Namibia finally thinks of a free trade agreement with Africa

Albertina Nakale

WINDHOEK – Namibia finally signed the $ 1 trillion African Continental Free Trade Agreement (AfCFTA), which requires members to remove 90 percent allow free access to products, services and

President Hage Geingob signed the much-anticipated trade agreement on Sunday at the meeting of Heads of State and Government of the Union African Union (AU) at the 31st Ordinary Session of the Assembly held on 1 and 2 July in Nouakchott, The signing of the agreement shows that Namibia has gone from a protectionist stance, celebrated by Particularly local manufacturers, but strongly criticized by the protagonists of trade liberalization who think that the elimination or reduction of tariff barriers would stimulate trade and jobs. how this agreement would affect the protection ambitions of Namibia's fledgling industry.

The core of the argument is that fledgling industries often do not have the economies of scale that their competitors, often foreigners, may have and therefore need to be protected up to that point. that they can achieve similar economies of scale.

Neighbors South Africa, from which Namibia buys 80% of its imports, signed the deal last weekend.

South Africa initially refused to sign at the Kigali Special Summit in March, where 44 of the 55 AU member states signed. South Africa was to first enforce the agreement by the legal advisers and now, the agreement will be ratified by the parliament SA

Here are the main objectives of the l & # 39; Agreement on the African Continental Free Trade Area (AfCFTA). Create a single continental market for goods and services, with free movement of businessmen and investments, which will pave the way for the acceleration and creation of the Continental Customs Union and the the African Customs Union.

• Improving Competitiveness in Industry and Business • Developing intra-African Trade through Better Harmonization and Coordination of Trade Liberalization, Facilitation Regimes and Instruments among Regional Economic Communities (CER) and across Africa in general.

• Resolve the challenges of multiple and overlapping memberships and accelerate the United Nations Economic Commission for Africa estimates that the agreement will boost intra-African trade by 52% of the time. here 2022.

The proposal will enter into force after ratification by 22 of the signatory States.
In Namibia, Geingob now has to agree to Cabinet before Trade Minister Tjekero Tweya deposits it in the National Assembly for its adoption and ratification

In addition to Namibia and Namibia, South Africa, Sierra Leone, Lesotho and Burundi Nigerian Foreign Minister Geoffrey Onyeama told Daily Maverick that his country needed to complete its internal consultation process before committing to what whatever. This means that South Africa is the largest economy to have signed the agreement so far.