The latest Africa CEO Trade survey report has shown that the African Continental Free Trade Area (AfCFTA) agreement will have an early positive effect on intra-African trade levels on the continent.
The report, which was based on a survey of over 800 executives from 46 countries in Africa who are active on the continent, shows that the positive effect of the AfCFTA will be felt as early as this year, 2022 and next year, 2023.
The survey, which was in partnership with the Pan-African Private Sector Trade and Investment Committee (PAFTRAC) and the African Business magazine, aims to provide the African private sector with a unified voice in informing trade policy at the continental and regional level.
The survey provided a unique insight into the challenges and opportunities that exist in trading in Africa, and served as an excellent barometer for private sector sentiment on AfCFTA.
The survey results were analysed and released in a report during the Annual Meetings of the African Export-Import Bank (Afreximbank), one of the key supporters of PAFTRAC, in Egypt.
Speaking on the survey results, Pat Utomi, chairman of PAFTRAC, noted that the results of the survey showed that the AfCFTA, will in the no distance future, benefit the continent.
“The survey clearly shows that the vast majority of African CEOs believe that the implementation of the AfCFTA will have a positive effect on levels of intra-African trade, even as early as 2022-23.”
Pat Utomi
Utomi discussed the results of the survey while noting that majority of the respondents were confident of the prospects of AfCFTA on the Intra-Africa trade.
“93 percent of CEOs surveyed were confident to some extent that it would have a positive impact, with 26 percent describing themselves as very confident.
“Just 4 percent of participants believe that the AfCFTA will have, or has already had, a negative impact on their businesses.”
Pat Utomi
While intra-African trade and the AfCFTA play a big part in the report, the survey also highlighted how African businesses see opportunities in external markets.
“African companies do not seem to greatly favour exporting to any one region of the world over another. However, the survey showed while Europe appears to be the favoured export destination, the Middle East is an increasingly popular destination given growing trade and investment ties with Africa.”
Pat Utomi
Recently, Mr. Albert M. Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry, made frantic call to make the AfCFTA work. He noted that the expectations are high, “the potential is great, and a lot of modalities are largely in place”.
The African Continental Free Trade Area (AfCFTA) came into force on January 1, 2021, with all African countries, except Eritrea, signing on to the agreement. Over time, ratifying countries pledge to eliminate import tariffs on 97 percent of goods traded between African states.
READ ALSO: SEC Issues New Directive to Toughen Stance on Anti-money Laundering Fight
