Policy and advocacy think tank, AfroChampions wants African Trade Ministers to convene a virtual summit under the aegis of the African Union to keep on track the implementation of the African Continental Free Trade Area (AfCFTA) amidst the Coronavirus scare.
According to the policy group, this high-level meeting would be an opportunity to discuss practical measures to pursue African economic integration despite the COVID-19 pandemic to take advantage of the existing AfCFTA provisions to respond to the health emergency and to also consider a broader strengthening of capacities and infrastructure to help Africa recover from the crisis over the long term.
In its formal appeal, the AfroChampions Initiative proposes the summit to also include economic decision-makers, heads of African multinationals and business associations as well as representatives of the continent’s major financial institutions.
The agenda according to the policy think thank should be concise and action-oriented to address operational measures such as the removal of tariff and nontariff barriers for the free movement of goods, medical supplies, and commodities required to limit the spread of the coronavirus as well as its effects on communities.
It is also proposing overall strategic measures such as the continuation of the existing negotiations on key AfCFTA aspects operationalization of the AfCFTA Secretariat, prioritization of some initial implementation protocols starting July 2020 that will help Africa recover quicker from the economic disruptions of COVID-19.
“Some observers believe that the AfCFTA is meant to fail because the required infrastructure is not yet in place. COVID-19 is a reason to accelerate AfCFTA; not slow it down as is now the case. Being confronted with emergency forces us to move forward. In the current crisis, we can implement measures in the health sector to support local production of equipment and treatments, boost orders of ‘made in Africa’ pharmaceuticals and medicines, optimize transport and logistics costs, and facilitate deliveries from one point to another in spite of travel restrictions. On all these points, the AfCFTA can provide concrete answers. From this test in the health sector, we can draw useful lessons for other sectors”, Paulo Gomes, Vice President of the AfroChampions Initiative and Former Executive Director at the World Bank said.
While hoping that the proposed virtual summit of Trade Ministers will be confirmed soon, the AfroChampions Initiative and its research department have developed the first set of proposals for discussion on how the AfCFTA can adjust to COVID-19 disruptions to stay on track, as well as an indicative assessment of African states’ readiness ahead of the practical opening of the African common market.
Several business leaders from the AfroChampions network and regional business associations have also been approached to contribute to this agenda.
About the AfCFTA
The main objectives of the African Continental Free Trade Area (AfCFTA) are to create a free trade area covering goods and services on the African continent, with free movement of persons and investments, and thus pave the way for deeper integration on the continent including the customs union and the single market.
It will also expand intra-African trade through better harmonization and coordination of trade liberalization and facilitation across the RECs and across Africa in general.
The AfCFTA is also expected to enhance competitiveness at the industry and enterprise level through the exploitation of opportunities for scale production, continental market access and better reallocation of resources.
The AfCFTA agreement has been finalized by African Union Ministers for Trade on December 4, 2017, and signed by 44 African states on March 1, 2018, in Kigali under the aegis of the Rwandan Presidency of the African Union. Following the process to gather signatures and ratifications, it was adopted by the African States in July 2019, while discussions will continue on additional protocols and implementation processes until the end of 2020.