AWARENESS STRATEGY BECKONS ON INTRA-AFRICA TRADE

 

BY GRACE MACHA IN ARUSHA

An awareness strategy targeting the private sector on the African Continental Free Trade Area (AfCFTA) protocols is set for launch.

It will be unveiled during the forthcoming AfCFTA business forum tentatively slated for Cape Town, South Africa later this month.

The strategy is the brainchild of the AfCFTA secretariat and the East African Business Council (EABC), a private sector association in the region.

Also roped in are the Southern African Development Community (Sadc),the Common Market for Eastern and Southern Africa (Comesa) and Economic Community of West African States (Ecowas).

"The awareness strategy aimed at scaling up sensitization of the private sector on the AfCFTA protocols and its benefits", the EABC said in a statement.

The next AfCFTA Business Forum, which will draw business leaders across the continent, is  expected to take place from 15th to 19th April 2023

The Accra-based AfCFTA secretariat says it is ready to support not only the EABC, Sadc, Comesa and Ecowas business councils but others that are ready for engagement.

"Any other (business council) that wants to join in establishing a formal engagement platform with us on joint implementation of the agreed matters", the statement added.

The business forum is also expected to discuss mobilization of resources to support regional business councils on AfCFTA awareness raising tasks.

AfCFTA secretary general  Wamkele Mene said awareness creation on African trade protocols would benefit from technical support from the African Development Bank (AfDB).

The  regional  business councils' summit is also geared to engage governments on the status of the AfCFTA implementation.

According to Mr.Mene, the long term desire is to establish a One Stop Centre to create efficiency in doing business across the continent.

This would be followed by the establishment of data centers to access market-related information across the vast  continent.

He added that the AfCFTA secretariat was determined to support the EABC in its efforts to establish a Regional Data Center.

The envisioned facility will have outlets in all the seven East African Community (EAC) partner states.

" It will enable the private sector to access market information on product availability and access while trading through the AfCFTA", he said.

Recently, the EABC launched AfCFTA Adjustment  which will be headquartered in Kigali, Rwanda.

The Fund is intended to support the AfCFTA state parties to adjust to the new liberalised and integrated trading environment established under the trade pact.

The Adjustment Fund addresses, among other things, potential tariff revenue losses, infrastructure deficits to facilitate trade growth and possible supply chain disruptions that States Parties may face in the implementation of the AfCFTA agreement.

The AfCFTA Adjustment Fund consists of three sub-Funds namely, the Base Fund, the General Fund, and the Credit Fund.

The Base Fund will utilise contributions from AfCFTA state parties as well as grants and technical assistance to address tariff revenue losses that would result from the implementation of the AfCFTA agreement.

The General Fund will finance the development of trade-enabling infrastructure while the Credit Fund will be used to mobilise commercial funding to support both the public and private sectors.