With the potential to create the world’s largest free trade area, AfCFTA represents a unique opportunity for African nations to boost their economies and improve the livelihood of their citizens
By Boris Esono Nwenfor & Sonita Ngunyi Nwohtazie
YAOUNDE, January 25, 2024 – The African Continental Free Trade Area, AfCFTA, promises to be a game changer for Cameroon, with its single market of over 1.3 billion people and an estimated GDP of $2.6 trillion. Given the goals set by the government in its new National Development Strategy 2020-2030 (NDS30), there is a need to put in place a solid mechanism to ensure that the application of AfCFTA regulations.
With several challenges on the implantation of the AfCFTA, the Nkafu Policy Institute, a think tank of the Denis and Lenora Foretia Foundation organized a stakeholder meeting on Thursday, January 25, at the Muna Foundation in Yaounde under the theme: “Paving the Way for a Successful Implementation of the AfCFTA.”
Dr Bin Joachim Meh, Policy Analyst at the Nkafu Policy Institute said: “The session was organized to discuss issues on the AfCFTA and its implementation. Cameroon has ratified the terms of the AfCFTA which means she is in accord with its implementation. There needs to be an effective implementation of the AfCFTA. As of now, Cameroon has developed a strategic plan and has started trading within the free trade area. But, there is still much that needs to be done. We have discussed with stakeholders and conclude that there is a need for sensitization, where the private sector is being sensitized on the AfCFTA.”
AfCFTA aims to boost intra-African trade, foster economic integration and promote sustainable development across the continent. With the potential to create the world’s largest free trade area, the AfCFTA also represents a unique opportunity for African nations to boost their economies and improve the livelihood of their citizens.
“Cameroon technically is prepared because it is one of the founding countries of the agreement. Cameroon is ready and we have been trading. Trade has been effective and we are exporting and importing under the African Continental Free Trade Area,” said Cham Etienne Bama, Coordinator of AfCFTA Guided Trade Initiative for Cameroon.”
“The key priority is to identify our strength through sectors that we have a comparative advantage that we can talk with other stakeholders that emphasis be made on this industry, where we can be able to balance our trade with other countries.”
The fact that many countries belong to more than one Regional Economic Committee, REC, which was created to act as a catalyst for the successful implementation of the AfCFTA, is today a major obstacle to its implementation. Factors such as rules of origin, the application of the common external tariff, and the duplication and sometimes competition from certain activities also pose challenges to the implementation of the AfCFTA.
Victor Tibue said: “COVID came in and halted a lot of things and other technical aspects that came in with barriers at the level of policy formulation and the different legislatures. We are working to advance on that and to find a common ground that can bring all the partners on a common footing.”
“Cameroon stands to gain a lot from the AfCFTA as we are working here on the value chain. We are not just trading in goods, but we are trading in image, culture and so many things.”
The AfCFTA offers the opportunity to create the world’s largest free trade area with the potential to unite over 1.2 billion people in an economic bloc of over 2.5 trillion dollars and usher in a new era of development. It has the potential to generate many benefits through trade expansion, structural transformation, productive employment and poverty reduction.
The fundamental mission of the AfCFTA is to stimulate trade between African countries by eliminating or reducing tariff and non-tariff barriers (elimination of 90% of customs duties on goods and services within a maximum of 15 years).
Dr Bin Meh added: “Cameroon is a key actor within the 54 countries that have ratified the instruments of AfCFTA. Cameroon is up to the task when it comes to the implementation of the Agreement. As of now, we have 3 certificates of origin issued to some companies in the country. Cameroon is fit but what we need now is effective implementation taking into consideration the national development strategy.”
“The export power of Cameroon as of now is timid compared to import. But a lot of work is being done to correct this imbalance. We have exported cosmetic products and tea. These are products that fall under the first list of 96 products that we earmarked for the guided trade initiative,” Cham Etienne Bama said.
“We are looking forward to countries like Nigeria, and South Africa who are joining the AfCFTA. We are now looking to move existing trade into the preferential trade regime. So, those countries that are importing from Cameroon can feel the benefit of the AfCFTA where custom duties are already being reduced.”
