By Abba Hamisu Sani
Africa-Press – Nigeria. African Countries have less business transactions among themselves compared to other continents like Europe ,Asia and America.
The continent has about 1.3 billion population with growth Domestic product of about 3.4 trillion US Dollar.
On 21 March 2018 African countries signed an agreement that will remove the business bearers between the African countries.
The aim of African Continental free Trade Area – AfCFTA
The overall aims of AfCFTA are to increase socioeconomic development, reduce poverty, and make Africa more competitive in the global economy.
The United Nations Economic Commission for Africa estimates that AfCFTA will boost intra African trade by 52 percent by the end of 2022.
The African Continental Free Trade Area is also an ambitious trade pact that aim at forming the world largest free trade area by creating a single market for goods and services for almost 1.3bn people across Africa and deepening the economic integration of Africa.
The trade area could have a combined gross domestic product of around $3.4 trillion, but achieving its full potential depends on significant policy reforms and trade facilitation measures across African signatory nations.
The AfCFTA initiative has again produce the enabling environment that reduce tariffs among members and covers policy areas such as trade facilitation and services, as well as regulatory measures such as sanitary standards and technical barriers to trade.
The agreement which was brokered by the African Union (AU) was signed by 44 of its 55 member States in 2018. has continue to make more impact on African economy.
As of May 2022, 43 of the 54 signatories had deposited their instruments of ratification with the chair of the African Union Commission, making them state parties to the agreement.
The AfCFTA Secretariat is an autonomous body within the African Union based in Accra Ghana and led by a secretary general who is responsible for coordinating the implementation of the agreement.
What role should Nigeria ,South Africa and Algeria play towards achieving AfCFTA’s Objectives?
The Economist says Nigeria,South Africa,Algeria and Egypt are expected to play leadership role and provide enabling environment that will facilitate businesses and movement of goods and Services within the African Countries considering their Economic strength in the Continent..
Dr. Abdussalam Muhammad added that if these four Countries put the necessary effort the initiative will create more employments and boost the domestic revenue of all member States and Africa in general .
Dr. K’ani stated that the trade between African Countries stand at less than twenty percent while with other continents like Europe Asia and America is eighty percent .
” from what is on the ground the African nations need to wake up and do all the needful to achieve what is contained in the African Continental free trade Area agreement ”
The Executive Director Fiscal Discipline and Development Advocacy Centre (FIDAC) also emphasised the need of Nigeria ,Algeria ,South Africa and Egypt to provide the needed leadership in making this giant initiative a game changer for African Economy which heavenly rely on other Cotenants in all aspects.
He said these four Countries considered as giants of Africa should also enacted policies that will promote import and export among African nations and transfer of technical services among them selves.
Dr. K’ani called on all the signatory nations to consider the comparative advantages of trading within Africa as it will enhance the security and economic autonomy of the region which has vast human and natural resources
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