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The blue room of the Palais des Congrès in Cotonou (economic capital of the country) hosts on April 27 and 28, 2023, a consultation workshop for the formulation of a national strategy for the implementation of the African Continental Free Trade Area ( ZLECAf) in Benin. Entered into force on 1is January 2021, the ratification and operationalization of the AfCFTA Agreement has so far counted 46 countries out of the 55 on the continent; while 54 have only signed it like Benin which is one of the nine (09) on the waiting list. In view of the interest of Beninese private sector actors in this information and awareness-raising workshop, the delay in ratification could be quickly filled after the technical assistance provided by the United Nations Economic Commission for Africa (ECA) in Benin in order to enable it to accelerate the steps in its march towards the vast continental market.
Aline ASSANKPON
Decided by the Heads of State and Government of the Member States of the African Union, the negotiation process, launched in June 2015, was signed on March 21, 2018 in Kigali, Rwanda; thus leading to the creation of the African Continental Free Trade Area (ZLECAf). Entered into force on 1is January 2021 for its operationalization, this agreement aims to create a single market for goods, services and the movement of people in Africa. This is to ensure a deepening of the economic integration of the African continent and in accordance with the pan-African vision of a “Integrated, prosperous and peaceful Africa” as set out in Agenda 2063.
According to a study by the United Nations Economic Commission for Africa (ECA), the implementation of the AfCFTA Agreement should lead to the liberalization of the market for goods and services in Africa, the elimination of tariff barriers and non-tariff trade, the establishment of a mechanism for the settlement of commercial disputes between States and the maintenance of an institutional framework for the management of the ZLECAf. Similarly, the elimination of customs duties should lead to the enlargement of markets and provide new opportunities for intra-African trade.
“Market integration should help create an enabling environment for efficiency gains, through economies of scale and scope and increased competition, and enable countries to better access and leverage resources (labour, capital and technology) use more efficiently. This should ultimately result in greater diversification of African economies and the promotion of regional value chains. The development of these chains should in turn contribute to strengthening the continent’s efforts to integrate into global value chains while maintaining a greater share of value addition at the national and regional levels” highlights the ECA study.
But it must be recognized that African countries will benefit from different ways of opportunities and gains, depending in particular on performance and infrastructural and institutional capacities for production and trade facilitation. According to the ECA, the most competitive and industrialized economies will be better placed to take advantage of the opportunities offered by larger markets.
Benin has signed the agreement but has not yet ratified it
For the most vulnerable countries like Benin, which have a low and undiversified productive capacity, the main advantages could result from their alignment to highlight the main commercial and value-added creation opportunities, as well as the constraints, the measures and the means necessary to take full advantage of national, regional and global markets in the context of the AfCFTA.
When we know that the AfCFTA stimulates economic growth, increases intra-African trade, accelerates industrialization and thus contributes to structural transformation and sustainable development in Africa. Indeed, according to ECA simulations in 2022, its implementation should by 2045 increase trade: agri-food by 14.1%, services and industries by 39.2% respectively and Energy/mines by 16.1 %.
Vulnerable countries that are still lagging behind, as is the case of Benin, which has signed the agreement but has not yet ratified it, the United Nations Economic Commission for Africa (ECA) has decided to provide technical assistance to the Ministry of Industry and Trade which provides national sectoral leadership in the conduct and implementation of the ZLECAf, in collaboration with the African Union through the ZLECAf Secretariat.
The official opening of the workshop is punctuated by two speeches: those of the Coordinator of the United Nations Office in Benin, Mr. Salvator NIYONZIMA and the Secretary General of the Ministry of Industry and Trade, Mr. Amzat SALAMI; followed by three presentations on: “Why a Free Trade Area? » ; “The rules of origin, the foundation of the ZLECAf” and finally Benin’s progress at the level of the ZLECAf”; followed by group work.
In view of the interest of the various actors and the quality of the exchanges, it is safe to say that Benin is truly committed to the formulation of a national strategy and the development of a program priority actions through broad public consultation with all public and private stakeholders.
Through the various communications, the ECA consultants presented the Agreement, in its content and its socio-economic implications to the stakeholders. Through group work, the AfCFTA Focal Point at the Ministry of Industry and Trade, supported by the Consultants, tries to collect their points of view, aspirations and concerns with regard to the opportunities and risks related to the implementation of the Agreement in the Republic of Benin. In achieving the objectives of the workshop, the actors set out to collect the weak points, the shortcomings and the approaches to solutions. This is an opportunity for the Consultants to sensitize and guide the actors in order to bring them to the appropriation of the ZLECAf so that they can benefit from it from its implementation.
The formulation of a national strategy in Benin is intended to be inclusive and participatory; since it takes place in a multi-stakeholder and diversified framework; particularly with regard to the content, issues and challenges of the ZLECAf for the country. Among the actions to be taken, we can retain institutional capacity building; the development of information and awareness tools; support for the negotiation process as well as the formulation of studies and policy documents including citizen strategies.
On a note of hope, the Coordinator of the United Nations Office in Benin, invited stakeholders to make a quality contribution to the work so that Benin can get the most out of the implementation of the AfCFTA: “Benin has signed the Zlecaf agreement, but has not yet ratified; I dare to believe that Benin will draw the best from West Africa like the ECOWAS countries which have already benefited from the support of the ECA to develop national and sub-regional strategies within the framework of Zlecaf in order to initiate the effective implementation of the Action Plan” declared Mr. Salvator NIYONZIMA.