Expanding AfCFTA pilots can help meet 2035 trade targets

While implementation challenges remain, pilot programs show promise in advancing the agreement's goals. 

The Guided Trade Initiative between Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania, Tunisia and Rwanda saw close to 100 products approved for trade in this pilot program. This allowed first-ever shipments like Kenyan batteries and Rwandan coffee to Ghana, reducing paperwork burdens through rules of origin certificates.

Lester Kiewit is joined by Crystal Orderson, discussing AfCFTA's targets to increase trade between African countries. 

Crystal Orderson adds that the certificates "really mean these products are eligible for lower customs fees." By streamlining trade processes even between a small group of countries, the initiative has demonstrated how the AfCFTA's tariff reductions can translate into real commercial benefits on the ground. 

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Scaling up such pilots across regions will be key to delivering the estimated $450 billion in intra-African trade and the 81% increase in exports projected by 2035, according to the World Bank. Regional bodies can identify additional sectors and trading partners to gradually expand guided initiatives. Technical support from the AU and multilateral development banks will also help address challenges as more nations participate.

Knowledge sharing of best practices between the initial pilot countries and subsequent participants will further support progress on the AfCFTA's goal of boosting Africa's economic growth, trade and integration for the benefit of all.

Côte d'Ivoire, a significant player in the cocoa industry, has strengthened its economic standing through strategic partnerships with RMB and the Multilateral Investment Guarantee Agency, a member of the World Bank Group. These collaborations secured short-term funding support, crucial for sustaining a 6.6% growth rate and bolstering economic stability. The involvement of reputable institutions has enhanced Côte d'Ivoire’s appeal to foreign investors and underscored its importance in AfCFTA and Economic Community of West African States (ECOWAS), highlighting its role in promoting regional and continental trade and economic integration.

Africa Focus presented by Crystal Orderson, is brought to you by RMB. To find out more about RMB’s focus on Africa’s Investment opportunities, visit the official RMB website.