African Union Heads of
State and Government have underscored the urgent need for member states to
kick-start trading activities, under the African Continental Free Trade Area
(AfCFTA). The decision was adopted during a virtual meeting of the 13th Extra
Ordinary Session of the Assembly of the Union on the AfCFTA, held on Saturday 5
December 2020, under the Chairmanship of H.E.
Mr Cyril Ramaphosa, President of the Republic of South Africa and Chairperson
of the African Union (AU). The summit is taking place just four weeks
before the AfCFTA commences trading on the 1st of January 2021, to consider the
adoption of the legal instruments that will facilitate its operation.
Welcoming all the
participants to the 13th Extraordinary Session of the Assembly of the Heads of
State and Government of the African Union, Chairperson
Ramaphosa said “today we stand on the cusp of a new era in the progress of
our continent.
The moment that we have all been working painstakingly towards has finally
arrived…We are all filled with a great sense of pride at how far we have come
to reach this moment”.
The AU Chairperson
further recalled the collective journey embarked upon over four decades ago,
with the adoption of the Monrovia Strategy in 1979, followed by the Lagos Plan
of Action in 1980, the Abuja Treaty in 1991 and the subsequent Decisions and
Declarations adopted during previous Summits relating to the economic
development and integration of the African continent. “And now, we are about to
witness the realisation of one of the flagship projects of Agenda 2063.” Stated
the Chairperson of the Union, with great relieve.
“Throughout this process, we have stood united, with 55 sovereign AU Member
States rallying together, despite different levels of economic development and
diverse strategic priorities. The commencement of trading under the AfCFTA on
the 1st of January 2021 is one of the most significant milestones in the
continental integration project”. Noted the AU Chairperson. He underlined that,
this is going to be the clearest affirmation that Africa is determined to take
charge of its own destiny, and that its success and development is
fundamentally tied to harnessing the potential and energies of her citizens.
According to President Cyrl Ramaphosa, the AfCFTA
will boost intra-African trade, it will promote industrialisation and
competitiveness and contribute to job creation, and it will unleash regional
value chains that will facilitate Africa’s meaningful integration into the
global economy. The AfCFTA will also improve the prospects of Africa as an
attractive investment destination. It will help advance the empowerment of
Africa’s women, by improving women’s access to trade opportunities which will
in turn facilitate economic freedom for women, and expand the productive
capacity of countries. “To support this, we must strengthen women’s
participation in the continental economy by ensuring there is greater public
procurement earmarked for women-owned businesses. We must ensure that there is
sufficient support given to women-owned SMMEs and cooperatives in both local
and regional economies” Emphasised Chairperson Ramaphosa.
H.E. Mr Moussa Faki Mahamat, Chairperson of the AU Commission on his
part expressed satisfaction on the millstone achieved in the implementation of
the AfCFTA. He said it is the fulfilment of the dream long aspired by the
founding fathers of the Organization of
African Unity (OAU), who have always wanted to create an African common
market.
Moussa Faki noted that, for this dream to finally become a reality, this
continental project had to go through several stages. First was the signing in
1991 of the Treaty establishing the
African Economic Community, followed by the signing in March 2018 in
Kigali, Rwanda, of the Agreement establishing the AfCFTA, during which 44
countries signed the Agreement, and it is with great satisfaction that in
record time 34 countries have ratified the legal instrument on the AfCFTA.
This, the AUC Chairperson said, shows the determination by member state to
quickly achieve the economic integration of the continent. (See complete speech
of the AUC Chairperson on the AU website: www.au.int )
Speaking from the
headquarters of the AfCFTA Secretariat in Accra, Ghana, the Secretary General
of AfCFTA, Wamkele Mene stressed
that integrating 55 markets will not be easy but giving up is not an option. He
recalled that in August 2020, the Government of Ghana officially handed over
the AfCFTA Secretariat building to the AUC
Chairperson, H.E. Moussa Faki Mahamat. Reiterating that, H.E. President Akufo-Addo has given his
full support and is committed to see the AfCFTA truly commercially start off
trading by the announced date of 1st of January 2021. “Today, 54 countries have
signed the agreement while 34 countries have deposited their instruments of
ratification, and 41 countries/customs unions have submitted their tariff
offers, including the EAC and ECOWAS” underlined the AfCFTA SG. He however
noted that, none of this remarkable progress would have been achieved without
the unwavering leadership and commitment of H.E. President Mahamadou Issoufou, the Champion and Leader of the
AfCFTA”.
SG Wemkele called on AU Member States to aggressively implement the AfCFTA
as one of the tools for effecting a fundamental structural transformation of
Africa’s economy and placing Africa on a path of long term industrial
development. He said
“women in trade, young Africans and SMEs, confront significant challenges when
attempting to benefit from trade agreements”. Adding that, for the AfCFTA to be
inclusive and to ensure shared growth across the continent; women, young
Africans and SMEs have to be at the heart of its implementation. (See complete
speech of SG Wamkele Mene on the AU website: www.au.intt )
Worth recalling that
it is the AU Assembly Decision adopted at its 33rd Ordinary Session held in Addis Ababa, Ethiopia, on 9th – 10th
February, 2020, that recommended the holding of this 13th Extraordinary Summit
to approve all instruments required for the start of trading under the AfCFTA.
During the meeting, the Heads of State expressed their appreciation to the
report presented by H.E. Mr. Issoufou Mahamadou, President of the Republic of
Niger, the leader and Champion of the AfCFTA, and adopted the recommendations
thereof on the progress achieved on the establishment of the African Continental Free Trade Area
(AfCFTA). They requested the AfCFTA leader and Champion to continue his
efforts to ensure that all fifty-five (55) African Union Member States become
state parties to the AfCFTA Agreement.
The Assembly also
commended H.E Nana Addo Dankwa
Akufo-Addo and the people of Ghana for offering to host the secretariat of
AfCFTA in Accra thus, fulfilling the African dream. The Heads of State further
commended the role played by all Member States, the African Union Ministers of
Trade (AMOT) and other AfCFTA Negotiating Institutions, the African Union Commission (AUC), the Regional Economic Communities (RECs)
and the AU cooperating partners, for the significant progress made in advancing
AfCFTA negotiations. They congratulated all the countries that have deposited
their instruments of ratification of the AfCFTA
Agreement, and called on those member states that have not yet ratified the
Agreement to do so as soon as possible in order to increase the size of the
market and the volume of trade under the AfCFTA.
The Assembly finally
deliberated that the exchange of tariff concessions between State Parties will
be conditioned by the principle of reciprocity in terms of product line
coverage, and tariff reduction schedules that are aligned with the agreed
modalities. They endorsed the declaration on the Risk of Investor-State Dispute Settlement (ISDS) with respect to
COVID-19 pandemic related measures, as adopted by the African Union Ministers of Trade (AMOT), and the establishment of
the African Business Council (AfBC)
which is part of the Architecture of the AfCFTA.
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