The African Development Bank Group (AfDB) and the African Union (AU) recently signed a< > $4.8 million grant agreement for the establishment of the African Continental Free Trade (AfCFTA).
Approved by the Bank's Board of Directors on April 1, 2019, this grant agreement is in line with
as part of the institution's actions to accelerate the implementation of the Agreement on
free trade, a real lever for the economic transformation of the continent and the integration of the 55 countries.
Albert Muchanga, Commissioner for Trade and Industry of the African Union, initialled the document on behalf of the continental organization, and Andoh O. Mensah, representing the Director of br Department of Industry and Trade Development of the Bank, for the bank, thus giving
the start of the implementation of the project.
As a reminder, African leaders meeting in early July in Niamey, Niger, had launched the phase of implementation
work of the free trade agreement concluded in March 2018. At present, 54 states have signed the agreement and
are about to start formal negotiations before the actual implementation of the agreement, scheduled
in July 2020.
"The AfCFTA will work, and we are confident that by July 1, all 55 countries will have signed
and ratified the agreement to mark the start of the intra-African process," said Albert Muchanga,
and urges countries to take advantage of this period to conclude parliamentary work.
Muchanga praised the Bank< firm and consistent support in the implementation process of br/> the Agreement, indicating that the grant would be used appropriately to accompany the protocols relating to
the structure and mandate of the AfCFTA Secretariat.
The AU currently has an interim secretariat, whose mission is to prepare the structure
organizational of the standing administrative body and its work programme, and to take care of
related issues, including those relating to the budget.
At the Niamey Summit, it was decided that the AfCFTA Secretariat would take up residence in Accra, Ghana.
The Continental Free Trade Agreement, bringing together 55 African countries whose total gross domestic product exceeds
$2.5 trillion could help the continent create the world's largest free trade area.
It is a powerful integration asset that can raise the level of intra-African trade, estimated
currently at about 16%.
The trade deal is expected to increase intra-African trade to 35 billion
dollars per year, facilitate the movement of goods, services and people across the continent and reduce
$10 billion in imports, while boosting agricultural and industrial exports,
7% and 5% respectively.
Andoh O. Mensah will say that this agreement will contribute to stabilizing African countries, and thus
enable small and medium-sized enterprises to thrive. It will also speed up the process
industrialization of the continent and thus lift millions of people out of poverty.
"If the AfCFTA is accompanied by trade facilitation reforms, a reduction in non
tariffs, improved infrastructure and policy measures to encourage employment and >< Private sector investments, it will promote poverty reduction and development
socio-economic across the continent," he said, adding that the goals of the AfCFTA are right
in line with the Bank's five priorities of the High 5.