Business
Africa on track to becoming world’s manufacturing hub
According to Kaberuka, the recently launched Tripartite Free Trade Area by Africa’s three regional economic blocs, was a “major turning point” in Africa’s quest to boost intra-African trade.
“This region coming together has already made huge progress on the issue of tariff reduction and tariff harmonization,” he said.
The Tripartite Free Trade Area encompassing 26 countries of the Common Market for East and Southern Africa (COMESA), East African Community (EAC) and the Southern African Development Community (SADC) was launched on June 10 with the aim of boosting intra-African trade.
The 26 countries, with a combined population of 625 million people, and Gross Domestic Product (GDP) of US$1.3 trillion, present close to 60 percent of the African Union’s GDP and population.
Kaberuka said while intra-Africa trade was generally put at 12 percent and true for the whole of Africa, the actual levels of intra-trade within the Tripartite Free Trade Area was about 20 percent.
But for the Tripartite Free Trade Area to become successful, Kaberuka said all non-tariff barriers must be removed while free movement of business people and bona fide travelers must be ensured.
“So for the free trade zone to become free, tariff agreement is important,” he said.
The AfDB president said the Tripartite Free Trade Area presented an immense investment opportunity for China to boost industrial cooperation with Africa.
