Public Management

African nations expand guided trade initiative within the AfCFTA framework

African nations expand guided trade initiative within the AfCFTA framework
Thursday, 18 January 2024 16:18

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).

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Côte d’Ivoire establishes sovereign fund to manage public assets Fund to finance infrastructure, stabilize economy, build long-term...
Evidence shows mobile money taxes reduce usage and revenue Most countries exceed the 0.2% threshold that triggers cash fallback Policies...
CAR minister meets COBAC on FNGI operational rollout Talks seek framework, technical support, compliance with regional rules $18M fund...
WAEMU member states plan to raise CFA3,075.5 billion ($5.53 billion) in Q2 2026, up 18.3% year-on-year. Côte d’Ivoire will lead issuance with...
Most Read
01

Driven by above-average growth and rapidly expanding demographics, Francophone Africa is emerging as...

Francophone Africa: A Rising Economic Giant With Weak Internal Trade
02

Algeria launches bid for two NGSO satellite telecom licenses Move aims to expand broadband ac...

Algeria Opens Satellite Market to Competition, Inviting Global Operators
03

EBID aims to allocate nearly 41% of its commitments to environmentally and socially impactful projec...

EBID Charts Green Shift to Finance West Africa’s Growth
04

Coca-Cola unit trains 260+ SMEs in Namibia business skills Program targets women, youth, disabled...

Over 260 Namibian SME Owners Trained as Sector Faces Mounting Losses
05

Four major operators—Mauritel, Mattel, Rimatel, and Chinguitel—submitted a combined bid of ...

Mauritanian Telecom Operators Submit $27 Million Combined Bid for 5G Licenses
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.