AU Summit 2023: Powering trade through AfCFTA.

To boost intra-African trade, the continent has embarked on the gradual elimination of tariffs on 90 percent of goods, and the reduction of barriers to trade in services aimed at increasing Africa's income by $450 billion by 2035.

The successful implementation of the AfCFTA will lead to the creation of more decent jobs, improved welfare and better quality of life for all citizenry, and sustainable development.

Beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of Small and Medium Enterprises (SMEs) and overall industrialization of the Continent.

As of February 2022, eight countries representing the five regions of the continent - Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia - participated in the AfCFTA's Guided Trade Initiative (GTI), which seeks to facilitate trade among interested AfCFTA state parties that have met the minimum requirements for trade, under the Agreement.

This initiative supports matchmaking businesses and products for export and import between State Parties. The products earmarked to trade under the Initiative include: ceramic tiles; batteries, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried fruits, and sisal fiber, amongst others, in line with the AfCFTA focus on value chain development.

In 2023, the AfCFTA Guided Trade shall also focus on Trade in Services in the five priority areas, namely: Tourism, transport, Business Services; Communication Services; Financial Services; Transport Services, and Tourism and Travel-related Services.

The ultimate objective is to ensure that AfCFTA is truly operational and the gains from the initiative are improved implementation in order to achieve increased inter-regional and intra-Africa trade that would yield economic development for the betterment of the continent at large.

In 2023, the AfCFTA Guided Trade shall also focus on Trade in Services in the five priority areas, namely: Tourism, transport, Business Services; Communication Services; Financial Services; Transport Services, and Tourism and Travel-related Services.

The adoption by the African Union of the theme of the Year 2023 as the 'Year of AfCFTA: Acceleration of the African Continental Free Trade Area Implementation', is expected to generate greater political commitment and accelerate the effective implementation of the AfCFTA to fully benefit the African citizenry and achieve the Aspirations and goals of Agenda 2063.

The year-long activities will enhance the existing collaboration among the member states, the Regional Economic Communities (RECs), AU institutions, the private sector, development partners, and other stakeholders, to mobilize and implement actions that boost intra-Africa trade, particularly trade in value-added production and trade across all sectors of Africa's economy.

The AfCFTA will build on the progress achieved by the eight RECs under their customs unions, free trade areas and other trading arrangements.

AfCFTA: The development strategy interlinking drivers of trade

The connection will similarly advance the progress in the implementation of the other sectors such as peace and security, climate change, health, education, and infrastructure.

The implementation of the AfCFTA Agreement is by necessity, a complex and highly collaborative undertaking, drawing on the expertise and experience of all.

For the AfCFTA to be a successful and to increase the attractiveness of the African market for trade and investment, it must be complemented by similar progress of other AU Flagship projects, such as:

The African Integrated High Speed Network;

African Commodities Strategy;

Pan-African E University;

the African Passport and

Free Movement of People;

Silencing the Guns;

Implementation of the Grand Inga Dam Project;

Creation of an Annual Consultative Platform for policy dialogue;

Single African Air Transport Market;

Pan-African Virtual University; and

The Continental Financial Institutions.

The interlinkages with other critical economic sectors, the AfCFTA will similarly advance the progress in the implementation of the other sectors such as:

Peace and Security and Trade

Peace and security are essential preconditions for sustainable economic growth and development, including trade. A stable and secure environment is necessary for businesses to operate, for investors to make long-term commitments, and for workers to be able to produce goods and services.

On the other hand, trade itself can also contribute to peace and security by...