IOE has just launched a “Report on IOE digital conference on fostering intratrade in Africa and its impact on employment” that complements the article published in February 2021 on “The consequences of the African Continental Free Trade Agreement on jobs and investments”.

The report first explains the content of the African Continental Free Trade Area (AfCFTA) and how it will be operationalized. For this latter point, it requires 5 instruments:

1. The rules of origin: A regime governing the conditions under which a product or service can be traded duty free across the region.
2. The online portal for tariff offers: It has been agreed that there should be 90% tariff liberalisation over a 10-year period with a 5-year transition, there will be an additional 7 % for “sensitive products" that must be liberalized.
3. Notifications, monitoring and elimination of non-tariff barriers
4. The Pan-African digital payment and settlement system: To facilitate payments on time and in full, by ensuring that payments are made in local currency and at the end of the year there’ll be net settlements in foreign exchange. With the certainty of payments, there will be confidence in the system.
5. The African Trade Observatory: A trade information portal to address hindrances to trade in Africa due to lack of information about opportunities, trade statistics as well as information about exporters and importers in countries.

In addition to these five key issues, the report outlines how “African economies still need to address a large number of operational challenges (i.e infrastructure, border controls, corruption, trade liberalization for sensitive products, trade in conflict zones, etc.) to take advantage in the short and long term of this new free trade area”.

Concerning the impact on employment, “the AfCFTA has the potential to redress some of the key challenges the continent is facing, provided that adequate investment is allocated to maximise Africa’s biggest resource – its human capital. The opening up of the free trade area offers youth and women greater opportunity to be principal players in regional value chains. With the digital economy and e-commerce growing at a rapid rate, the youth and women will benefit immensely by leveraging on Africa’s digital infrastructure to maximize existing opportunities through AfCFTA”.

The final part of the report focuses on the role of the private sector and of employers’ and business membership organisations (EBMOs) in fostering intratrade in Africa. In particular, the expertise and access to negotiation with national policymakers make of EBMOs the partner needed to advocate for certain interests. “In addition, EBMOs are also able to bring in actual experience and expertise from businesses not only operating locally but also regionally, thereby highlighting the barriers of trade and investment in doing business. In addition to supporting national policymaking, EBMOs can support their members by providing them with up-to-date information on intra-trade in Africa so that businesses are well informed about doing business”.