On Friday, 7 October 2022, the African Continental Free Trade Area (AfCFTA) Secretariat launched the "Guided Trade Initiative," allowing seven African countries to begin trading under preferential tariffs. This move is seen as a significant step towards realizing the AfCFTA's vision of fostering economic integration and boosting intra-African trade.
The participating countries—Ghana, Cameroon, Rwanda, Kenya, Mauritius, Egypt, and Tanzania—are now eligible to trade 96 products freely under tariff preferences. These products include pharmaceuticals, rubber, pasta, tea, coffee, steel, and wood, all of which meet the required rules of origin.
Speaking at the official ceremony in Accra, Ghana, AfCFTA Secretary General Wamkele Mene highlighted the historical significance of this development. "This is the moment so long awaited by the founding fathers of the Organisation of African Unity. We are connecting East Africa to West Africa, North Africa to Southern Africa. Today marks the first journey, and I hope that in fifteen years, we will have succeeded in lifting millions of Africans out of poverty.", he stated.
"We are connecting East Africa to West Africa, North Africa to Southern Africa [...] We have made the first journey today, and I hope that in fifteen years‘time, we will have succeeded in lifting millions and millions of Africans out of poverty", he added.
Ghana's Minister of Trade and Industry, Alan Kyerematen, noted that the Guided Trade initiative is "symbolic" in many ways. "This initiative symbolises the fact that the AfCFTA does not just exist on paper but is a reality. We are moving from words and negotiations to action. It also symbolises the fact that the African governments that took part in the negotiations to set up the AfCFTA are now giving way to the private sector to make it a reality", he stressed.
According to a press release issued on 6 October by the AfCFTA secretariat, the initiative on guided trade is designed to "send a positive message to African economic operators" and to "test the operational, institutional, legal and political environment within the AfCFTA framework".
Credit: AgenceEcofin