At the recent GCCA Africa Cold Chain Conference held on August 24, Lesley Wentworth, managing director of Tutwa Consulting Group, shared valuable insights on the potential of the African Continental Free Trade Area (AfCFTA) in enhancing imports and exports of perishables. This is Part 3 of a five-part series.
As of now, approximately 92% of tariff lines have been agreed upon under the rules of origin, marking significant progress. For trading services, 22 schedules of specific commitments have been adopted, and the dispute settlement mechanism is operational, contingent on the effective functioning of the first two protocols.
A notable initiative that began in 2022 is the Guided Trade Initiative (GTI), aimed at testing the practical application of trade under the AfCFTA. Initially involving seven countries, the programme has now expanded to 32 African nations actively trading under its framework. The GTI was introduced to reinvigorate trade activities that had stalled during the COVID-19 pandemic.
Wentworth urged participants to recognise the immense potential of the AfCFTA and to actively engage in shaping the future of trade on the continent. As Africa moves forward, fostering collaboration and understanding will be key to unlocking opportunities in the perishables sector and beyond.
The guided trade initiative and challenges ahead
As travel restrictions were lifted across Africa, the Guided Trade Initiative (GTI) commenced, with countries like Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, and Tanzania stepping up to test this framework. Monitoring the actual level of trade under the GTI has proven challenging. For instance, Mauritius, a leader in the initiative, reported difficulties in gathering comprehensive trade statistics. Nonetheless, as of August, 32 African countries have actively engaged in trade under this pilot program, with South Africa recently joining after completing its tariff obligations.
Regional participation and ratification challenges
In the context of the 55 African Union member states, discussions around participation and ratification revealed that 48 have signed the AfCFTA. Eritrea remains an outlier, focusing primarily on domestic issues and not yet engaging in regional agreements. Other countries like Libya, Madagascar, Somalia, South Sudan, and Sudan face varying levels of internal challenges that affect their participation in the AfCFTA.
The process of obtaining signatures and ratifications for such extensive continental agreements is intricate and often burdensome. It requires a champion within the government to advocate for the agreement, navigate it through parliamentary processes, and secure the necessary sign-offs. After a head of state signs the agreement, a ratification instrument must be deposited with the AfCFTA Secretariat, which adds layers of complexity to the process.