiations.
The tralac conference was held under the theme ‘Trade Governance in Africa amidst a Pandemic and other Global Challenges’ and brought together hundreds of participants (panellists, moderators and attendees) from multilateral, continental and regional organisations, and the private sector to discuss trade governance matters as they pertain to Africa.
