Secretary General Wamkele Mene gives update on implementation of AfCFTA

Five years have passed since the historic signing of the agreement to create the African Continental Free Trade Area, and the journey toward full implementation continues. In an exclusive interview with CNBC Africa, Secretary-General Wamkele Mene of the AFCFTA Secretariat shed light on the progress and challenges faced in integrating a market of 1.3 billion people under this unique trade agreement. One of the key concerns raised by countries is the area of rules of origin. Some nations are apprehensive about the potential for product dumping and import surges that could distort domestic markets. Secretary-General Mene acknowledged these valid concerns, noting that negotiating such a complex and ambitious trade agreement naturally elicits questions and deliberations from member states. Furthermore, there have been signs of protectionism within some regional economic blocs, where countries prioritize serving their internal markets over promoting exports. This approach poses a challenge to the overarching spirit of the AFCFTA, which aims to facilitate free movement of people and goods across borders. Mene emphasized that while trade protectionism is a risk in any trading environment, the AFCFTA has built-in rules to prevent such practices and ensure open markets among member states. As the continent embarks on this unprecedented journey of market integration, Mene highlighted the importance of adhering to the agreed-upon rules and utilizing the dispute settlement mechanism within the AFCFTA to address concerns. While acknowledging the inevitability of impulses toward protectionism, he underscored the critical role of implementing and enforcing the established rules to uphold market openness. Reflecting on the optimism that accompanied the signing of the AFCFTA five years ago, Secretary-General Mene emphasized the need for continued celebration and patience in realizing the benefits of market integration. Amid logistical challenges exacerbated by the global pandemic, efforts have been made to establish harmonized customs procedures, rules of origin, and payment systems to facilitate trade under the AFCFTA. While some countries have made significant progress in readiness to trade under the AFCFTA, others are urged to expedite the implementation of necessary customs procedures to unlock the full potential of the agreement. A forthcoming demonstration event in Accra aims to showcase the benefits of trading under the AFCFTA and encourage more countries to embrace the opportunities it offers. The interview also delved into the continent's reliance on external grain suppliers, particularly in light of the Russia-Ukraine conflict's impact on food security. Secretary-General Mene highlighted the need for intra-African trade in agricultural produce to reduce dependency on imports. Collaborative efforts with countries like Zimbabwe to enhance grain storage and processing capabilities signify a step toward achieving food self-sufficiency on the continent. Looking ahead, Mene called for governments to reduce barriers to trade by implementing the AFCFTA agreement and imposing zero tariffs on essential agricultural products. He emphasized the importance of investing in technology for efficient grain storage and enhancing connectivity to facilitate trade across regions. By leveraging the AFCFTA's framework and prioritizing agricultural self-sufficiency, Africa aims to enhance its food security and promote economic growth.