AfCFTA Changes Game for Ghana – Minister of Trades and Industry

Company News of Wednesday, July 10, 2019

Source: www.ghanaweb.com

2019-07-10

Trade and Industry Minister Alan Kyeremanten is hopeful that the Continental and African Free Trade Area (AfCFTA) will change the game for Ghana and Africa. According to him, the agreement will greatly help attract foreign direct investment to the country.

"I can tell you that it's a very big thing. If we have not reasoned to appreciate this, it is indeed a major development for our continent, "he said while addressing reporters Wednesday.

The African Continental Free Trade Area (AFCFTA) would be the largest free trade area in the world since the creation of the Organization of the African Union (OAU). And it was considered the flagship program of the 2063 Agenda of the African Union.

Intra-African trade, once implemented, is expected to increase by about $ 35 billion a year, or 52% by 2022.

At the launch of AfCFTA's operational phase in July 2019, Ghana was chosen to host the secretariat.

According to the Minister of Trades, the secretariat will be located in Accra. It is expected to be completed in March 2020 and its residency office will be located in Ghana, at the Export Trade House.

He suggested that the president, Nana Addo Dankwa Akufo-Addo, had formed an inter-ministerial committee that would collaborate with the AU Commission and composed of certain ministries. Ministry of Finance, National Security, Ministry of Justice, Ministry of Foreign Affairs and chaired by the Minister of Trades and Industry.

Mr Kyeremanten said the free trade agreement would improve employment opportunities for young people in Africa.

According to him, the agreement will also tackle the challenge of small fragmented markets in Africa by creating a single continental market that will lead to economies of scale.

"One of the development challenges in Africa is that you have to deal with small economies with small markets … so the creation of a single continental market obviously positions us with other major markets around the world.

One of Afghanistan's goals is to add value to Africa's abundant natural resources and to promote industrialization.

However, one of the frameworks provides that 90% of tariff liberalization has been adopted for developing and least developed countries.

With the commercial services, it allows among others the services of transport, financial services, tourism and business.