Govt, AGI and GCCI urged to raise US $ 5 billion for AfCFTA | Economic news

The Alliance for Development and Industrialization (ADI), one of the leading think tanks in the country, urges the administration headed by Akufo-Addo, together with the "Industrial Alliance" (ADI). Ghana Industries Association, Ghana Chamber of Commerce and Industry and Ghana Export Promotion. Authority to quickly raise 5 billion US dollars over the next five years to help industries not to take advantage of the free trade zone of mainland Africa.

This vital support to these industries would help them grow, develop and create jobs for young people, which would encourage the government to raise taxes to support its development agenda.

It is also imperative that governments and the private sector catapult the dynamics of this continental free trade. Associations such as the Ghana Industries Association, the Ghana Chamber of Commerce and Industry, and the Ghana Export Promotion Authority could also take advantage of it and use it as a ban. launch for their members.

The government must urgently support and promote these institutional structures in order to explore the opportunities for entry into these countries.

Ghana was politically stable after being devoted to democracy in 1992 and proved to the world its political stability.

"We thank, however, our past Presidents, Jerry John Rawlings, John Kuffuor, John Mahama and our current President, Nana Akufo-Addo, and especially our Trade Minister, John Alan Kyeremanteng, for creating an enabling environment for country". It said.

The time has come for Ghana to take the lead and take advantage of this continental free trade to develop and strengthen its export market, as has already been done with the 1D1F and Planting for Exports and Rural Development initiatives. .

"Ghana's economy can easily repay the $ 5 billion credit facility we demand through the export of commodities such as avocado, pineapple, coconut, sweet potato , among others, "says the report.

The United Nations Economic Commission for Africa estimates that this agreement will boost intra-African trade by 52% by 2022.

According to the ADI, "the government should be able to raise $ 5 billion to take advantage of this opportunity that would put an end to how the government will siphon the economy while maintaining demand. If we do not take advantage of this opportunity, it is likely that economic growth in this country will stagnate. We must seize this opportunity to redeem our credibility, integrity and industrialization capabilities, "said Francis Mensah, coordinator of the IDA.

"Government support to these industries should be based on a theoretical basis, so that the agriculture sector is concentrated through the Ministry of Agriculture, while the textile and tourism sectors should also be managed by the Ministries of Trade and Tourism. Indeed, we must think about all these sectors so that they can grow, "he said.

"We thank the government, especially the Minister of Trade, for its role in promoting such a program, but it poses a great challenge and the demand for the industrial sector to become stronger," the statement said.

The main objectives of AfCFTA are to create a single continental market of goods and services, with the free movement of men and women of business and investments, and thus to open the way to the Acceleration of the establishment of the customs union.

It will also develop intra-African trade through better harmonization and coordination of trade liberalization and facilitation as well as instruments across RECs and the whole of Africa. The AfCFTA is also expected to strengthen the competitiveness of industry and businesses through the exploitation of large-scale production opportunities, access to the continental market and better reallocation of resources. .

The establishment of the Free Trade Area and the implementation of the Action Plan for Enhancing Intra-African Trade (BIAT) provide a comprehensive framework for the pursuit of a regionalism development strategy.

The African Continental Free Trade Area (AfCFTA) is a free trade area, defined in the African Continental Free Trade Agreement between 54 of the 55 African Union Countries.

The free trade area is the largest in the world in terms of participating countries since the creation of the World Trade Organization.

The agreement was negotiated by the African Union (AU) and signed by 44 of the 55 member states in Kigali, Rwanda, on March 21, 2018.

The agreement initially provided for the removal of tariffs for 90% of goods by members, allowing free access to products, goods and services across the continent.