Despite its promising potential, the African Continental Free Trade Area (AfCFTA) has encountered delays in its implementation. To accelerate its operationalisation, new initiatives are being taken by AfCFTA officials and their partners, with the goal of making it fully functional as soon as possible.
On Tuesday, 17 May 2022, AfCFTA and the International Trade Centre (ITC) announced a strategic partnership aimed at boosting entrepreneurship across the African continent. The agreement, revealed via AfCFTA's official Twitter account, focuses on supporting regional integration efforts in Africa as part of the broader implementation of the AfCFTA.
This partnership between the two institutions aims to "support the overall process of regional integration in Africa" within the framework of the AfCFTA's implementation. According to the information note from the pan-African institution, this agreement will "enhance the competitiveness of micro, small, and medium enterprises (MSMEs), as well as women and young entrepreneurs, enabling them to seize the opportunities offered by the single market and increase their participation in regional and continental value chains."
Since the AfCFTA officially launched in January 2021, progress has been slow. While the majority of African countries have joined, around ten countries are still lagging in their commitment. Nevertheless, the AfCFTA continues to attract significant international attention. Partners such as the United States, the United Kingdom, and China have shown strong interest in the trade zone, with various international institutions and commercial partners investing in the initiative to speed up its implementation.
Once fully operational, the AfCFTA aims to eliminate customs duties on 97 tariff lines over a 13-year period. The agreement is set to establish the largest free trade area in the world, creating a single African market with significant economic opportunities. potential market of 1.3 billion people with a combined GDP of 3,400 billion dollars.
Credit: Agence Ecofin, Jean-Marc Gogbeu