AfCFTA: Genesis, Dimensions and Prospects for African Corporates

The AfCFTA, is a landmark trade agreement which commits African countries to remove tariffs on up to 97 percent of goods, progressively liberalize trade in services, promote investment, and address a host of other non-tariff barriers. The AfCFTA is, in many ways, a treaty that will transform Africa from a fractured, commodity-dependent group of economies into a vibrant, integrated single market of over 1.2 billion people with a combined GDP of US $3.4 trillion.

As Africa begins the journey towards the full implementation of a common market under the AfCFTA, it is imperative that the requisite competencies and capacity for local industrial activities are created to enable all countries to benefit from the single market arrangements. Afreximbank, the key partner to the AU under the implementation of the AfCFTA, has over the last few years implemented several initiatives to promote, not only intra-African trade, but extra-African trade and investments.

Afreximbank, through the Trade Intelligence Solutions is developing a training programme that focuses on the business implications of the AfCFTA for African Corporates. The objectives of the course range from providing a holistic understanding of AfCFTA, its genesis and dimensions to assessing the outcomes of the ongoing negotiations, examining the challenges and opportunities that underlie the negotiations and the Agreement at large, exploring its future prospects and stimulating Africa’s business executives to capitalize on the Agreement, while supporting its end objectives, to the benefit their corporations and the continent.

The proposed training programme will enable African Corporates to fully maximize the benefits of the AfCFTA. The business impacts of the AfCFTA, rules of play, potential advantages and disadvantages, etc. are some of the key learning outcomes that will shape the course foundations.

i)         Deepen the knowledge of the participating African business community about regional integration in Africa, including the challenges that were eventually overcome.

ii)       Enhance the overall understanding of the Agreement and key provisions and implications, understanding of the different protocols e.g. Rules of Origin, Schedules of Tariff and Services offers, intellectual Property Rights and investments, Dispute Settlement.

iii)     Ensure that African Corporates understand and are able to comfortably navigate the rules and procedures under the evolving AfCFTA. This will include providing information, advice, and practical assistance to participants where necessary.

iv)      Deepen participants knowledge on how to trade and invest under AFCFTA; Risk Analysis; market identification techniques and market entry strategies, AFCFTA Institutional mechanisms, Intra- African trade and investment financing instruments and sources.

v)        Provide a channel to guide the would-be and existing exporters of goods and services on the developments and business opportunities in Africa under the AfCFTA and them with knowledge required to overcome tariff and non-tariff barriers - e.g. from logistics; government agencies and Connect to Intra-African markets.

vi)      Provide an in-depth understanding of the operational instruments and the facilitating Mechanisms PAPSS, Transit, Standards, Adjustment Fund, ATG etc.

Create awareness, promote and drive sales for the Bank’s traditional trade finance products and facilities as well as the Bank’s other digital solutions.