Monday, January 14,
2019 / 4:20 PM / Nifemi Taiyese for WebTV / Header Image Credit: WebTV
The Africa Continental Free Trade Agreement (AfCFTA), if well implemented, has the potential of Industrializing the continent.
Mr. Kunle Elebute, Senior Partner KPMG Nigeria and Chairman of KPMG Africa, made the statement at the closing ceremony of the 5th Africa Academy of Management Conference in Lagos.
Speaking on the topic "The Africa Continental Free Trade Agreement," Elebute believed the Trade Agreement provided an opportunity for Africa to compete at the global level as a critical market with over 1.2bn consumers.
He described the AFCFTA as a platform for removing the trade barriers and tariff structures that inhibit the growth of Intra-African trade.
The KPMG Africa Chairman listed the following as features of the AFCFTA;
He noted that the AfCFTA treaty negotiations started in 2013, noting that it took three years to agree and another three years for most countries to sign.
On the impact of the continental free trade agreement, Elebute listed the following areas of advantage;
Elebute informed the delegates that the AfCFTA would leverage on the sub-regional economic clusters in Africa such as the South Africa Development Community (SADEC), East African Community (EAC), and Economic Community for West African States, ECOWAS to deepen trade and growth in Africa.
For the benefits he highlighted the following as the key areas of value that Africa should derive from the AfCFTA, which include;
"AfCFTA will benefit prepared countries, countries that are unprepared should do what is right and get prepared, one of the key things they may have to do is ensure they make changes to their internal regulatory framework to align with AfCFTA principles," Elebute said.
He encouraged businesses to take advantage of this opportunity that provides a bigger market with new opportunities, partnerships and distribution networks.