The Africa Continental Free Trade Area (AfCFTA) secretariat has adopted a special instrument described as the Guided Trade Initiative (GTI), which has set the ball rolling for commercial trading to commence for the first seven countries to have met all requirements and expressed strong readiness.
The GTI was introduced as a solution approach to aid countries that had submitted their tariff schedules in accordance with the agreed modalities to trade preferentially among themselves.
The seven countries qualified to trade under this arrangement are Ghana, Cameroon, Egypt, Kenya, Mauritius, Tanzania and Rwanda – with earmarked products such as ceramic tiles, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried-fruit and sisal fibre, among others.
The starter-members represent all five regions of Africa and are supported by AfroChampions and Afreximbank, whose focus is on small and medium size enterprises (SMEs) and operationalisation of key instruments.
Speaking at the 10th Meeting of the Council of Ministers held at the Accra International Conference Centre (AICC), secretary general of the AfCFTA secretariat, Wamkele Mene, explained that specific objectives of the AfCFTA GTI include allowing commercially meaningful trading under the AfCFTA; testing the operational, institutional, legal and trade policy environment under the AfCFTA; and sending an important positive message to Africa’s economic operators.
“The Guided Trade Initiative materialises the ambition of African Heads of State and Government to create a single market under the AfCFTA. We look forward to showcasing made-in-Africa products benefitting from tariff preferences under the AfCFTA; and beyond that, the impact in African markets.”
Mene further mentioned that the GTI will be reviewed annually to expand the list and bring on board other countries which will be ready at the specific time, until all countries become fully ready.
AfCFTA Champion and former president of Niger, Mahamadou Issoufou, in his keynote address indicated that a lot of lessons have been drawn from this exercise; and the strength of this commendable initiative is measured by the extent to which it resolves issues raised from the exercise.
In what is described as matchmaking trading or exports and imports, a country like Ghana for instance will export ceramic tiles to Cameroon and receive a tariff reduction of 20 percent under this GTI arrangement. Similarly, Ghana will also offer a 20 percent tariff reduction to the coffee products imported from Rwanda within the coming week. Likewise the Tea and Air-conditioners from Kenya and Egypt respectively.
Council of Ministers’ 10th meeting
This meeting is among others aimed at developing three protocols to be presented to the heads of state on 25th of November when they convene for adoption.
The three protocols are initiatives under phase-two of the implementation process and are competition, investment and intellectual property rights.
The Secretary-General therefore urged the Council of Ministers to complete the task in time, and ensure before the heads of state meet on 25th November the protocols will be ready for their consideration.
He added that the protocol on youth and women in trade will need more time to develop, and so ministers of the council must put in more work and push for its guidelines development in their various countries.
The AfCFTA Champion on his part recommended: rapid ratification of the AfCFTA Agreement; conclusion of outstanding negotiations by guiding the negotiators where necessary; accelerate implementation of the AfCFTA by forming AfCFTA Implementation Committees at national level; and to assist the AfCFTA secretariat and Department of Economic Development, Trade, Industry and Mining to collaborate and ensure a successful hosting of the Summit on Industrialisation and Extraordinary Session of the AfCFTA.
