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African nations officially launched a historic trade deal Sunday at the African Union summit in Niger, a long-awaited agreement hailed as a historic step towards "peace and prosperity" across the continent.
After 17 years of difficult negotiations, the AU has launched the "operational phase" of the African Continental Free Trade Area (AFCFTA) in what AU Commission Chairman Moussa Faki had termed "historical moment".
"An old dream is coming true, the founding fathers have to be proud," said Faki, adding that AfCFTA would create "the largest commercial area in the world".
The President of Niger, Mahamadou Issoufou, described it as "the greatest historical event on the African continent since the creation of the Organization of African Unity in 1963", referring to the predecessor of the African Union. 39; DU.
AU officials announced the launch of the five "operational instruments" of the African Continental Free Trade Area (AfCFTA).
Countries agreed to share "rules of origin, monitoring and elimination of non-tariff barriers, a unified digital payment system and a dashboard of the African Trade Observatory" , announced the commission of the AU.
The agreement was strengthened when the presidents of Nigeria and Benin signed thunderous applause Sunday morning at the two-day summit held in Niamey, the capital of Niger.
With Nigeria and Benin on board, 54 of the 55 AU member countries have now signed the agreement, and Eritrea has announced that it is considering joining the pact.
Some 4,500 delegates and guests – including 32 heads of state and more than 100 ministers – attended the AU summit in Niamey, which has been redeveloped and has a new airport, improved roads and new hotels. .
"Game changer for Africa"
The agreement was formalized at the end of April when it crossed the launch threshold, which was to be ratified by at least 22 countries.
The zone will be operational from 1 July 2020, giving countries time to adapt to agreed changes, said Issoufou.
Malawi Trade Director Christina Chatima told AFP that this trade deal was a "game changer for Africa".
"Most of us are exporting to Europe and the US It is time for us to start trading more with each other," she said.
However, despite the launch, there are still key issues to resolve by leaders.
Leaders could not agree on common criteria for rules of origin in some areas.
"No agreement has yet been found on some of these issues," Chatima said. "On textiles, even the automotive sector, the AU secretariat is supposed to make proposals on how we can agree," she added.
AfCFTA urges the majority of countries to cut their tariffs by 90% within five years, reducing trade barriers on the continent.
Countries on the list of "least developed countries" of the United Nations will have 10 years to reduce tariffs, while a group of six countries – including Niger and Malawi – will be at least 15 years old, said Chatima.
Amaka Anku, an badyst for the Eurasia Group for Africa, described the agreement as a positive step, but said the implementation of the agreement is still far from being launched. There is concern about the number of new commercial regulatory agencies that would be funded.
The AU estimates that this agreement will result in a 60% increase in intra-African trade by 2022.
At present, African countries exchange only about 16% of their goods and services, compared to 65% with European countries.
Security on the continent
Security is also on the agenda of the summit, a problem that particularly affects the Sahel.
The host of the summit, Niger, faces constant attacks from jihadist groups.
His colleagues in the security pact between the G5 and the Sahel – Chad, Mali, Burkina Faso and Mauritania – will seek support at the AU summit to push for the strengthening of the security force in the country. UN to deal with the terrorist threat.
The countries hope to activate Chapter VII of the United Nations Charter, told AFP a Nigerian security source. This chapter enables the United Nations Security Council to identify a threat to peace and to propose measures, including military deployment, to deal with it.
"No prosperity, no integration is possible without peace," said Faki, who emphasized the importance of an AU Peace Fund launched in 2018 to fund activities. and called on the Member States to keep their financial promises.
Up to now, only $ 116 million has been received for the proposed $ 400 million fund.
Leaders are also ready to discuss the intensification of intelligence cooperation and the global migration crisis.
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