TIG Post

Tag: AfCFTA

  • Ghanaian businesses need support to win under AfCFTA – AGI

    Business setbacks such as high cost of power, access to capital, among others, remain a concern for Ghanaian industries, and if the government wants to “win” with the African Continental Free Trade Area (AfCFTA), it needs to ensure businesses are supported to become competitive, the Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Cleanse Akpeloo, has said.

    Government has provided several interventions by way of stimulus packages under the Coronavirus Alleviation Programme. However, the AGI reckons more assistance needs to be provided to sustain businesses when the AfCFTA takes off.

    The Secretariat of AfCFTA has officially opened in Accra, a major milestone in the full implementation of the free trade agreement.

    Trading under the AfCFTA, which was originally planned for 1 July 2020 and delayed because of the COVID-19 pandemic, will now begin in January 2021, according to the African Union.

    Speaking in Accra at the launch of the upcoming 4th Trade and Finance conference, dubbed “The AfCFTA edition”, Mr. Akpeloo said: “We are very thankful for the government for having the secretariat here, and to be fair, government has also reduced the cost of power somehow; but we are asking for further reduction to be competitive across the continent. For us to win, we need to operationalise the many policies that we are talking about.”

    According to him, Ghana has competitive advantage in many economic sectors that should enable it succeed with the AfCFTA.

    “Clearly, if you take the salt industry, both the petrochemicals and domestic users need salt. Ghana and Senegal are one of the two biggest producers of salt on the continent. In areas like electricians, metal work and others, Ghana clearly has competitive advantage; but it is not enough to have competitive advantage. You need to have systemic programmes and policies that allow you to harmonise and become a leader in this space. We are saying industry needs to be supported greatly by government to take advantage of this.”

    The upcoming conference is in partnership with the Accra Metropolitan Assembly (AMA), and the mayor of Accra, Mohammed Adjei Sowah, is hopeful the city will be ready for activities that come with the implementation of the AfCFTA.

    “Accra remains the main trading and commercial centre of this country, and over the years we have been striving to make it the gateway to Africa. It is this sort of orientation that inspired the President to spearhead the location of AfCFTA in Accra, and we need to take full advantage of this,” he said.

    The Ghana International Trade and Finance conference takes place from October 27-28 this year. It is expected to focus on tariff reforms, physical connectivity, infrastructure, port harmonisation, a single continental digital platform, and a cyber-security platform.

    Source: Business 24

  • Ghana International Trade and Finance Conference slated for October 27

    The Ghana International Trade and Finance Conference (GITFIC) in partnership with the Accra Metropolitan Assembly (AMA) will a host dialogue on the African Continental Free Trade Area (AfCFTA)on October 27, 2020.

    The AfCFTA dialogue is also in collaboration with the Association of Ghana Industries (AGI) to raise awareness, empower and encourage all Member States to take actions necessary to build the logistics and the infrastructure critical for the successful outcome of the Free Trade.

    Mr Mohammed Adjei Sowah, AMA Chief Executive Officer speaking at a press conference to announce a new date for the 4th GITFIC event postponed from April 9-10, 2020 due to COVID-19 to October 27 and 28.

    The dialogue is on the theme: “Optimizing AfCFTA for Africans: The Role of Logistics Infrastructure.”

    The event is intended to display the urban economic resilience of Accra in particular and Ghana as a whole in the face of a global pandemic that has ravaged most economies.

    He said the event seeks to discuss the details of preparations being made by Members States of the African Union in building up the necessary logistics and infrastructure identified as the main challenge in implementing the Protocols of the AfCFTA.

    Mr Adjei said through the medium of the conference: “we also hope to alert corporate Ghana in particular and Africa in general about the networking and investment opportunities the AfCFTA will create in Africa and to empower the private sector take advantage of those opportunities.”

    He said the City of Accra has deep historical roots in commerce and has always remained a major trading center in Africa; “Our City is well equipped with the infrastructure, governance framework and the markets required to provide the leadership in AfCFTA implementation.”

    The CEO said over the years, Accra has developed the right policies and enabling environment to represent both an investment destination and gateway to the African markets.

    He said it would also enable participants to learn about the preparedness of sister African Countries for the commencement of trade in January 2021.

    “We will learn about trade barriers and restrictions, which will be lifted through the commencement of the AfCFTA and market opportunities it can create for your businesses in an enhanced African supply chain,” he said.

    Mr Tsonam Cleanse Akpeloo, the Association of Ghana Industries Accra Chairman and Head of Industries, said Ghana needs to position itself well enough to protect its local industries with the coming in force of the AfCFTA.

    He said this was because “we will wake up one day and Ghana will be flooded with products that are cheap and we will be helpless.”

    He said the government needed to put in place measures to make the Ghanaian market competitive and suggested that the government looks to industries like textiles, salt, and pharmaceuticals as possible launching pads.

    He called on businesses to get ready and take advantage of the implementation of the AfCFTA, indicating that they should leverage on technology infrastructure and e-commerce to expand.

    On regulatory framework, Mr Akpeloo said all laws must be harmonized with international laws together with standardization.

    Mr Selasi Koffi Ackom, Chief Executive Officer of GITFIC said the conference would be educative, be directive, be authoritative and most importantly, it would expose participants to all there is to know on the African Continental Free Trade Area.

    He said speakers on the 4th Conference would be from diverse technical fields from more than five countries including Nigeria, Gambia, Sudan, Morocco, Sierra Leone, and Liberia.

    The CEO said the conference would border on the important and delicate sub-themes including physical connectivity, digital connectivity, infrastructure deficits, tariff reforms, non-tariff reforms, port Harmonization, and a single continental payment harmonization system.

    Other are a single continental digital platform, a harmonized trading platform for Member States, a harmonized continental cybersecurity system, and standardization of Member State trading protocols.

    Source: GNA

  • Akufo-Addo to handover AfCFTA Secretariat building to the African Union Commission

    President Nana Addo Dankwa Akufo-Addo will on Monday, 17th August, 2020 commission and hand over the African Continental Free Trade Area (AfCFTA) Secretariat Building to the African Union Commission (AUC) in Accra.

    It will be recalled that at the 12th African Union (AU) Extraordinary Summit held in Niamey, Niger in July 2019, Ghana was selected to host the Secretariat of AfCFTA by Member States of the African Union. As part of the obligations and commitments under the Host Country Agreement, Ghana is required to provide a fully furnished office complex as the Headquarters for the AfCFTA Secretariat and an official residence for the Secretary-General.

    The AfCFTA Secretariat will administer the free trade agreement creating a Single Market for 55 countries with a combined population of 1.2 billion and a total Gross Domestic Product of about US $2.5 trillion. So far, 54 countries have signed the Agreement with 28 countries ratifying same.

    The hosting of AfCFTA Secretariat in Ghana will promote Ghana as an attractive regional and investment hub in Africa, boost economic activities, and provide job opportunities for Ghanaians.

    The handing over ceremony will be attended by the Chairperson of the African Union Commission, the newly elected Secretary-General of AfCFTA, the Speaker of Parliament, Chairman of the Council of State, Senior Government Officials and members of the Diplomatic Corps. Due to the COVID-19 pandemic, a limited number of other guests from the Private Sector and other Public Sector Organisations have been invited to witness the ceremony.

    The ceremony will be broadcast live through local and international television networks and social media platforms to a global audience.

    Source: Kasapa FM

  • AfCFTA to commence operation in January 2021 – Alan Kyerematen

    The African Continental Free Trade Area ( AfCFTA ) whose Secretariat is hosted by Ghana in Accra, is to commence operation by January 2021.

    AfCFTA was created by the African Union (AU) to facilitate and boost trade among member states of the Union.

    The Minister of Trade and Industry, Alan John Kojo Kyerematen made this known when members of the Committee on Foreign Affairs of Parliament paid a visit to the AfCFTA Secretariat.

    Mr Alan Kyerematen said “originally the AfCFTA was scheduled to be officially commissioned on 31st March 2020 for commencement of trading among member states under the agreement on 1st July 2020 but the arrangements were rescheduled following the outbreak of Covid19.”

    The Minister said “African Council of Ministers of Trade who will have oversight responsibility over the AfCFTA will hold a meeting in August 2020 , to be followed by a meeting of African Heads of State in December 2020 to approve outstanding work on rules of origin and market access offer before AfCFTA commences operation in January 2021.”

    The Minister said as part of Ghana’s obligation to host the Secretariat of AfCFTA, the country is required to provide a fully furnished office space in a secured and easily accessible location for the Secretary General of AfCFTA and also provide a fully furnished permanent residence for him (the Secretary General of AfCFTA ).

    In addition, Ghana is required to grant diplomatic immunity to staff of AfCFTA and their dependents.

    In bidding for the offer to host the Secretariat, the Minister said Ghana was required to offer US$ 10 million as settling in grant facilitate the setting up of the AfCFTA Secretariat .

    The Minister said the AfCFTA is a tremendous opportunity for Ghana and all AU member states.

    Chairman of the Committee on Foreign Affairs of Parliament and MP for Nsawam/Adoagyiri Hon Frank Annoh-Dompreh said the Committee will do all it can to support the Ministry of Trade and Industry to ensure the successful completion of preparation towards the commencement of operation of the AfCFTA.

    The Deputy Minority Ranking Member on the Committee on Foreign Affairs and MP for Jirapa, Hon Dr Francis Dakura described AfCFTA as a fantastic opportunity for the continent.

    Source: Peace FM

  • African trade deal could lift millions out of poverty – World Bank

    A pandemic-delayed African free trade deal, if fully implemented, could boost incomes across the continent, pull millions out of poverty and cushion against the negative fallout from COVID-19, the World Bank wrote in a report on Monday.

    The African Continental Free Trade Area (AfCFTA) was due to come into force on July 1, but that proved unworkable after the virus forced widespread border closures and halted talks between governments over the removal of tariffs.

    It may now begin operating from the start of 2021.

    The pandemic is expected to cost Africa up to $79 billion in lost economic output this year alone with the additional risk of millions of job losses.

    “In this context, a successful implementation of AfCFTA would be crucial,” the report said. “(It) is a major opportunity for Africa, but implementation will be a significant challenge. Lowering tariffs is only the first step.”

    Once in force, the AfCFTA will bring together 1.3 billion people across 55 countries with combined gross domestic product of $3.4 trillion.

    World Bank researchers estimated the trade deal would lift 30 million Africans out of extreme poverty and 68 million from moderate poverty by 2035.

    Full implementation could increase real income in Africa by 7%, or nearly $450 billion, mainly by reducing the cost of trade through the elimination of tariffs and red tape.

    Ivory Coast and Zimbabwe – countries with the highest costs of trade – could see income gains of 14%.

    The volume of total exports would increase by almost 29%, according to the World Bank, with exports between African nations rising 81%. Exports to non-African countries would increase 19%.

    “The report estimates that compared with a business-as-usual scenario, implementing AfCFTA would lead to an almost 10% increase in wages, with larger gains for unskilled workers and women,” the report said.

    Source: reuters.com

  • Ghana and Mexico hold consultation on strengthening bilateral ties

    Ghana and Mexico, Wednesday, held their second consultation under the Bilateral Political Consultations Mechanism towards building a stronger bond.

    Mr Charles Owiredu, the Deputy Minister of Foreign Affairs and Regional Integration co-chaired the meeting with Mr Julian Ventura, his Mexican counterpart.

    They discussed regional and global issues of common interest and reiterated the commitment of their respective governments to multilateralism and international law, a statement copied to the Ghana News Agency, in Accra, by the Foreign Affairs Ministry, on Wednesday, said.

    The meeting, held via video conferencing, was a follow up to the first, held in Accra in August 2019.

    “It was an important step towards forging a stronger and sustainable political dialogue between the two countries,” it said.

    “Since then, the level of collaboration has been strengthened over a broader range of issues spanning education, agriculture and commerce” .

    The two sides also supported the development of closer links between their societies.

    The deliberations, the statement said, highlighted the establishment of the African Continental Free Trade Area (AfCFTA) Secretariat, in Accra, and agreed on the need to maximise its benefits by leveraging the close ties they shared.

    They also charged their respective authorities to explore concrete cooperation schemes, including through the use of virtual meetings and seminars, it said.

    “While discussing global efforts against the COVID-19 pandemic, the two Deputy Ministers agreed on the need to maintain a spirit of mutual solidarity and stressed the urgency of attending to the needs of the most vulnerable populations,” it said.

    The statement said Mexico, as a recently-elected non-permanent member of the United Nations Security Council for 2021-2022, reiterated its commitment to act with transparency and openness while maintaining a close dialogue with its African partners, in particular, on the issues on the Council´s agenda that most directly affected them.

    It said the two governments agreed to maintain frequent informal consultations among the relevant offices in their respective capital cities, as well as between their Permanent Missions to the United Nations in New York.

    Deputy Secretary Ventura reiterated the standing invitation for Mr. Owiredu to visit Mexico City as a reciprocal visit to that of his visit to Ghana, to hold further consultations under the bilateral mechanism.

    Source: GNA

  • E-Commerce protocol incorporated into AfCFTA phase III

    Despite a potential delay regarding Phase I implementation of African Continental Free Trade Area (AfCFTA), the African Union Commission has incorporated an Electronic Commerce (e-commerce) protocol into the pan African trade agreement.

    The acceptance of the e-commerce protocol came about during the 33rd AU Ordinary Session recently held in Ethiopia. Phase III protocol is expected to kick-in immediately after conclusion of Phase II negotiations, which include competition policy, intellectual property rights and investment protocol.

    With the increasing need and demand for products online in the e-commerce industry as a result of the novel Coronavirus (COVID-19) pandemic which is making it difficult for people to transact business physically, most businesses in Ghana and beyond are using online commerce to remain in business and this indeed delivers comprehensive benefits to both counterparties in commerce transactions.

    The use of e-commerce within AfCFTA is made even more imperative by the poor intra-continental transport links which makes travel across the continent both logistically challenging and inordinately expensive. Travelling by air between many African countries requires a transit in Europe; the long distances involved makes inter sub-regional road transport impossible; and there are very few cross-border railway links, such as are common in Europe..

    Since Ghana is hosting the AfCFTA Secretariat, is it expected that the e-commerce protocol is implemented to the letter locally, to set a good example and this would benefit many Ghanaian business entities.

    Importantly, the Executive Council of the AU has directed the AU Commission to embark on preparations for the upcoming negotiations and to mobilize resources for capacity building for African trade negotiators to be involved in the negotiations of e-commerce legal instruments for AfCFTA.

    “Member States must critically review approaches that are being made to them by bilateral partners to enter into bilateral e-commerce legal instruments with them in order to ensure that Africa is able to negotiate and implement an AfCFTA protocol on e-commerce such as data and products being traded under e-commerce.

    “This will promote the emergence of African owned e-commerce platforms at national, regional and continental levels”, says an AU report.

    Following a summit convened by the World Economic Forum (WEF) and the International Trade Centre (ITC) last year, steps were initiated to have e-commerce protocol incorporated into the agreement.

    This follows a release of the African E-Commerce Agenda an eight step action plan put forward by the WEF and ITC as they unveiled a roadmap on e-commerce for African governments.

  • Implementation of AfCFTA faces delay

    Approval of phase one operational instruments required for the start of duty free trading within the Africa Continental Free Trade Area (AfCFTA) in July this year hangs in a balance following the continuous impact of the novel Coronavirus Disease (COVID-19) infections that has brought global activities to a standstill.

    Despite the swearing-in ceremony of the first Secretary-General of AfCFTA, Wamkele Mene last week in Ethiopia an event which should have been held in Accra on 31st March, 2020 the growing list of cancellations and postponements of various activities this year because of COVID-19 could potentially delay implementation of AfCFTA in July.

    Following the 2nd meeting of AfCFTA Council of Ministers held in December last year in Accra, it was agreed that AfCFTA Council of Ministers should meet in South Africa for an Extraordinary Summit on 30 May 2020 to approve all instruments under the agreement.

    The Executive Council of the African Union (AU) had earlier directed the AU Commission to convene the necessary meetings to conclude remaining work on Rules of Origin, schedules of tariff concessions and schedules of specific commitment on the five priority service sectors by end of March 2020 to enable the finalization of tariff offers and submission of the final report on Rules of Origin to the Extraordinary Summit in South Africa.

    However, as the rate of COVID-19 infections continue to surge on the continent which has forced countries to take some drastic decisions including travelling restrictions among others, it is likely that the Extraordinary Summit will be postponed.

    The operational instruments include Rules of Origin, which will determine the eligibility of goods to be traded under AfCFTA; modalities such as protection of infant industries; and an online negotiating forum to enable member States spearhead the success of the policy.

    The remaining are: an online mechanism for monitoring and elimination of non-tariff barriers and AfCFTA mobile application for businesses including digital payments system for goods and services; a Pan-African payment and settlement system; and dashboard of the AU Trade Observatory, all of which are expected to accelerate the implementation of the AfCFTA.

    Key Highlights

    Based on the recommendations, the Executive Council of the AU earlier directed AfCFTA Council of Ministers and relevant Policy Organs of the AU to finalize consideration of the Draft Organizational Structure, including the appropriate functions of the appointed directors and the adequate number of the Permanent Secretariat of the AfCFTA, and submit it to the Extraordinary Summit in May 2020, together with a supplementary budget and work programme, through the appropriate Policy Organs of the AU system.

    Source: goldstreetbusiness.com