(Nairobi) – The East African Business Council (EABC) has called for the rapid implementation of the African Continental Free Trade Area (AfCFTA), urging African countries to remove tariffs on goods and address infrastructure challenges that have slowed progress since the pact entered into force in 2019. According to EABC, the removal of tariffs on 90 percent of goods, along with improvements in transport and border infrastructure, are key to unlocking the full potential of the AfCFTA.
Kenya, Ghana, Cameroon, Egypt, Rwanda, and Tanzania were selected to lead the pilot phase of the trade agreement, with Kenya and Ghana being the first to ratify the deal. These countries are now expected to set the pace for the broader continent. However, despite the formal start of trading in 2021, the AfCFTA has faced setbacks, with limited official trade taking place. Most of the goods traded so far have been part of the trial phase, and the full trade impact is yet to be realized.
The AfCFTA has been signed by 54 African Union (AU) member states, with 49 of them having ratified the agreement, making them eligible to trade under its terms. However, the EABC has pointed out that several obstacles are hindering its effective implementation, particularly the need for African nations to eliminate tariffs and address infrastructure gaps. These challenges include underdeveloped transportation networks and insufficient border facilities, which are preventing the smooth flow of goods and services across the continent.
Geoffrey Kamanzi, the Trade in Services Manager at EABC, emphasized that digitalization and compliance with international standards are also crucial for the successful implementation of the AfCFTA. He noted that specific sectors, such as textiles and apparel, sugar products, and motor vehicles, have encountered particular difficulties in the agreement’s rollout, which need to be addressed to allow for better cooperation between nations.
Despite these challenges, Kenya is eager to move forward with the AfCFTA. The country has identified 14 priority sectors for merchandise trade, including agriculture, livestock, fisheries, manufacturing, and mining. Additionally, Kenya has outlined priority export services, such as business services, tourism, education, health, and ICT.
Kenya remains confident that the AfCFTA holds significant potential to enhance market access for goods and services within Africa and foster the creation of job opportunities across the continent.