Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    SCZONE showcases investment opportunities to eight Japanese companies    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Eyes of world are turned to Africa as AfCFTA comes into effect: Al-Sisi
Landmark trade pact raises hopes for unified prosperous African continent
Published in Daily News Egypt on 07 - 07 - 2019

"The eyes of the world are turned to Africa," Egyptian President and African Union Chairperson Abdel Fattah Al-Sisi said on Sunday at the 12th Extraordinary Summit of the African Union in Niamey, Niger.
The summit witnessed the launch of African Continental Free Trade Area (AfCFTA) after completing the number of the required endorsements.
Al-Sisi added that the AfCFTA will reinforce the African negotiating position on the international stage, adding that it is necessary to strengthen partnership with the private sector, and that the continent should also direct its efforts toward boosting foreign direct investments and developing a strong infrastructure for transport to include roads, railways, and ports.
Nigeria, most populous country and largest economy, and Benin became the latest African nations to sign the agreement, on Sunday.
In April 2019, Gambia ratified the AfCFTA, meeting the minimum threshold—22 out of the 55-member states—for the trade agreement to go into effect.
In March 2018, the agreement was signed by 49 heads of state with Nigeria—the region's largest economy—being a notable exception.
Egypt has been a long-time supporter for the agreement, on 21 November, President Abdel-Fattah Al-Sisi emphasised Egypt's belief in the importance of the economic integration among African countries, and the liberalisation of the intra-African trade.
Recently, Al-Sisi called on Egypt to host a number of African economic activities, within the framework of the country's interest to activate and strengthen its economic cooperation with the countries of the continent, such as the Africa 2018 Forum, and the Intra-African Trade Fair.
The AfCFTA agreement would result in the largest free-trade area in terms of the participating countries since the formation of the World Trade Organisation (WTO), as it would unite the 55-member countries of the AU in tariff-free trade.
The prospective agreement's countries have a cumulative GDP of $2.5tn and a market of 1.2 billion people. The free-trade area, which will include an easing of travel across the continent, is hoped to encourage Africa's trade to diversify away from its traditional commodity exports outside of the continent, the volatile prices of which have hurt the economies of many countries.
This agreement was first introduced in January 2012 during the 18th Ordinary Session of the Assembly of Heads of State and Government of the AU, held in Addis Ababa, Ethiopia. The member states adopted the decision to establish the Continental Free Trade Area by 2017.
Continent's huge potential
One key to unlocking the region's economic potential is making it easier for Africa's 55 countries to trade with one another.
Currently, Africa is a patchwork of regulations and tariffs, and trade between countries has suffered as a result.
As a whole, Africa's intra-continental trade level hovers at just around 20%, while nations in Europe and Asia are at 69% and 59%, respectively. Clearly, there is a lot of room for growth.
However, Africa faces some challenges which need to be addressed. First of all, the continent needs to facilitate and implement an effective regulation of the trade in goods and services, and to address the tariff and non-tariff barriers, as well as the regulatory obstacles, besides promoting financial market governance and regulation.
According to the 2018 edition of the African Economic Outlook (AEO), Africa's infrastructural needs are estimated at around $130–170bn annually.
Similarly, the International Monetary Fund said that the AfCFTA is a potential economic game changer, comparing it to Eurozone agreement in its May report. However, the report added that reducing tariffs alone is not sufficient.


Clic here to read the story from its source.