Africa-Press – Mozambique. THE East African Business Council (EABC) has singled out compliance to rules of origin as a restrictive aspect to trading.
The regional business council said here recently that small-scale women cross-border traders bore the most brunt, as far as rules of origin was concerned.
EABC Chief Executive Officer John Bosco Kalisa underscored the need for a flexible, clear predictable rules of origin for business to benefit from the agreement which advocates the elimination and reduction of tariff and non-tariff barriers amongst the 54 countries that agreed to be members of the bloc by providing a single market for goods and services.
“The current structure on the rules of origin is restrictive in nature,” he said when speaking at a Webinar on for the African Continental Free Trade Area (AfCFTA) Country Business Index Report organized by Economic Commission for Africa (ECA).
Mr Kalisa further warned that intra-regional trade is sliding back below 20 per cent due to persistent tariff and Non-Tariff Barriers imposed on both large and micro small medium enterprises.
The EABC boss recommended for sensitization campaigns on the AfCFTA, harmonization of standards on sanitary and phytosanitary (SPS) measures and improving transport and logistics on the continent.
The ACBI focuses on business perceptions of trading under the Free Trade Area by looking into constraints and challenges.
It calls for more support to equip enterprises to identify strategic interest and market opportunities in light of the AfCFTA.
ECA Deputy Executive Secretary and Chief Economist, Hanan Morsy on her part noted that intra African trade was a key driver in building forward for a green, inclusive and resilient Africa.
According to her, AfCFTA had huge potential to drive sustainable development.
ECA research forecasts that in 2045 Gross Domestic Product will be $55 billion higher and welfare will increase by $3 billion through the implementation of the AfCFTA.
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