AfCFTA to increase the volume of Intra African trade to over 40% by 2045

AfCFTA | INTRA CONTINENTAL TRADE | TO INCREASE

The implementation of the African Continental Free Trade Area (AfCFTA) is likely to increase the volume of intra-African trade to over 40% by 2045.

This was revealed by Hermogene Nsegimana, the Secretary General of the African Regional Standards Organization (ARSO), during the training of African Experts Responsible for Standards Development and Harmonization Required to Facilitate Intra-Africa Trade Under the Africa Continental Free Trade Area.

The three-day training from March 27- 29 at Golden Tulip Hotel in Kampala was organized by the Uganda National Bureau of Standards (UNBS) in conjunction with the African Regional Standards Organization (ARSO) and was attended by over 60 experts from across the African Continent.

Nsegimana noted that so far, 54 African countries have signed the AfCFTA Agreement and 47 Member Countries have ratified it to date, and its implementation will increase the volume of intra-African trade from the current 16% to over 40% by 2045.

“It is thus important that as member countries, we spearhead its implementation to benefit from increased intra-African trade,” he said.

 The training was held under the theme “The Standards we want – African Union Agenda 2063 and African Continental Free Trade Area, “The role of Standardisation and Conformity Assessment during the journey of 41 years”.

 The Experts were drawn from the National Standards Bodies, Academia, Industry, and other Regulatory Bodies responsible for developing and harmonizing Standards which are required to facilitate Intra-Africa Trade under the Africa Continental Free Trade Area (AfCFTA).

Nsegimana speaks during the training

“The training is intended to enhance the skills and capacity of these experts to effectively contribute to the Standard harmonization process at ARSO,” Nsegimana noted.

David Livingstone Ebiru, the UNBS Executive Director said, the capacity building of experts is aimed at responding to the increasing demand for African Countries to increase the volume of trade among themselves, which is currently standing at 16%. 

“UNBS is currently championing the integration of standards at both regional and continental levels when the regional economic blocs such as the East African Community (EAC), the Common Market for East and Southern Africa (COMESA), the Southern African Development Community (SADC), the Intergovernmental Authority on Development (IGAD), and the Economic Community of West African States (ECOWAS) are all aspiring to harmonize standards for their priority commodities to be traded under the African Continental Free Trade Area (AfCFTA) based on having one standard, one test, and one conformity certificate for one market,"

Odrek Rwabwogo, the Senior Presidential Advisor of Exports and Industrial Development urged the standards’ experts to preserve African heritage and culture by prioritizing indigenous standards for African Organic Products.

He said these do not require any modifications to their natural content and nutritional and asked them to avoid the temptation of the emerging influence of technology for genetically modified products.

 He informed the audience about Uganda’s 13 priority commodities that are ready to be traded in the African Market, which include Coffee, Dairy products, Beef, Fish, Cereals, Grains, Horticulture, Pharmaceuticals, and other Agricultural and industrial products.

The Chairman of UNBS National Standards Council Charles Musekuura urged experts to always bear in mind that the success of the Africa Continental Free Trade Area (AfCFTA) is in their hands given that compliance to Quality Standards remains one of the major constraints for African products to access both regional and international markets.

“You should provide solutions to the current African problems of market access, through harmonization of Standards to facilitate and integrate trade and investments within the Continent,” he appealed.

The United Nations Economic Commission for Africa also estimates that AfCFTA will boost intra-African trade by around 40%, with substantial benefits to the transport sectors.

If fully implemented AfCFTA is expected to significantly increase traffic flows on all transport modes: Road, Rail, Maritime, and Air.

It will also increase transport equipment needs significantly for all modes of transport by nearly 50 percent.

AfCFTA is fully implemented intra-African trade in transport services and has the potential to increase by nearly 50%.

Over 25% of intra-African trade gains in services would go to transport alone, and nearly 40% of the increase in Africa’s services production would be in transport.