Mr Wamkele Mene, the Secretary-General of the African Continental Free Trade Area (AfCFTA), has asserted that the rapid economic integration of the continent of Africa will depend on how countries within the continent prioritise AfCFTA agreements over bilateral ones with third-party states.
Speaking at a press briefing on the outcome of the 8th meeting of the Council of Ministers responsible for Trade in Accra, Mr Wamkele Mene averred that the AfCFTA agreement has made provision for pre-existing agreements among members, members with third parties, as well as future trade agreements with third parties outside of the continental trade area.
Mr Wamkele Mene indicated that third party agreements are permissible subject to certain conditions which included the commitment to support regional integration and the provision of the same or better preferences for member countries of AfCFTA.
The AfCFTA Secretary-General, therefore, advised member countries, in exercising their economic sovereignty, to ensure that their economic partnerships or trade agreements with countries outside the free trade area, do not undermine the objectives the African Continental Free Trade Area.
“The Heads of States have recognised the importance of integration on our continent, and they have said that there is no country that can be stopped from negotiating with others outside the continent. However, priority must be given to consolidating the AfCFTA where there are outstanding negotiations to conclude and move together in unity”.
Mr Wamkele Mene
Mr Ebrahim Patel, the Chairperson of the Council of Ministers and South Africa’s Minister of Trade and Competition, also noted that the focus of African countries should be improving intra trade, since the continent has one of the lowest levels of intra-trade on the globe.
“…All the trade we do among ourselves is 18 per cent while more than 70 per cent of all trade among Europeans are with other European countries. Therein, lies the opportunity for the continent to deepen its relations with one another.”
Mr Ebrahim Patel
Recently, Mr Wamkele Mene, revealed that the cost involved in converting African currencies into the dollar stands at 5billion dollars annually.
To address this issues, and as part of efforts to make the AfCFTA work, a new payment system, Pan African Payments and Settlements has been launched to assist member states to trade using a single currency. This, he stated, will resolve the challenges of using third currency to trade and will boost trade among the continent.
The general objectives of the AfCFTA agreement, which was signed in Kigali, Rwanda in 2018, include the creation of a single market for goods and services, and the facilitation of the movement of persons.
It is also to create a liberalised market for goods and services through successive rounds of negotiations and promoting and attaining a sustainable and inclusive socio-economic development, gender equality and structural transformation of the State Parties. Other objectives include: promoting industrial development through diversification and regional value chain development, agricultural development, and food security.
Another key objective is resolving challenges of multiple and overlapping memberships and expediting regional and continental integration processes.
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