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Signing AfCFTA giant stride forward for the development of Africa: ECA’s Vera Songwe

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Signing AfCFTA giant stride forward for the development of Africa: ECA’s Vera Songwe

Kigali, 21 March 2018 (ECA) - “With thesignature ofthe Kigali Declaration for the Launch of the African Continental Free Trade Area,Africamakesagiant stride forward in continental integration, in the pan-African vision, and in the development of our continent”,said Vera Songwe, the Executive Secretary of theECA.

Speaking during the official signing ceremony today in Kigali, Ms. Songwenotedthat this historical moment shows the resolve of African leaderstobring the continent’s diversity together andmaketheflagship project of the African Union Agenda 2063a reality.Shethankedall UN agenciesfor their support and said that the ECA was “honoured to be associated with this greatand historic moment”.

During the 18thExtraordinary Session of the African Union Summit held in Kigali today,44 African countries signed the AfCFTA, while a total of 50 signed either the agreement or the Kigali declaration underscoring their commitment to the agreement,which aims at doubling intra-African tradeby removing non-tariff and tariff barriers on goods and services.Moreover, 27 countries also signed theseparate AfricanUnionProtocol on Free Movement of People, which complements the AfCFTA by providing for visa-freetravel, the right of residency and the rightofbusiness or professionalestablishment,for citizensbetween signatory countries.

During his key note address, President Kagame of Rwanda,Chairpersonof the African Union, said, “the AfCFTA [was] the culmination of a vision set forth nearly 40 years ago in the Lagos plan of action adopted in 1980”,fora continent-wide market. He alsorecognized the preeminent role of the regional economic communities in fostering African integration.

Also speaking during the historical ceremony attended by 19 heads of state,and more prime ministers and foreign ministers,Moussa Faki Mahamat, Chairperson of the African Union Commission, thanked theECAfor its support during the more than two years of negotiations.He went on to say“Africa is asleepinggiantthat can’t wake up ifthe continent is divided. It’s time toacceleratethe paceof integration, as international competitionleaves no room for the weak”,and he calleduponAfrican Member States to also sign theProtocol on the free movement of persons, enabling the creation of an African passport.

The ECA Executive Secretary also urged Member States to promptly ratify the AfCFTA, recalling that the agreement will only enter into force once a sufficient number of countries have ratified the agreement.

Likewise, theECA Chiefsaid the signing of the AfCFTA only marksthe end of the first phase of the AfCFTA negotiations, insistingon the need foreffective implementation.The AfCFTA Country Business Index launched by the ECAduring the Summitwill be one of the toolsto keep trackofimplementation,through periodic surveys ofbusinessopinionson the real impactof the agreementon trade.

Ms. Songwe also reaffirmed thenecessity to leave no one behind, as definedinthe Sustainable DevelopmentGoals, by makingsure everyone benefitsfrom the newopportunities created by the AfCFTA.

Accordingtothe ECA,among thekey beneficiarieswill besmall and medium sized entreprises, accountingfor80 percent of the region’s businesses; women, who represent 70% of the informal cross-border traders; and the youth, who will be able to find new employment opportunities.

ECAestimates that AfCFTA has the potential both to boost intra-African trade by 52.3%by eliminating import duties, and to double this trade if non-tariffbarriers are also reduced.