Xinhua News Agency, Nairobi, January 1st, title: The official launch of the African Free Trade Area is expected to enhance Africa’s development resilience
Xinhua News Agency reporter
On January 1, 2021, the free trade launch ceremony of the African Continental Free Trade Area was held online, marking the official launch of the African Free Trade Area. Analysts believe that although the construction of the African Free Trade Area faces many challenges, it highlights the determination of African countries to promote economic transformation and is expected to enhance Africa’s development resilience.
United Nations Deputy Secretary-General Amina Mohamed said at the launching ceremony that the African Free Trade Area has created an opportunity for Africa to return to the track of achieving the Sustainable Development Goals.
According to the relevant agreements, starting from January 1, 2021, the members of the African Free Trade Area will gradually eliminate tariffs on goods other than exception products in accordance with product categories and their respective circumstances. The official website of the Free Trade Zone and the supporting data monitoring platform have been launched, and the African Free Trade Zone Secretariat in Accra, the capital of Ghana, has also been launched.
On July 7, 2019, the African Free Trade Area was officially announced, but due to the new crown epidemic and other reasons, the African Continental Free Trade Agreement failed to be officially implemented on July 1, 2020 as originally planned. Up to now, 54 of the 55 members of the African Union have signed the African Continental Free Trade Framework Agreement, and 34 members have completed relevant legal procedures in their countries and become full members of the free trade zone.
Analysts said that after the official launch of the African Free Trade Area, follow-up construction will face many challenges, such as large gaps in economic development among members, lack of professional talents, insufficient infrastructure, as well as the impact of the epidemic, political turmoil and security issues. Due to the coexistence of the African Free Trade Area and African subregional organizations, the degree of integration is not synchronized, and the effectiveness of the Free Trade Agreement may also be weakened.
However, experts pointed out that in the long run, the African Free Trade Area is expected to accelerate the promotion of intra-regional trade exchanges, create job opportunities, and enhance the attractiveness of the African continent for foreign investment. According to a report released by the World Bank in July 2020, if the African Free Trade Area is fully implemented, Africa will receive nearly US$450 billion in actual benefits by 2035. By 2035, Africa’s total exports will increase by nearly 29%, of which intracontinental exports will increase by more than 81%, and exports to countries outside Africa will increase by 19%.
Amina Mohamed said that the African Free Trade Area is expected to increase the trade of industrial products among African countries by 25% to 30%, promote the process of African industrialization, and help African economies achieve sustainable recovery while responding to the epidemic.
The launch of the African Free Trade Area once again demonstrated the determination of the African continent to promote economic transformation and control its own destiny. The rotating chairman of the African Union and the President of South Africa, Ramaphosa, recently publicly stated that the official launch of the African Free Trade Area is one of the most important milestones in the process of African integration, and it is also a time for Africa to show the world that “Africa takes its destiny in its own hands.” The loudest statement.
The Secretary-General of the African Free Trade Area Secretariat, Mene, pointed out that Africa’s foreign trade is overly dependent on the export of primary commodities, and Africa must actively promote the construction of the African Free Trade Area to realize the fundamental structural transformation of the African economy.
The African Free Trade Area may also bring new opportunities for China-Africa economic and trade cooperation. Rwanda economic analyst Teddy Kaberuka believes that the African Free Trade Area will help Rwanda expand its market and attract more Chinese investors to the local manufacturing industry.
In an interview with Xinhua News Agency, China’s consultant to the African Development Bank, Bu Yu, said that as the African Free Trade Zone begins to officially operate, China can promote trade through investment and promote the development of Africa’s agricultural and mineral products processing, home appliances, textiles, medicine and other industries. Create “Made in Africa”. (Notewriter: Ding Lei; Participating reporters: Wang Hongjiang, Cao Kai, Zheng Yangzi, Guo Jun, Lu Tianran, Zhang Gaiping, Jing Jing, Wu Changwei, Xu Zheng, Wang Ping)
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(Editor in charge: Wang Jupeng)
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