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Company News of Monday, July 15, 2019
Source: Graphic.com.gh
2019-07-15
Alan Kyerematen (right), Minister of Trade and Industry, highlights ALECA with Mr. Kobby
Ghana was selected from six other countries that submitted nominations for the organization of the secretariat of the African Continental Free Trade Agreement (AfCFTA).
The countries are Ethiopia, Kenya, Senegal, Egypt, E-Swatini and Madagascar. In the final phases, Senegal, Ethiopia and Egypt withdrew their bids for Ghana.
Since the selection of Ghana, the interpretations and understanding of AfCTAA are divergent.
The Daily Graphic's political editor, Mr. Kobby Asmah, last Friday expressed the views of the Minister of Trade and Industry, Mr. Alan Kwadwo Kyerematen, on the benefits of AfCFTA and the selection of the Ghana as the host country of the AfCFTA Secretariat.
Despite Ghana's pioneering role in the struggle for independence in Africa and its subsequent contributions to the integration of the African continent, Ghana has had neither the honor nor the privilege to host an organ of the Union African (AU).
Ghana's decision to host the AfCFTA Secretariat is therefore historic, said Kyerematen.
Below are excerpts from the interview.
Kobby Asmah
What has required the creation of AfCFTA?
Alan Kyerematen
The creation of a single continental market for Africa has long been the dream of the founding fathers of most of the major countries of our continent.
The 1991 Abuja Declaration of the Authority of Heads of State of the Organization of African Unity envisaged the creation of an African Economic Community.
One of the building blocks of the creation of this community was the creation of a Continental Free Trade Area for Africa.
The realization of the vision of a single market did not materialize until the AU Summit of Heads of State and Government in January 2012, which formally approved the decision to create an African Continental Free Trade Area.
Since the adoption of this decision, many preparations and negotiations have been conducted by the Member States, which ultimately resulted in the landmark decision of the AU Summit in Kigali on 21 March 2018 to formally conclude the first phase of the negotiations of the continental free trade agreement.
Kobby Asmah
What is AfCFTA?
Alan Kyerematen
The AfCFTA is a single market trade bloc (free of duties and quotas) covering the entire African continent with a total population of 1.2 billion and a gross domestic product (GDP) combined of nearly 3 trillion USD.
AfCFTA is the largest development in Africa since the creation of the Organization of African Unity (OAU) in 1963. It is the largest free trade area. in the world, right behind the World Trade Organization (WTO). Member States.
Kobby Asmah
Can you enlighten us on the operational phase of AfCFTA?
Alan Kyerematen
With the entry into force of AfCFTA, the operational phase of the agreement was officially launched on July 7, 2019 at the AU Summit in Niamey, Niger.
The critical elements of the operational phase are the adoption of an agreed set of rules of origin and the launch of key operational instruments of the Agreement, including the online platform for tariff negotiations, the African Observatory. (AFO), digital payment and settlement systems (AFREXIM). Bank), the online reporting and monitoring mechanism for non-tariff barriers, the mobile application for AfCFTA's business activities, the MANSA repository platform to serve as a centralized database for the customer vigilance and the US $ 1 billion AfCTA adjustment facility to manage the adverse effects of revenue losses for some countries.
Other elements include the establishment of a permanent secretariat in Accra, which should be completed by 30 March 2020.
Kobby Asmah
Are there any benefits to Ghana?
Alan Kyerematen
Ghana can and must seize the opportunity to host AfCFTA's secretariat to become Africa's new commercial capital, a hub of regional trade, an economic epicenter and the new gateway to the mainland.
The secretariat's welcome will promote Ghana as an attractive investment destination and will actively facilitate foreign direct investment in Ghana.
The AfCFTA headquarters will also attract major international financial institutions to settle in Ghana. Other international companies operating in Africa probably consider Ghana to be the preferred location for their head office.
Kobby Asmah
How does Ghana position itself to take advantage of the benefits of the Agreement?
Alan Kyerematen
Ghana has already started implementing a comprehensive industrial transformation program in line with the Program of Action to Boost Intra-African Trade (BIAT), ready to take advantage of AfCFTA.
Current interventions by the government in BIAT's priority groups include: Improving industrial production capacity – A District, a Factory Initiative (1D1F), Strategic Initiative for Industry Industries anchoring, a region, a park (industrial parks and special economic zones), SME development and promotion of standards.
Others, he said, concerned trade facilitation – customs management reforms, including the one-stop shop and the implementation of the WTO agreement on trade facilitation. trades.
He added that trade-related infrastructure, including Tema and Takoradi port extension projects, roads, airports and railways were also underway.
Kobby Asmah
How many countries have signed the AfCFTA?
Alan Kyerematen
To date, 54 out of 55 African countries have already signed the Africa Free Trade Agreement, with 27 countries having ratified it.
The entry into force of the agreement was subject to the ratification of the agreement by 22 countries. In this regard, on May 30, 2019, the AfCFTA came into force one month after the deposit by 22 countries of their instruments of ratification with the AU Commission.
Kobby Asmah
Could you summarize some of the benefits of AfCFTA?
Alan Kyerematen
Africa will reap many benefits from the implementation of the Agreement, including increased intra-African trade through better harmonization and trade coordination on the African continent.
It is estimated that intra-African trade will increase to $ 35 billion a year, or 52% by 2022.
It will also address the challenge of small, fragmented markets in Africa by creating a single continental market that will lead to economies of scale and add value to Africa's abundant natural resources and promote economic diversification and industrialization.
In addition, he said, this would develop regional value chains, facilitate cross-border investment in Africa and enhance access to a broader market for African SMEs on preferential trade terms.
In addition, AfCFTA, he said, would attract foreign direct investment (FDI) to Africa with strong regional and local content and facilitate the integration of African economies into global markets.
Kobby Asmah
Do you mean that the AFCTFA hosting will have an impact on Ghana?
Alan Kyerematen
It would not have been easier than now for Ghana to host the AfCFTA Secretariat, especially at a time when Africa is getting on and Ghana is going up.
Hosting the AfCFTA Secretariat will change the game and serve as a launch pad for the Ghanaian private sector to explore and exploit business opportunities in Africa.
This is undoubtedly a major step in Ghana's path to economic prosperity and requires the support of all Ghanaians.
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