In a significant development for the operationalization of the African Continental Free Trade Area (AfCFTA), 24 new countries are set to join the Guided Trade Initiative in 2024. Wamkele Mene, the Secretary-General of AfCFTA, announced this expansion during a roundtable discussion on January 16, 2024, at the 54th World Economic Forum in Davos.
The Guided Trade Initiative, launched in October 2022, aims to test the operational, institutional, and legal environment of the AfCFTA agreement. Already joined by seven countries (Ghana, Cameroon, Rwanda, Kenya, Mauritius, Egypt, and Tanzania), the initiative facilitates the free exchange of 96 products with tariff preferences.
Mene revealed that out of the 47 countries that ratified the African Continental Free Trade Area, 31 will join the Guided Trade Initiative in 2024, marking a substantial increase from the seven countries that participated in 2023. The initiative covers a range of products, including pharmaceuticals, rubber, pasta, tea, coffee, steel, and wood. Notably, participants benefit from tariff preferences, and rules of origin are applied to the traded products.
One of the key components of the initiative is the use of the Pan-African Payment and Settlement System (PAPSS), a revolutionary financial market infrastructure facilitating instant cross-border payments in local currencies across African markets. Mene emphasized that this multilateral settlement system is expected to save the continent over $5 billion annually in payment transaction costs, streamlining cross-border transactions and reducing reliance on strong currencies.
The expansion of the Guided Trade Initiative aligns with the broader goals of the AfCFTA, which anticipates a 53% increase in intra-African trade, transforming the continent into an attractive market with a potential consumer base of 1.3 billion, according to estimates by the International Monetary Fund (IMF).
It’s a common scene in any Lomé (Togo) market, but it’s telling. A customer hands a 10,000 CFA franc...
Egypt’s handset market is projected to leap from $2.5 billion in 2025 to $4.8 billion by...
Burkina Faso ends Target Malaria, a GMO mosquito project funded by the Gates Foundation. The ...
Egypt and UNECA launched a five-day workshop in Cairo to strengthen maritime tax audits and IFRS-b...
Sadot and Vodacom’s MOTI launch Africa’s first telco-powered farm-to-fork app to cut crop losses a...
Southern Africa's critical minerals are vital but underused due to systemic issues, per the WEF, DBSA, and McKinsey report. Policy uncertainty, poor...
Africa’s airlines are renewing fleets with modern jets, driving demand for advanced maintenance and repair services. The continent’s MRO market is...
Namibia has launched a national campaign to renovate dilapidated schools across all 14 regions and 121 constituencies. The initiative aims to upgrade...
Burkina Faso and Oman have signed a landmark investment agreement focusing on strategic sectors: mining, agriculture, and energy. The partnership,...
• Grand Egyptian Museum to open November 1 near Giza Pyramids• TikTok named official digital partner for live-streamed ceremony• GEM to display 100,000+...
• Brazzaville hosts first Mwassi festival for African women filmmakers• Festival offers screenings, panels, and professional training workshops• Women...