This is achieved, among other things, by reducing trade costs associated with trade facilitation as well as non-tariff policies and the cost of non-tariff barriers.
According to the Executive Director of the East African Business Council (EABC), Mr. John Bosco Kalisa, the implementation of policies of AfCFTA is sure to boost the economy of East Africa. The director said, “Continental Trade Protocol Planned to Raise Real Incomes for East Africans.”
For the East African Community (EAC) group, speedy implementation of the Continental Trade Agreement would be beneficial. Between 2021 and 2035, real incomes in Tanzania, the region’s second largest economy, are expected to rise by 10%.
Real incomes will increase by 11.8%, 3.8%, and 3.6% in Kenya, Uganda, and Rwanda, respectively. For three more EAC member states, Burundi, South Sudan, and the Democratic Republic of the Congo, no statistics are available (DRC). Last week Mr. Kalisa relayed this information.
A two-day workshop on the Trade-in Goods Protocol was organized by EABC as part of its GIZ funding programme. The implementation of the trade agreement, according to EABC’s Goodwill Ambassador for Logistics and Transport, Auni Bhaij, will promote African commerce in manufactured products.
Tanzania and Kenya’s intra-AfCFTA export shares will increase as their total world exports to the EAC are expected to increase by 28% and 43% respectively. Uganda and Rwanda are expected to have similar projections of 29% and 33% respectively.
According to EABC board director Mukai Kunyiha, the AfCFTA agreement is a clear demonstration of the African nation’s commitment to the new system. “They have shown a commitment to doing more trade and investments among themselves.” Mukai Kuniha said.
55 companies from Kenya attended the session in Nairobi to learn about the AfCFTA Trade in Goods Protocol and its key annexes. Rules of origin, tariff concession and non-tariff barriers are annexed with their implications for organizations in the EAC bloc.
The AfCFTA agreement aims to boost intra-African trade by gradually eliminating tariffs on more than 90 African goods.
A part of the goal is the elimination of non-tariff barriers and trade restrictions on products and services respectively. EAC merchandise exports to Africa were $7.9 billion, or 42% of total EAC merchandise exports to the world ($18.7 billion).