Posted on May, 6, 2019 at 10:11 am
THE failure by East African entrepreneurs to produce diversified products is likely to deny the community’s prospects in the envisioned
African Continental Free Trade Area (AfCFTA).
EAC’s Director General in charge of Customs and Trade, Mr Kenneth Bagamuhunda, said here last week that manufacturing same products in the region could curtail cross-border trade, thus spelling doom to the community’s economic prospects in the agreement.
“The private sector in the private sector tends to protect what they have and this could have an adverse effect if we are to embrace AfCFTA,” warned Mr Bagamuhunda.
The EAC senior official, who was speaking on the sidelines of the East African Business Council (EABC) and the United Nations Economic Commission for Africa (UNECA) Conference on AfCFTA, disclosed that the EAC was currently on exploiting the potential found in textile, steel and edible oil sectors ahead of the trading agreement which becomes operational in July this year.
He cited the experience of Regional Economic Communities (RECs) as the building blocks for the agreement, further calling on EAC governments to set conducive environment for the successful implementation of AfCFTA.
“The AfCFTA should build on what has already been achieved in regional negotiations like the Tripartite Free Trade Area, as well as within our respective regional blocs,” he told a gathering of more than 40 key players from the region’s private sector.
Echoing similar sentiments, EABC Chairperson Mr Nick Nesbitt emphasised the importance of the continent having a clear vision to put an end to the fragmentation of the internal market. He acknowledged the crafting and creation of AfCFTA concept saying it was bent on pan- Africanism.
“I really applaud everybody who has involved in creating the agreement because their vision is the one of pan-Africanism. It is something our founding founders aspired to,” he offered.
With its headquarters in Addis Ababa, Ethiopia, UNECA estimates large potential gains from the AfCFTA, including an increase in intra-African exports of Eastern Africa by nearly 1.0 billion US dollars.
Such a feat should encourage the business community people in East Africa to take advantage of the envisioned agreement and make investments necessary to sustain economic growth and create employment, according to Dr Andrew Mold, Acting Director in Eastern Africa.
“Together African economies have a collective GDP of 2.5 trillion US dollars, making it the eight largest economies in the world.
That makes the continent much more attractive to investment, both from within and from outside the continent,” he added.
Launched in Kigali, Rwanda last March, the initiative is expected to be of benefit to the private sector in boosting speed and reduce the cost of customs procedures and port handling through implementation of trade facilitation measures
Source: Daily News