African countries need to eliminate tariffs on 90 per cent of goods which are slowing down implementation of the continental trade pact, the East African Business Council (EABC) said.
This, together with infrastructure deficiencies, inadequate transportation networks and border facilities are further impeding the implementation of the African Continental Free Trade Area (AfCFTA), which entered into force on May 30, 2019.
Kenya alongside Ghana, Cameroon, Egypt, Rwanda and Tanzania were the six counties picked to lead the pact in the pilot phase.
Kenya and Ghana were the first countries to ratify the AfCFTA and deposit instruments of ratification with the AU Commission, after the agreement was adopted by the AU Extra-Ordinary Summit on March 21, 2018 in Kigali, Rwanda.
While start of trading under the AfCFTA agreement began in 2021, no official trade has taken place under the regime, according to the AfCFTA secretariat, save for the goods moved during the trial phase.
To date, 54 African Union (AU) member states have signed the AfCFTA agreement with 49 (89 per cent of total signatories) having ratified it, making them eligible to trade.
“ There is need for swift implementation of the AfCFTA including the need for digitalisation and compliance with standards to foster successful partnerships,” Geoffrey Kamanzi, trade in services manager at EABC said.
There has been a stalemate on textile and apparel, sugar and sugar products, goods produced in Special Economic Zones (SEZs), edible oils and motor vehicles.
Nevertheless, Kenya has been raring to go with 14 merchandise and service sectors being fronted.
Kenya’s prioritised sectors in merchandise trade include agriculture, livestock and fisheries, manufacturing, handicrafts, mining, oil and gas.
Priority export sectors under services trade are business including professional services, tourism, education, health, financial services, ICT, cultural and sports services; and transport and logistics.
Kenya is confident the implementation of the AfCFTA trade pact has the potential to unlock market access for goods and services within the African continent while creating numerous job opportunities.
