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SOLVE TRADE BARRIERS, WORLD BANK TELLS NIGERIA, OTHERS

17th February 2023

World bank logo

By  Edidiong Ikpoto

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In order to reap the benefits of the African Continental Free Trade Area,
non-tariff barriers and hurdles affecting cross-border goods crossings must be
addressed, according to the World Bank Group.

In a new report titled “Can African trade integration be a game changer?”, the
Washington-based bank noted that the AfCFTA, which hopes to connect 54 countries
with a combined population of 1.3 billion and GDP of $3.4tn, has several
challenges to overcome.

It noted that African businesses should also see the opportunities, as its
research suggests that the agreement has the potential to bring significant
economic and social benefits in the form of faster economic growth, higher
incomes, and less poverty.

The World Bank also stated that in addition to ministries of trade involved in
the negotiations, other government agencies in each country should also become
familiar with AfCFTA and learn the key role they may be called to play in its
implementation on the ground.

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It added that tackling non-tariff barriers and hurdles affecting cross-border
crossings of goods was paramount, as well as reducing barriers to trade in
services because each country has its own regulations covering industries such
as logistics and transport, financial services, tourism, and communications.

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The report partly read, “The agreement faces several challenges. However. the
African private sector, including SMEs that could benefit from AfCFTA, should
become more familiar with the different chapters of the treaty and learn how the
topics addressed – such as the liberalisation of trade in services – can be
leveraged to boost their businesses.

“So, signing the agreement is just the first step. It will take much more to
unlock AfCFTA’s potential gains in trade, investment, and jobs. African nations
will need to support the AfCFTA Permanent Secretariat, based in Accra, Ghana,
which is charged with administering the agreement.  Domestic laws and
regulations will need to be harmonised with the agreement’s protocols on
investment, intellectual property rights, competition and digital trade.”



To reap the gains of the agreement, the World Bank emphasised that stakeholders
must encourage progressive liberalisation of cross-border trade and investment
policies in line with AfCFTA protocols to establish the groundwork for regional
value chains in Africa.

It also advised member states to strengthen cross-border trade and investment in
services by facilitating trade in digital services, removing FDI restrictions,
and liberalising the movement of workers.

“It is now up to the member states – and champions within to lead – working
together with the private sector and civil society, to ensure that the promise
of the AfCFTA can finally be a game changer for Africa and reap its many
benefits for its people,” the report read further.

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may not be reproduced, published, broadcast, rewritten or redistributed in whole
or in part without prior express written permission from PUNCH.

Contact: theeditor@punchng.com

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GEMIUS SA

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THE KANTAR GROUP LIMITED

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AUDIENCEPROJECT APS

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DEMANDBASE, INC.

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ARRIVALIST CO.

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COMMANDERS ACT

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NEODATA GROUP SRL

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INNOVID LLC

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NEUSTAR, INC., A TRANSUNION COMPANY

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SALESFORCE.COM, INC.

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ONLINE SOLUTION

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GP ONE GMBH

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THE MEDIAGRID INC.

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CINT AB

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MOLOCO, INC.

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ADTRIBA GMBH

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EBAY INC

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