Accountants tasked with contributing to the implementation of the AfCFTA | Economic news

Chartered Accountants have been tasked with contributing to the successful implementation of the African Continental Free Trade Area (AfCFTA) Agreement.

Speaking on the role of chartered accountants in the successful execution of the agreement, Mr. Mickson Opoku, Team Leader, Multilateral, Regional and Bilateral Trade and Chief Negotiator for AfCFTA, Ministry of Trade and Industry , said it was important for accountants to educate and sensitize people and stakeholders to understand the Framework Agreement, protocols, annexes and appendices of the Treaty establishing the AfCFTA.

He made the call at a virtual seminar hosted by the Accra West District Society of the Institute of Chartered Accountants of Ghana.

The seminar attended by 70 professionals was chaired by Mr. Francis Bus-Moses, member of the World Bank Group.

Mr Opoku called on professionals to enable people to understand the financial implications of the deal for the private sector, to contribute to the negotiations on services especially in the business and financial services sectors.

They were also tasked with supporting structural reforms in the financial sector to make Ghana the financial center of Africa.

The benefits of the AfCFTA, he said, would not come automatically, so to reap the benefits of the Agreement by AU member states, a Program of Action to Boost Intra-Trade Africa (BIAT) had been endorsed by AU Member Heads of State.

BIAT will address seven priority groups: trade policy, trade facilitation, productive capacity (industrialization), trade-related infrastructure (such as transport and communication), trade finance, trade information, and factor market integration.

Each country was to identify specific areas of comparative advantage and strategic direction for diversification and developing value chains for goods and services.

The team leader mentioned an increase in intra-African trade of 12 percent, which was the lowest compared to intra-EU trade, intra-Asia trade and intra-US trade which stands at 68 percent. cent, 53 percent and 46. percent respectively as some of the benefits of AfCFTA.

He said that a successful implementation of the AfCFTA would also increase intra-African trade by $ 35 billion per year, or 52% above the baseline by 2022.

Consequently, imports from outside the continent could decline by $ 10 billion per year, while agricultural and industrial exports would increase by $ 4 billion (7%) and $ 21 billion (5%) respectively. ) compared to the reference level (CEA, 2014).

According to Mr. Opoku, the other strategic objectives and advantages of AfCFTA are to develop regional value chains and facilitate cross-border investments; and improve access to a wider market for SMEs in Africa on preferential commercial terms.

Others aim to attract foreign direct investment (FDI) to Africa with strong regional and local content and to facilitate the integration of African economies into global markets.

Currently, 54 of the 55 member states have so far signed the AfCFTA which was adopted at the AU Extraordinary Summit in Kigali, Rwanda on March 21, 2018.

Thirty-five (35) Member States have ratified and deposited their instruments of ratification with the AU Commission.
Implementation began on May 30, 2019 (30 days) after 22 member states ratified the AfCFTA and deposited their instrument of ratification with the AU Commission, Opoku said.