Expanding production, delivery of goods and services key under AfCFTA, Elsie Awadzi
Trade volumes under AfCFTA will be driven by large investments, Elsie Awadzi
Second Deputy Governor of the Bank of Ghana, Elsie Addo Awadzi, has said for there to be a successful free trade on the continent, there has to be a business law that will govern traders under the African Continental Free Trade Area (AfCFTA) agreement.
According to her, the business law regimes will promote investor confidence on the continent.
Speaking at the 2022 Money Summit held in Accra on Tuesday, April 26, Elsie Addo Awadzi noted that trade volumes under AfCFTA can be driven by large investments.
This, she said will help expand the production and processing capacity in key value chains.
"The African Continental Free Trade Area (AfCFTA) agreement creates for the first time a single African market for goods and services that transcends the limits of each of the continents 54 nations. With trading under the regime having commenced in January 2021, concrete steps need to be taken to expand production, delivery and payment channels to promote trade, regional trade, investments and growth, especially the export market beyond Africa," Elsie Addo Awadzi said.
She continued, "Trade volumes under AfCFTA will be driven by large investments that are needed to expand the production and processing capacity in key value chains, investments in key infrastructure to support the logistics in terms of the delivery of goods and services and payments large investments would be needed to promote more efficient financial markets."
"We also need robust business law regimes to promote investor confidence and we definitely need investments in human capital and technology," the Second Deputy Governor of the Bank of Ghana pointed out.
Trading on AfCFTA was originally tipped to start on July 1, 2020, but suffered a setback as a result of the coronavirus pandemic leading to the suspension of negotiations.
The intra-African trade pact witnessed 90 percent of all goods traded and is now the single largest market on the continent.
On January 1, 2021, 54 African countries that signed agreements and deposited their instruments of AfCFTA ratification enjoyed a tariff-free market.
AfCFTA has the largest number of member countries in any trade deal since the formation of the World Trade Organization in 1995.
