The AfCFTA is expected to
boost intra-African trade by 33% once full tariff liberalization is
implemented, attracting additional intra-African investments and creating
market opportunities to foster Africa’s industrialization through regional
value chains, according to a report by UNCTAD. If implemented successfully, the
AfCFTA has a potential of generating $6.5 trillion by 2030. However, lack of
adequate capacity is a major threat to the successful implementation of the
AfCFTA.
For the AfCFTA to be
implemented successfully in Ghana, the government must address these capacity
constraints:
- Knowledge:
One of the major reasons why Africa has not benefited from multilateral
trade for many decades is due to lack of adequate professionals in Trade Law
and Trade Policy. There is the need for capacity building in these areas. We need
more trade lawyers and trade policy analysts in the country to support with
trade negotiations at various levels.
- Institutional strengthening: Our
institutions are very weak and it makes implementation of signed and ratified
agreements very challenging. For Ghana to successfully implement the AfCFTA, we
must strengthen the relevant MDAs and allow them to function effectively
without any political interferences. This is very crucial because institutions
help to create the needed enabling environment for trade to happen quickly.
- Infrastructure: The country’s
infrastructure capacity is very low and it will serve an impediment for the
smooth implementation of Trade Facilitation measures. There is the need for a
massive investment in infrastructure to build more and also strengthen already
existing infrastructure to withstand the pressures that an open economic market
will have on the country. Especially, since Ghana is hosting the AfCFTA Secretariat.
- Private Sector and CSOs Capacity is
Limited: Unfortunately, no preliminary study was done to ascertain the
potential impact of the AfCFTA on the private sector in Ghana, hence making it
very vulnerable to competition within the continental single market. Private
sector professionals must update their knowledge in the various aspects of
trade law and trade policy in order to understand the potential impact of trade
agreements on their businesses. Civil society’s role in trade policy making is
very important to ensure equity and fairness and be able to hold government
accountable. Hence, civil society
leaders
must also develop their capacity in understanding how trade policy can benefit
the people they serve.
Addressing these various
capacity gaps will go a long way in making Ghana and in a broad sense Africa
ready for intra trade that serves a tool in the sustainable development agenda.
Isaac
Hubert Arthur
Executive Director
ACINTaD
Read more via GNA website