On the 18th of August, 2023, the Coordination Office of the African Continental Free Trade Area (AfCFTA) for the National Africa Continental Free Trade Area organized a regional conference in Damongo, situated in the Savannah Region. The purpose of this event was to convene a consultative session aimed at raising awareness about the National AfCFTA Policy Framework and Action Plan. This initiative is designed to enhance trade between Ghana and other African nations at the regional level.
Additionally, the conference aimed to inform stakeholders and the business community about the institutional arrangements for implementing the AfCFTA in Ghana, as well as the processes and procedures for engaging in trade under this agreement.
In his welcome address, Hon. Saeed Muhazu Jibriel, the Savannah Regional Minister, expressed his views on the immense potential of AfCFTA. He highlighted how this initiative has the capacity to reshape the trade and prosperity landscape not only for Ghana but for the entire African continent. He emphasized the commitment of the Ghanaian government, evident in the development of a comprehensive policy framework and action plan to facilitate the successful implementation of AfCFTA. He urged all stakeholders in the Savannah Region to seize this opportunity, drawing inspiration from other regions and countries that are already taking advantage of AfCFTA.
Furthermore, the Regional Minister encouraged small and medium-sized enterprises to tap into the potential of Agro processing and value addition. He highlighted the benefits of these practices not only for domestic consumption but also for exporting to other African countries and the quota-free ECOWAS regions, capitalizing on the opportunities provided by the African Continental Free Trade Area.
The Regional Minister appealed to the conference attendees to deliberate strategically and formulate actionable recommendations that would foster the growth of micro and medium enterprises across the Savannah Region, considering the region’s natural resources and strengths.
Alhaji Yakubu Yussif, the Senior Advisor responsible for Monitoring and Evaluation at the National AfCFTA Coordination Office, provided insights into the origin and rationale behind the creation of AfCFTA. He explained that AfCFTA represents a significant milestone in Africa’s economic integration efforts, aiming to establish a unified market for goods and services across the continent, a concept that was initially envisioned in the 1991 Abuja Declaration.
Yussif also highlighted the substantial progress of AfCFTA, including its endorsement by the AU Summit in 2012 and the completion of its first negotiation phase in 2018. He emphasized that with a population of 1.3 billion and a combined GDP of nearly USD 3.4 trillion, AfCFTA has become the world’s largest Free Trade Area. Its objective is to facilitate the unhindered movement of goods, people, and investments, marking a pivotal advancement since the establishment of the Organization of African Unity in 1963.
Yussif elaborated that the AfCFTA agreement became effective on May 30th, 2019, following the submission of ratification documents by 22 countries to the African Union Commission (AUC). Ghana and Kenya were the first countries to submit their ratification instruments. He further noted that as of July 2022, 54 out of the 55 African nations had endorsed AfCFTA, with 44 of them having formally ratified the agreement, and 43 countries having deposited their Instruments of Ratification.
Regarding the agreement’s provisions, Yussif highlighted the commitment of State Parties to progressively eliminate trade barriers on 90% of tariff lines associated with AfCFTA within 5 to 10 years. He underscored that the agreement also accounted for special considerations for Least Developed Countries (LDCs), providing extended implementation periods to aid their integration. However, he noted that both LDCs and non-LDCs within the same customs union were required to adhere to matching implementation timeframes to ensure consistency in external tariffs.
Mr. Divine Kutorste, the Program Officer responsible for enterprise support, emphasized the importance of intentional efforts to reap the benefits of AfCFTA. He pointed out that despite Ghana being the headquarters of the AfCFTA secretariat and setting an example, concerted efforts are required. He introduced the Market Expansion Project, initiated by Ghana, aimed at assessing the export readiness of select Ghanaian companies. This project is designed to help these companies capitalize on the opportunities presented by AfCFTA. Divine also shared that their collaboration with nearly 300 audited companies has resulted in comprehensive support, spanning financial assistance, capacity building, and access to necessary equipment.
He emphasized the collaborative nature of this effort, involving various ministries to provide coordinated support to businesses navigating the complexities of AfCFTA. Divine underscored AfCFTA’s role in providing market access, allowing companies to venture into new markets and broaden their reach. He highlighted that 63 companies had participated in an exhibition in Kenya, marking their initial entry into the Kenyan market, with plans to expand further into Tanzania, Cameroon, Egypt, and other African nations. This strategic expansion aims to provide fresh avenues for businesses under AfCFTA to harness new market opportunities
