Manufacturers urge government to address gaps in AfCFTA - Latest Updates

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Wednesday, January 27, 2021

Manufacturers urge government to address gaps in AfCFTA

 
Kenya Association of Manufacturers (KAM)has called on the government and relevant agencies to address gaps in the Africa Continental Free Trade Area (AfCFTA). 

KAM in partnership with National Trade Facilitation Agencies hosted the webinar in which the status of implementation of AfCFTA was discussed. 

Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS) and Kenya Trade Agency (KenTrade) were also represented by leaders in attendance. 

KAM Chairperson Mucai Kunyiha highlighted the challenges and opportunities in AfCFTA. 
 
“AfCFTA shall open up borders, both in the continent and globally. However, the level of trade amongst African countries remains low. Whereas AfCFTA enables intra-Africa trade, we still source for raw materials, intermediate goods and finished products from more developed markets, including China, Europe and the United States," Kunyiha stated. 

"We need to look at the opportunities for trade amongst ourselves and take advantage of them in order to build our competitiveness and productivity,” he added.

The KAM Chairperson pointed out that there is an urgent need for the government and relevant agencies develop and implement measures to facilitate trade under AfCFTA. 

“The reality remains that a lot of work needs to be done to make the trade pact operational. It is critical that government and relevant agencies sensitize customs officials on the agreement’s tariffs and procedures, harmonize standards to enable trade across the continent, conclude negotiations for key tariff lines and make information available to all stakeholders to enable them to make investment decisions,” Kunyiha stated. 

According to KEBS Director for Standards Development and Trade Ms Esther Ngari, the facilitation of local, regional and international trade requires standards development. 

“The changing global trade flows have enhanced the role of standards development by encouraging the integration of national economies, and trading systems into a fairer global trade regime,” she remarked. 

KenTrade Director for Trade Facilitation, Ms Rose Ronoh noted that initiatives toward enabling the efficient processing of imports and exports are currently being developed by the agency. 

Ms Ronoh said, “The single window system seeks to eliminate challenges related to the processing of import and export cargo documentation. In addition, the implementation of Marine Cargo Insurance (MCI) module, integration of the new Customs Management, automation of the Duty Remission Scheme, among others, shall facilitate trade under the agreement.” 

According to KRA Assistant Manager for Trade Facilitation Division Maureen Wanginda, regional trade faces some challenges and the authority has a significant role to play in the facilitation of trade.

She explained, “Our role entails the submission of focal points as provided in the AfCFTA rules of origins, submission of authorized signatories to the AU signatories, printing and publishing the trade documents, adjustments of Customs Procedures Management Systems and training and capacity building for economic operators of the AfCFTA.” 

As a flagship project of the African Union’s Agenda 2063, AfCFTA provides the framework  for attaining inclusive and sustainable development across the continent over the next 50 years.

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