Following the historic signing of the African Continental Free Trade Agreement (AfCFTA) in Kigali, Rwanda in March this year, the African Capacity Building Foundation (ACBF) is calling on African nations to bolster their capacities in readiness for implementation of the ambitious plan.
So far Ghana, Niger, Kenya and Rwanda have ratified the AfCFTA which was signed by 44 African states. The treaty needs to be ratified by 22 states to take effect.
Professor Emmanuel Nnadozie, the Executive Secretary of ACBF, speaking at a panel event during the UN Economic Commission for Africa’s 51st Conference of Ministers, currently taking place in Addis Ababa (Ethiopia), underscored the importance of enhancing skills necessary for the actualization of AfCFTA.
He explained, ‘Capacity is central and is the very heart of implementing, actualising and maximizing the AfCFTA,’ and added, ‘the agreement is a game changer if it is properly implemented.’
According to models and scenarios presented by the ECA, the continent will become the world’s largest trade bloc with a market of 1.2 bn people.
During the event Albert Muchanga, the African Union’s Trade and Industry Commissioner asked ACBF to assist his organization in designing a model that would member countries unlock significant revenue that could arise from removing obstacles to intra-African commerce. He remarked, “Through cross border trade within our continent the AfCFTA stands to unlock some $60bn if it is implemented well.”
David Luke, Head of ECA Africa Trade Policy Centre, argued that business between Africa’s 54 states would increase if the AfCFTA is implemented by all governments.
He observed, “The AfCFTA has the potential to boost intra-African trade by more than 52 per cent through the elimination of import duties alone,” and added ‘We estimate that the benefits will double if combined with trade facilitation measures to further reduce non-tariff barriers.’
Reiterating on the need to prioritise capacity enhancement and skills transfer, Professor Nnadozie said that it is imperative for Africa’s public sector to engage in continuous up-skilling to address the challenges posed by the agreement.
Professor Nnadozie noted, ‘In Africa we do very well when it comes to conceptualizing, designing and even signing agreements and policies aimed at transforming our lifestyles,’ but cautioned, “We, however, miss the mark when the actual work of implementing comes.
This is where we are insisting that skilling African men and women in readiness for the actualizing of the AfCFTA cannot be overlooked.’
The ACBF Executive Secretary also insisted: ‘It is a cross cutting task that needs to be felt across the public and private sectors and even within the academia and civil society all the way to the grassroots.’
According to Zemedeneh Negatu, Global Chairman of Fairfax Africa Fund LLC in the United States, the involvement of the private sector together with the incorporation of skill sets among diaspora Africans should be utilised to give AfCFTA the much needed public ‘buy-in’.
He observed, ‘The active participation of the private sector and Diaspora Africans are crucial in making AfCFTA a reality because they are a source of talent and can often possess the skills and hard-earned experience related to international trade matters.’