Ebrahim Patel, the South African Minister of Trade has urged businesses on the African continent to increase Intra-African Trade.
This he said, will create large African markets so that “we have Africa champions emerging in each of the sectors able to take matters forward.”
According to Mr. Patel also the Chairperson of the Council of Ministers of Trade of AU Member States, the development for ordinary citizens on the continent would mean more jobs, more economic opportunities and “Africa’s moments to say we want to industrialize.”
Briefing journalists after the Eight meeting of the African Continental Free Trade Area (AfCFTA) Council of Ministers responsible for trade in Accra on Saturday, Mr. Patel added: “We can’t be simply generators of raw materials for the workplaces, the factories of Asia, Europe and the Americas. Africa’s moments for industrialization is here and now”.
He stated that plans are afoot to ensure that some 88 percent of all products on the tariff books across the continent are traded based on preference.
Mr. Patel further indicated that more than 850 additional products have also been identified for which rule of origin have been agreed, stressing that this package now goes to the heads of state and if agreed, that package becomes a basis for trade to commence.
Wamkele Mene, General Secretary of (AfCFTA) indicated that with the introduction of the Pan African Payment and Settlement System (PAPSS). Africans can trade using local currencies.
This he said is a good tool for boosting intra-African trade contending that it will make a positive difference particularly for small medium enterprises for whom the cost of currency convertibility is a significant barrier to their competiveness as well as their ability to access new markets across the African continent.
AfCFTA’s General Secretary disclosed that an automobile fund of about 1.2 billion dollars from the Afreximbank has been earmarked to assist countries that want to venture into the automobile value chain.
“We see the automobile sector as a very strong driver for Africa’s industrialization as well as an opportunity for inclusivity because all countries will have an opportunity to participate in the value chain” Mene noted.
Meanwhile, a statement issued in Accra among other things on trading services disclosed that negotiations are in an advanced stage of completion with 46 member states having submitted their schedules of specific commitments.
It further noted that the Council of Ministers directed that the negotiations be concluded by 30 June 2022.