Business News of Wednesday, 19 August 2020

Source: Eye on Port

Pundits propose way forward for successful implementation of AfCFTA

Panelists on the Eye on Port show Panelists on the Eye on Port show

Trade experts in Ghana have raised some concerns needed to be addressed in order to enjoy a successful implementation of the African Continental Free Trade Area agreement following the handing over and commissioning of the AfCFTA Secretariat by the President of Ghana.

The African Continental Free Trade Area is intended to create a single continental market for goods and services at they move freely within the region.

Speaking on Eye on Port, Trade Practitioner and the Executive Director of the AfCFTA Policy Network, Louis Afful, expressed the concern over a current dilemma facing the Ghana Government on deciding the appropriate timeline for the opening of borders in the midst of the coronavirus pandemic.

He proposed that, the government should deploy some mitigating interventions which would ensure that workers of the secretariat come in safely.

“I feel we have to put in mitigating factors first. If you look at other countries like the UK, they set up quarantining processes for people coming in,” Louis Afful explained.

The National President of the Borderless Alliance, Mr. Ziad Hamoui however revealed that relevant ministries of ECOWAS member states have been engaged on such protocols but raised concern over lack of harmonisation of the ease of restrictions at the borders.

“I would have wished that the various countries in the ECOWAS region would have moved together on that. Unfortunately, for the past few weeks, because of the delay in the meetings of the Heads of States, in order for a direction all the countries should go together. There have been a few birds that have broken away from the flock. Cote D’Ivoire for example has announced the opening of its airport,” he disclosed.

Mr. Ziad Hamoui emphasized that the silver lining in the delay of the implementation due to the current public health crisis, is that governments can have the time to improve the quality and diversification of production of goods in member countries in preparation towards the overall intra-continental trading.

“It has also created the opportunity to start working on enhancing the quality of some of our production, for example with that of the personal protective equipment, liquid soap and sanitizers.” He said.

The Secretary General for the International Chamber of Commerce, Ghana, Emmanuel Doni-Kwame, on the same program, expressed that aside the theoretical framework, there is an enormous volume of work the secretariat has to engage in on the ground to ensure a successful implementation.

He listed issues surrounding rules of origin, tariffs, e-commerce, among others that need immediate addressing and called for the setting up of sub-institutions to address these specific issues so that the continent can take advantage from the lessons learnt from the European Union.

“There’s a lot of work to be done. That’s why I will say that, as negotiations go on, there may be the need to look at not just technical working groups but the technical working groups should be turned into proper institutions.”

The Head of ICC Ghana, also called for the harmonization of the various customs systems for efficient movement of goods.

Emmanuel Doni-Kwame appealed for ongoing negotiations within the agreement, to incorporate the e-commerce industry, where he proposed harmonized communication rates that would positively impact the businesses of young African entrepreneurs.

“As a result, I would ask that those items on the agenda would consider to bring, issues that have to do with a harmonized regulation or framework for investment in communication infrastructure so that at least the cost of data will come down,” he proposed.