Africa
African Union
Albert Muchanga
AU
AU High Representative
Continental Free Trade
Donald Kaberuka
East Africa
Foreign Affairs
Kigali
Mauritania
Paul
Peace Fund
Rwanda
Trade and Industry
Uganda

Cautious optimism as Africa opens single market

In East Africa, Tanzania has hinted that it may not sign the agreement as it waits parliament to debate it, while Uganda has raised concerns over some tariffs.

“Tanzania has the political will to sign, but we need sometime to first subject the treaty to parliament and also understand what our population thinks about it before signing,” Tanzania’s Foreign Affairs Minister, Augustine Mahiga, told The EastAfrican.

Of Africa’s 54 countries, only about 20 African heads of State are expected to sign the CFTA at the extraordinary African Union summit in Kigali, Rwanda. The agreement targets to boost intra-Africa trade by making Africa a single market with a population of 1.2 billion people and cumulated GDP of more than $3.4 billion.

Rwanda’s President Paul, the AU chairman who is driving reforms at the continental bloc, speaking at the opening ceremony on Tuesday, said the trade treaty provides Africa with an opportunity to break trade barriers and reap the benefits of integration.

“The stakes are enormous for Africa, but also for the entire global economy, to which Africa will contribute an ever-greater share in the decades ahead,” said President Kagame.

“Increasing intra-African trade, however, does not mean doing less business with the rest of the world. On the contrary, as we trade more among ourselves, African firms will become bigger, more specialised, and more competitive internationally,” he added.

“Let’s also be realistic. We cannot take the Continental Free Trade Area for granted. After it is signed, there will still be challenges.

“Implementation will mean reform of procedures and rules at the national level. This won’t happen overnight. It will be a process requiring dialogue and flexibility,” he said.

Albert Muchanga, the AU Commissioner for Trade and Industry, urged countries that are yet to complete national consultations to do, saying they will have another chance of signing at the next AU summit.

“When the negotiations started in 2015, a key principle agreed was that those ready to sign should go ahead. A lot of countries have not yet finalised national consultations and others are directly talking to parliamentarians and they require some time to finalise,” Mr Muchanga said.

“But signing is the first thing that has to happen. Just after this, on Wednesday, we shall have another summit in Mauritania, and we shall expect those member states with reservations to have finalised the process.”

“It is unfortunate that some African countries have waited this long until close to the signing to start talking about their reservations to the CFTA,” said Donald Kaberuka, one of the AU experts in President Kagame’s reform team. He is the AU High Representative for the Peace Fund.

At a meeting of Foreign Affairs ministers on Monday, some countries expressed concerns over the number of signatures needed to ratify the treaty. Some, like Tanzania, wanted the number increased from 15 to 22 countries.

“If you need a reasonable threshold, it cannot be only 15 countries; otherwise Ecowas (West African bloc) which is made up of 15 countries can sign it alone. This would not be representative. If we move it to at least 22 signatures to have it ratified then it can be taken seriously,” Tanzania’s Foreign Affairs Minister, Augustine Mahiga, said.

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