IMMINENT RATIFICATION OF THE AFCTA IS A GOOD STEP
The imminent ratification of the Africa Continental Free Trade Area (AfCTA) will propel Tanzania’s trade to more prosperous grounds by giving local goods an entry into the African regional market without major roadblocks.
As the ministry of Industry and Trade awaits the formal ratification of the treaty once parliament resumes end of August, an assessment of all the benefits that will accrue by entering into the trade deal shows that Tanzania, just like other partner states stands to reap major rewards.
The AfCTA is a treaty comprising 54 out of 55 African states. It was signed on March 21, 2018, with trade commencing as of 1 January 2021. Tanzania, however, is among countries that are yet to ratify the free trade agreement – joining a list of other Sub-Saharan African states yet to enforce the trade deal.
But, owing to the beguiling terms that make the trade agreement worth the ink, Tanzania stands a chance to gain access to the open African market. According to terms of the AfCTA, up to 90 percent of tariffs will be removed, allowing free access to commodities, goods, and services across the continent. This provides an opportunity for Tanzanian traders to sell their products beyond Tanzanian or the East African Community borders. In essence, by joining the free African trade area Tanzania will expose its products to the over a billion African population.
Furthermore, the AfCTA general objectives include: creating a single market, deepening the economic integration of the continent and establishing a liberalised market through multiple rounds of negotiations. It also aims to aid the movement of capital and people, facilitating investment, this is in addition with moving towards the establishment of a future continental customs union
As well, the AfCTA aims to achieve sustainable and inclusive socioeconomic development, gender equality, and structural transformations within member states, and also enhance competitiveness of member states within Africa and in the global market
Adding to the above, the trade deal aims to encourage industrial development through diversification and regional value chain development, agricultural development and food security. And lastly, resolve challenges of multiple and overlapping memberships.
A promising future
The Tanzanian government on May 25, 2021, said it will ratify the AfCFTA between June and October this year.
The document will be taken to Parliament for ratification upon getting the endorsement of the cabinet, the director of government communications at the Ministry of Foreign Affairs and East African Cooperation, Mr Emmanuel Buhohela said. He further added that preparations have already been completed.
“We have taken a long time to reach this point with all the stakeholders including experts, business people being on board before heads of state-approved it and for now, we are waiting for the Parliament to finalize,” he said.
As a boost to the possibility of Tanzania finally getting on board the AfCTA train, Minister for Foreign Affairs and East African Cooperation Ambassador Liberata Mulamula said negotiations towards the ratification have reached a good stage, with interests in areas such as excise duty and discussions on the origin of goods reaching a good stage.
According to the minister, Tanzania has continued to participate in talks of joining the AfCTA through the EAC recommendations were already submitted.
