AfCFTA implementation :$ 10 billion adjustment fund to cushion countries against tariff revenue losses in the offing

Afreximbank and the African Free Trade Continental Area (AfCFTA) Secretariat are in the final stages of negotiating a 10 billion dollar adjustment fund, aimed at cushioning countries that likely to suffer short-term tariff revenue losses as a result of the implementation of the AfCFTA, MrWamkele Mene, Secretary-General of the AfCFTA Secretariat, has disclosed.

Speaking at a press briefing to draw the curtains on the second Intra-African Trade Fair( IATA) 2021 held in Durban, South Africa, he said, “it is going to be for a country that says my textiles and clothing sector is suffering, the fund will then intervene and provide direct intervention support to the sector either for retraining of workers or for recapitalisation or for procuring machinery for goods or to increase competitiveness that’s what the fund will be for, as I said we are in the last stages of negotiating a joint venture for this AfCFTA adjustment fund, ” he said.

He said, “Ultimately, what we should aim for is that tariffs or duties should not be a tool for revenue generation but industrial development tool but the reality is that we are a long way from that and that’s why the AfCFTA exists to make sure we move away from that reliance.”

The event recorded 11,828 attendees recorded against a target of 10,000

Also, 1,161 exhibitors across all verticals, took part in the fair against a target of 1,100

In addition, 59 countries attended and exhibited at IATF 2021, including 46 African states.

Mr. Mene complimented Afreximbank’s efforts in empowering and supporting free trade in the continent, saying the Bank had in the last two years pumped in close to US$25 Billion towards financing trade engagements within the continent.

“Not a single country in Africa will be able to compete globally alone, hence African countries must just integrate the market, something that has evaded Africa from 1963 when our forefathers hatched African Unity,”  Mr. Mene said.

 Chief Olusegun Obasanjo, Chairman of the IATF 2021 Advisory Council and former President of the Federal Republic of Nigeria, expressed his gratitude to the KwaZulu-Natal Province for successfully hosting IATF 2021, and fully bringing the vision of the AfCFTA to life in a tangible and measurable way.

“It is no mean feat to have secured seven sitting presidents for the opening ceremony who stayed for hours during the entire programme,” said Chief Obasanjo. “Thank you immensely for all you have done to make sure this event takes place,” he added, promising to meet everyone in Abidjan, Côte d’Ivoire, in 2023.

Prof. Benedict Oramah, President of Afreximbank, indicated that the road to Abidjan would commence immediately, with the launch of the IATF 2023 website registration portal, which is now live.

“We will overcome the challenges we experienced with IATF 2021 and leverage the progress of the AfCFTA over the coming two years to make IATF 2023 an even more resounding success,” he said.

Responding to a question about the free movement of people across the continent, Ambassador Albert Muchanga, AU Commissioner for Economic Development, Trade, Industry, and Mining, told the press conference that the work of the AfCFTA would be further strengthened by the ratification of the African Union protocol on free movement of persons in Africa, which still needed eleven signatories in order to be passed. “Once the protocol is ratified, there will then be visa-free movement of people, and ultimately, the mainstream introduction of the African passport,” he said.

Speaking on behalf of the Premier of KwaZulu-Natal, the MEC for Economic Development, Tourism and Environmental Affairs, Ravi Pillay, underscored the need for the prioritisation of Africa’s industrialisation process.

 “It is important that we trade in products we have made – how can we be proud to trade in goods that were made elsewhere?” he said.

Mrs. Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, explaining that the standards that had been set for this second edition had been based upon the learnings from IATF 2018 in Cairo, Egypt. 

Mrs. Awani announced that the business deals signed and concluded as of 21 November 2021 amounted to US$36 billion, exceeding the US$32 billion mark set at IATF 2018. She explained that additional deals were still going on and that some of the deals already closed were still being compiled.

BY DAVID ADADEVOH

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