Activating the African Continental Free Trade Area Agreement (AfCFTA) has come at a time when the world is reeling from the coronavirus pandemic and the war in Ukraine.
This must surely prompt African countries to mobilise their efforts and work towards economic integration and joint manufacture, which are key to economic growth and sustainable development goals (SDGs) across the whole continent. Achieving SDGs is on the African Development Agenda 2063.
The AfCFTA was brought into focus during the African Union Summit on Industrialisation and Economic Diversification held recently in Niamey, Niger, under the theme ‘Industrialising Africa: Renewed Commitment towards inclusive and Sustainable Industrialisation and Economic Diversification’.
This agreement, if fully implemented, will allow for the emergence of intra-African trade, which at present represents only 15 per cent, to a level that taps into Africa’s abundant natural resources and labour force. An integrated African market will be created to guarantee free movement of goods and services among African countries. Furthermore, it will pave the way to the establishment of an African economic bloc that is expected to play a significant role in enhancing the resilience of African economies to external shocks.
Egypt firmly believes that Africa should have economic clout and has expedited the activation of the AfCFTA and actually carried out the first commercial deal with Ghana. This is considered a vital step for making optimal use of the AfCFTA.
During the African Union Summit, Egypt’s Minister of Trade and Industry Ahmed Samir said that being part of the AfCFTA has been one of the Egypt’s top priorities as the start for promoting intra-continental trade. He pointed out that the AfCFTA will give the advantage to Egyptian products in reaching all African markets.
The minister went on to say that the AfCFTA can open horizons to expand the African economy as a model of multilateral co-operation and international trade.
As part of Egypt’s responsibility towards the African continent, the Egyptian Ministry of Trade and Industry held seminars to raise awareness of manufacturers of the importance of the AfCFTA to realise the continent’s sustainable development and inclusive growth by raising the industrial level of countries party to the agreement.
Egypt has made great efforts for African integration and reinforcing intra-African trade by activating the AfCFTA during Egypt’s presidency of the African Union in 2019. The AfCFTA is considered the world’s second biggest economic bloc (55 African countries) after the World Trade Organisation (164 countries). No doubt industrial integration among African countries will require further efforts and perseverance to provide adequate commercial guarantees and create a favourable investment environment, leading to economic growth that fulfills the ambitions of the African people.
Mohamed Fahmy is the editor-in-chief of The Egyptian Gazette and the Egyptian Mail newspapers
