Officials in charge of implementing the African Continental Free Trade Area (AfCFTA) propose the establishment of a dedicated office to serve as a bridge between the government and private sector, address bottlenecks, disseminate information, and facilitate exports under a Secretariat-style arrangement.<\/p>\n
Million Habte, coordinator of implementation at the AfCFTA Secretariat, told The Reporter that Ethiopia needs a clear and well-structured plan if the continental trade deal is to succeed.<\/p>\n
\u201cPlans should be crafted to show in detail how much a country stands to benefit from the agreement,\u201d he said. \u201cFor example, we need to calculate how many billions of USD Ethiopia can generate from agricultural, textile, and leather exports, and then outline both the opportunities and challenges, along with mechanisms for follow-up.\u201d<\/p>\n
As it stands, the Ministry of Trade and Regional Integration is responsible for coordinating AfCFTA implementation in Ethiopia. Million argued that while the Ministry plays an important role, an independent office will ensure systematic monitoring and provide alternative solutions for the private sector.<\/p>\n
He also stressed that Ethiopian embassies across Africa should prioritize trade diplomacy and regional integration to maximize opportunities.<\/p>\n
An economist keeping a close eye on AfCFTA, who prefers to remain anonymous, disagrees with the idea of creating a new organ.<\/p>\n
He suggested that Ethiopia should instead study best practices from other countries. In Ghana, for example, AfCFTA implementation is coordinated under the President\u2019s office, which allows high-level decisions to be enforced without delay.<\/p>\n
\u201cIn Ethiopia\u2019s case, the Ministry can continue to serve as a secretariat,\u201d the economist said. \u201cBut effective coordination would be much easier if implementation were overseen by the Prime Minister\u2019s office or another top executive body. The Ministry lacks the authority to direct institutions such as the Customs Commission and the National Bank of Ethiopia, which are crucial for tariff reductions, tax administration, and financial transactions.\u201d<\/p>\n
The expert warns that unless the Ministry is legally empowered to enforce compliance, it cannot manage implementation effectively.<\/p>\n
He argues the Ministry should either be granted the legal mandate to command other implementing institutions or the responsibility should be shifted to the Prime Minister\u2019s office. Otherwise, he worries, any orders it issues could go ignored, undermining progress.<\/p>\n
Despite being operational, AfCFTA\u2019s rollout has been slow.<\/p>\n
Million admitted that some protocols, such as free movement of people and the right to work, have been delayed because many member states have not yet ratified them. Nevertheless, there has been some progress.<\/p>\n
Around 6,000 certificates of origin (CoO)\u2014documents confirming that goods meet AfCFTA rules of origin\u2014have been issued.<\/p>\n
Egypt leads with nearly 3,000 certificates, while Tanzania, Ghana, and Nigeria are also active participants. Million expressed optimism that Ethiopia would soon join the list once it fulfills the necessary requirements.<\/p>\n
He added that seven protocols covering goods and services, intellectual property, digital trade, and competition have already been implemented.<\/p>\n
\u201cUltimately, success will be measured by the volume of trade conducted, the benefits to the private sector, the readiness of logistics and customs systems, and the effectiveness of tax and duty incentives,\u201d he said.<\/p>\n
Ethiopia, he added, could benefit not only from exports to Europe and Asia but also from new opportunities within Africa, including transactions settled in local currency.<\/p>\n
However, the delays mean any potential benefits are still a long way away.<\/p>\n
Both Million and the economist pointed to external shocks like the COVID-19 as major factors behind the delays, disrupting decision-making, trade flows, and growth across Africa.<\/p>\n
IMF data shows that the continent\u2019s economy contracted for the first time in over two decades in 2020, shrinking by 1.9 percent, while fiscal deficits nearly doubled from 4.7 percent of GDP in 2019 to 8.7 percent. Africa\u2019s share of global trade remains under three percent, with intra-African trade still limited.<\/p>\n
A report by the UN Economic Commission for Africa (UNECA) found that African countries continue to trade more with the rest of the world than with each other.<\/p>\n
The economist also highlighted global trade tensions as an obstacle to AfCFTA\u2019s smooth rollout.<\/p>\n
\u201cSudden tariffs, retaliatory measures, and the instability caused by sanctions and geopolitical disputes have all undermined the global trading system,\u201d he said.<\/p>\n
He pointed to the weakened role of the World Trade Organization (WTO) amid growing disputes between major powers. In his view, uncertainty in global trade has discouraged African governments from fully committing to continental integration.<\/p>\n
The economist further argued that the pandemic introduced a new economic principle of \u201cresilience,\u201d which prioritizes self-sufficiency in key industries.<\/p>\n
Africa\u2019s difficulty in accessing pharmaceuticals during COVID-19, compared to other regions with stronger local manufacturing, has pushed many countries to pursue domestic production of essential goods. While this move reduces dependency, he warned it may also weaken commitment to regional integration.<\/p>\n
\u201cAs long as countries commit more to resilience, the momentum for regional integration could decrease,\u201d the economist predicts.<\/p>\n
Million, however, insists that AfCFTA remains a long-term opportunity for Ethiopia and the continent. He emphasized that governments\u2019 ability to resolve trade finance shortage challenges and address problems faced by exporters in destination countries would be key to unlocking the benefits.<\/p>\n
He also argued that African nations should take advantage of nearby markets, rather than focusing solely on Europe and Asia.<\/p>\n
\u201cThere are exportable items in our backyard, even those that can be traded in local currencies,\u201d he said.<\/p>\n
International trade uncertainty adds to the challenge.<\/p>\n
The economist noted that sudden tariffs, sanctions, and rival trade agreements have destabilized the system, making it difficult for countries to commit fully to AfCFTA.<\/p>\n
He also blamed global trade politics as one of the biggest barriers to the delayed implementation of the AfCFTA.<\/p>\n
\u201cEven trade deals are uncertain on whether regional trade agreements or bilateral trade agreements are more effective,\u201d said the expert. \u201cThe way forward is to remain cautious and closely monitor global trends.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Officials in charge of implementing the African Continental Free Trade Area (AfCFTA) propose the establishment of a dedicated office to serve as a bridge between the government and private sector, address bottlenecks, disseminate information, and facilitate exports under a Secretariat-style arrangement. Million Habte, coordinator of implementation at the AfCFTA Secretariat, told The Reporter that Ethiopia […]<\/p>\n","protected":false},"author":72,"featured_media":46598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"editor_plus_copied_stylings":"{}","ngg_post_thumbnail":0,"footnotes":""},"categories":[1960],"tags":[],"class_list":{"0":"post-46597","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-latest-news-in-ethiopia"},"acf":[],"_links":{"self":[{"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/posts\/46597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/users\/72"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/comments?post=46597"}],"version-history":[{"count":0,"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/posts\/46597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/media\/46598"}],"wp:attachment":[{"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/media?parent=46597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/categories?post=46597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thereporterethiopia.com\/wp-json\/wp\/v2\/tags?post=46597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}