The African Continental Free Trade Area (AfCFTA) has been effectively structured, according to the World Bank, to enhance the economies of East Africa.
This will be done, among other things, by reducing the costs of non-tariff barriers and non-tariff policies, as well as trade expenses connected to trade facilitation.
The implementation of AfCFTA’s policies will undoubtedly strengthen the East African economy, according to Mr. John Bosco Kalisa, executive director of the East African Business Council (EABC). The director stated, “the continental trade protocol is projected to increase real income for East Africans.”
Rapid implementation of the continental trade agreement would be good for the East African Community (EAC) group. Tanzania, the region’s second-largest economy, is expected to have a 10% increase in real income between 2021 and 2035.
In Kenya, Uganda, and Rwanda, the real income will increase by 11.8%, 3.8%, and 3.6%, respectively. There were no statistics available for three further EAC members: Burundi, South Sudan, and the Democratic Republic of the Congo (DRC). Mr. Kalisa delivered this information last week in Nairobi, Kenya, during a session on AfCFTA sensitization for the commercial sector.
EABC arranged the two-day training on the trade-in goods protocol as part of the GIZ funding program. According to Auni Bhaij, the EABC’s goodwill ambassador for logistics and transport, the adoption of the trade pact will increase intra-African trade in manufactured goods.
The intra-AfCFTA export shares of Tanzania and Kenya will rise as the EAC’s overall exports are anticipated to climb by 28% and 43%, respectively. Similar forecasts of 29% and 33% are anticipated for Uganda and Rwanda, respectively.
According to Mucai Kunyiha, director of the EABC board, the AfCFTA agreement was a clear indication of the African country’s commitment to the new system. “They have shown commitment to doing more trade and investments among themselves,” Mucai Kunyiha said.
The Nairobi workshop to discuss the AfCFTA Trade in Goods Protocol and its significant annexes attracted 55 enterprises from Kenya. The annexes include Rules of Origin, Tariff Concession, and Non-Tariff Barriers, together with their repercussions for businesses in the EAC bloc.
By gradually lowering tariffs on more than 90 African goods, the AfCFTA pact seeks to enhance intra-African trade.
The goal also includes removing trade restrictions on goods and services as well as non-tariff trade barriers. A total of $7.9 billion, or 42% of the EAC’s global goods exports of $18.7 billion, was sent to Africa.
Source: Business Insider Africa
