The global health pandemic may be the very challenge that could stifle Ghana seeing the optimal benefits of the African Continental Free Trade Area (AfCFTA) agreement, especially being a host country.
According to the Minister-designate of Foreign Affairs, Shirley Ayorkor Botchwey, although the privilege of being the host country is a commendable feat, Ghana has a long way to go in seeing the possibilities inherent in AfCFTA materialize in Ghana.
“Ghana’s successful candidature to host the AfCFTA secretariat will go a long way to help the country. It will impact our economic development. As the host country, there are several benefits, including employment, when it is at its full capacity of operation.
“We have a head start, as the hosts, for our private sector to take advantage of as well. But for COVID-19, we would have seen a steady influx of international visitors for conferences and other events”.
Shirley Ayorkor Botchwey
In early March 2020 AfroChampions AfCFTA Year Zero Report which was an assessment and ranking of African governments according to their level of commitment to the African Continental Free Trade Area (AfCFTA) and their readiness for Start of Trade found that, despite the great enthusiasm for AfCFTA among citizens and businesses, the continent as a whole had a commitment and readiness level that was below 50%.
It asserted that, COVID-19 firefighting means there is significantly reduced attention span for AfCFTA issues among governments, policymakers and the private sector and will likely worsen some countries commitment and preparedness to implement the AfCFTA.
AfroChampions explained that, “COVID-19 is currently destroying much of the African private sector”.
Among recommendation for nullifying the effects of the pandemic on the single market trade, it suggested that each of the member states that have ratified should be made to present a COVID-19 adjusted plan to project how they plan to catch up in the post COVID-19 period.
Countries such as South Africa, had its President Cyril Ramaphosa mentioned to appoint Special AfCFTA Envoys to assist the AfCFTA Secretary General to coordinate with governments towards salvaging and keeping the process on track. Africa must be proactive and united in fighting the pandemic; no country should be left behind in the fight.
Economic relief during the crisis, it suggested is paramount and should be coordinated to include trade in goods, critical to the fight against COVID-19 and also planning for Post-COVID-19 economic and trade stimulus, should begin now even as we fight the crisis so that countries will be ready for implementation once crisis eases.
According to AfroChampions, Afreximbank’s US$3 billion COVID-19 facility and AfDB’s US$10 billion facility are laudable steps. It further noted these facilities should be targeted at national-level industries and regional value chains that are critical to the fight against the pandemic such as pharmaceuticals, medical equipment, food, agriculture, household consumables, key industrial inputs and transportation.
Moreover, guidelines & Financing for a Continental Private Sector & Jobs Recovery Plan which countries can adapt locally, AfroChampions said, must be jointly coordinated by AU, AfDB and Afreximbank in partnership with governments and African business associations.
