AfCFTA Implementation Strategies Synthesis Report 2024
The African Continental Free Trade Area (AfCFTA) Agreement Implementation Strategies Synthesis Report was published by the United Nations Economic Commission for Africa to provide a comprehensive overview on the strategies and initiatives aimed at implementing the AfCFTA agreement among member states. The report begins by highlighting the significance of the AfCFTA agreement signed in Kigali, Rwanda, in 2018. It aims to deepen economic integration in Africa, increase intra-African trade, promote industrialization, and align with the AU Agenda 2063 and UN 2030 Agenda. As of November 2023, 54 AU Member States have signed the agreement, with 47 ratifications.
Purpose and Development of AfCFTA Strategies
The implementation strategies were introduced to focus State Parties on AfCFTA implementation, identify priority sectors, and ensure monitoring and reporting on progress. The need for national strategies was endorsed by the Conference of African Ministers of Finance, Planning, and Economic Development.
Key Elements of AfCFTA Strategies
The report outlines key issues emerging from national strategies, including comparative analysis of visions, strategic pathways, market opportunities, institutional mechanisms, gender mainstreaming, funding, and private sector involvement.
Challenges
Challenges in AfCFTA implementation are discussed, emphasizing the importance of addressing legal and regulatory reforms, private sector development, and infrastructure-related activities. The report also highlights the need for effective coordination and institutional mechanisms to ensure successful implementation.
Gender Mainstreaming
Recognizing the potential of the AfCFTA agreement to advance gender equality and economic growth, the report emphasizes the importance of empowering women across various economic sectors and roles.
Emerging Initiatives
The report discusses initiatives like the Guided Trade Initiative (GTI) aimed at expediting trade under AfCFTA preferences. The GTI serves to demonstrate the effectiveness of the legal framework, assess national systems, and engage the private sector to boost intra-African trade.
Operational Instruments
Operational instruments such as the AfCFTA e-tariff book, Pan-African Payment and Settlement System (PAPSS), AfCFTA Adjustment Fund, and Non-Tariff Barriers (NTBs) Mechanism are highlighted. These instruments facilitate private sector involvement and address trade barriers encountered during the trading process.
Trade Opportunities and Market Targeting
The report analyzes trade opportunities within the AfCFTA, focusing on priority products and potential markets for State Parties. It emphasizes the importance of increasing both the volume of trade between existing partners and the number of trading partners.
Institutional Mechanisms
The need for establishing institutional mechanisms for effective coordination and implementation of AfCFTA commitments is discussed. Challenges in forming National Implementation Committees (NICs) and the importance of diverse membership are highlighted. In conclusion, the AfCFTA Implementation Strategies Synthesis Report provides a detailed insight into the strategies, challenges, initiatives, and opportunities associated with the implementation of the AfCFTA agreement across African countries