General Secretary of the African Continental Free Trade Area, Wamkele Mene has disclosed that 36 countries have ratified for the trade deal. Out of the 55 countries targeted in Africa, he said that the ratified countries have agreed to the rules of engagement.
Mr Mene made this revelation at the 2021 Ghana International Petroleum Conference. This was under the theme, “Positioning Africa’s Petroleum Downstream for AFCFTA”.
He further insisted that, the ratified countries so far are a commendable feat in the process of promoting intra-African trade.
“We now have 36 out of 55 countries that have deposited their instruments of ratification. [This] means that they have legally accepted the obligations to open their markets, reduce their barriers to trade, to reduce barriers to investment and to adhere to this single set of rules for trade and investment on the African continent. This is an unprecedented achievement for Africa”.
Wamkele Mene
Present also at the conference was Vice President, Dr. Mahamudu Bawumia. He intimated that the success of the AfCFTA depends on the harmony between industry and policymakers.
“The AfCFTA provides industry with a perfect opportunity to contribute towards the realization of a first-world Africa as continental multilateral policies are formed. Success will always depend on the operational framework and the commitment of all actors. The AfCFTA is a decision of the authority of Heads of States, but its success depends on the work of industry and the collaboration of industry and bureaucrats at the implementation level”.
Dr. Bawumia
What does the ratified countries mean for continent?
The pact connects 1.3 billion people across 55 countries with a combined gross domestic product (GDP) valued at US$3.4 trillion.
The AfCFTA agreement will create the largest free trade area in the world measured by the number of countries participating.
It has the potential to lift 30 million people out of extreme poverty. As a result, achieving its full potential will depend on putting in place significant policy reforms and trade facilitation measures.
36 out of 55 countries on the African Continent have deposited their instrument of ratification with the AfCFTA. This means these countries have legally accepted to open their markets, reduce barriers to trade and adhere to the rules of AfCFTA.
The African Continental Free Trade Agreement (AfCFTA) is projected to become the largest free trade area in the world.
Benefits of the AfCFTA
Presently, African countries trade 85% with the world and only 15% within the continent.
The continent’s population iaabout 1.3 billion, with a combined GDP accrued at 3.4 trillion dollars. However, riding on the back of the AfCFTA the continent’s combined GDP will be 29 trillion dollars by 2050.
For this projection to come to fruition, a majority of the 55 countries on the continent must come on board.
West Africa would see a decline of 12 million in the number of people living in extreme poverty. This means more than a third of the total for all of Africa.
