The Role of Trade Facilitation and Other Policy Strategies in the Successful Implementation of AfCFTA

Abstract

The purpose of this research paper is to discuss the importance of trade facilitation in the successful implementation of the African Continental Free Trade Area (AfCFTA). The AfCFTA brings a great potential to African economies by creating a single market with the elimination of tariffs and non-tariffs barriers (‘NTBs’); providing a push for the development of industrial capacities; encouraging the emergence of continental value chains; contributing to promoting intra-African trade; creating jobs; and ensuring economic transformation and prosperity in Africa. However, this potential requires a trade environment featured with simplified and harmonized trade border procedures for the smooth movement of goods among African countries. The importance of trade facilitation for the successful implementation of the AfCFTA emerges from the fact that it will work as a panacea for intra-Africa trade ills of increasing trade costs arising from NTBs; inefficient transportation; weak logistics infrastructure; cumbersome regulatory procedures; lengthy customs processes; and incoherent business documentation, thereby placing Africa at a competitively disadvantaged position. The paper concludes that trade facilitation has a crucial role in maximizing the benefits of the AfCFTA. Furthermore, it recommends that the existence of wide productive capacity and diversified manufactured products that can be exchanged regionally, continentally and internationally through a flexible trade facilitation environment, should be supported to galvanize the outcomes of the AfCFTA. AfCFTA, Trade Facilitation, Boosting Intra-African trade, Empowered Private Sector, Industrialization, Sustainable Economic Growth, TBT, SPS, NTB