Africa free trade area test phase: First shipment from Tunisia arrives Kribi port.

A statement from the Kribi Port Authority, circulated Friday, said the cargo was being imported by INODA Industries Sarl, a company specialised in manufacturing and distributing paints and other coating materials.

The body said: “The operation of the above-mentioned shipment is of utmost importance as it falls within the framework of the test phase of the implementation of AfCFTA, where Cameroon is a pilot country with six other countries”.

“The objective of AfCFTA is to ensure the free circulation of goods and services that are produced in Africa or with African raw materials, which is the case of the material expected in the port of Kribi.” 

It added that: “The shipment of resin will thus be a first in the port of Kribi and confirms the status of the port as first Cameroonian port involved in a free-trade operation between two African countries”.

“It is equally worth noting that the handling of such cargo will mark the beginning of the reduction of customs tariffs on a product under the AfCFTA regime. The gradual reduction plan is determined by African countries and is broken down as follows: 90% of tariff lines will be reduced in 10 years in Least Developed Countries, LCDs and five years in developing countries. 7% of products (products considered as sensitive products) will be reduced in 13 years in LCDs and in 10 years for other countries. The remaining 3% of products will be exempted from tariffs and will therefore not be subject to liberalization,” the statement also mentioned.

The African Continental Free Trade Area, AfCFTA, it should be said, is a free trade area encompassing most of Africa. 

It was established in 2018 by the African Continental Free Trade Agreement, which has 43 parties and another 11 signatories, making it the largest free-trade area by number of member states, after the World Trade Organisation. It is the largest in population and geographic size, spanning 1.3 billion people across the world’s second largest continent. 

The different committees voted for the African Continental Free Trade Area have been working to move the agreement from talks to action. 

The operational phase of AfCFTA was launched during the 12th Extraordinary Summit of the African Union held in Niamey on July 7, 2019.

The launching ceremony included: “A roll call of honour,” during which the 27 countries that had ratified the instruments of the AfCFTA as at 7th July 2019, were announced. The 28 countries which had signed but not yet ratified were also announced with only one member state, Eritrea, yet to sign. 

According to the World Bank, the deal creates a continent-wide market embracing 54 countries with 1.3 billion people and a combined GDP of US$3.4 trillion. 

Its first phase, which took effect in January 2021, would gradually eliminate tariffs on 90 percent of goods and reduce barriers to trade in services. 

That could raise income by 7 percent, or $450 billion, by 2035, reducing the number of people living in extreme poverty by 40 million, to 277 million, according to a World Bank report published in 2020. 

The report, “Making the Most of the African Continental Free Trade Area: Leveraging Trade and Foreign Direct Investment to Boost Growth and Poverty Reduction,” is intended to be a guide for policy makers charged with carrying out the agreement. 

To maximise its benefits, the first step will be to conclude planned negotiations on investment, e-commerce, and intellectual property. 

The report also recommends building grass-roots support for and understanding of the agreement, simplifying red tape to encourage investment, and pairing the deal with a “complementary agenda” that includes training and advice for national trade ministries charged with supervising compliance and administration.