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Desiderio Consultants Ltd. is a think tank and a network of independent professional international development consultants established to promote and influence customs & trade-related policies in African nations to achieve trade facilitation reforms aimed at improving international and regional trade
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African States’ cautious approach to AfCFTA implementation could lead to longer time to realize its objectives

A recent article published on FDI Intelligence argues that the slow implementation of the AfCFTA by African countries, combined with persisting challenges like infrastructure gaps and access to finance, are stumbling blocks to the achievement of an African Single Market. On 30 May 2024, the AfCFTA agreement reached five years since its entry into force. Although trade officially commenced under the AfCFTA framework only in January 2021, it is being slowly implemented in phases, with a first important step represented by the AfCFTA Guided Trade Initiative (GTI), a pilot project aimed at testing the institutional and procedural framework within which the AfCFTA preferential trade transactions are conducted. Despite African countries have committed to remove tariffs for 90% of products, most of them have not incorporated the AfCFTA preferential tariff rates into their national tariff schedules, which is an essential condition for them to trade under the AfCFTA preferences. According to the International Trade Centre (ITC), a multilateral UN agency dedicated to support trade-led economic growth in developing countries, the full impact of the AfCFTA remains to be seen because African countries are proceeding cautiously with its implementation. The ultimate goal to be the world’s largest operating free trade area for a continent of 1.3 billion people is still far away, the article concludes.

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AfCFTA Guided Trade Initiative: an evaluation of early experiences

A publication made recently available by the Konrad-Adenauer-Stiftung Institute on its website analyses the results of the Guided Trade Initiative (GTI) based on empirical data gathered from the experiences of participating State Parties and companies. The study documents and provides information on how the GTI evolved, the practical challenges faced by various African States in its implementation and the successes achieved. The purpose is to drew lessons and recommend solutions aimed at facilitating countries that are currently joining the initiative.

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Single African Market creation faces the reality of huge volume of smuggling and illicit trade in the continent

Reading the data of the World Wildlife Crime Report 2024 of the United Nations Office on Drugs and Crimes (UNODC), one can understand why border controls in Africa are so tight and barriers to trade so high. Sub-Saharan Africa is the paradise of illicit trade, a trade that national States try to crush through strict and some time invasive controls at borders. Only wildlife materials account for 19 percent share of seizures worldwide, putting the continent on the top of the list of the regions where this kind of illicit trafficking is more common. But illicit trade in Africa, and especially in Sub-Saharan Africa, is not limited to wildlife. The UNODC report depicts a worrying scenario where illegal firearms, drugs, smuggled gold, meat, counterfeit medications and even cash trafficking are widespread, with organized criminal networks that thrive from profits derived from these businesses. Commenting the results of an operation on illegal trafficking that covered eight African countries, the report concludes that such convergence of criminal interests in different illicit trade sectors “is an area of increasing research and concern”.

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Snapshot of African transport Infrastructure shows more shadows than lights

The State of Africa’s Infrastructure Report 2024 published by the Africa Finance Corporation is the first edition of a series of annual studies on the situation of Africa’s infrastructure which aims at assessing progress in the continent’s infrastructure landscape, spotlighting critical gaps and offering new insights into the core sectors of power, transport, logistics, digital communications, and commodity-based value chains. In fact, investments in these areas are crucial for driving the structural transformation of African economies, promote sustainable growth, empower people across the continent, and finally put Africa on a path to overcome the vicious cycle of boom-bust economies affected by volatility in global commodity prices. Unfortunately, in this regard, results achieved are not so exciting.

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Uganda signs IGAD Protocol on Free Movement of Persons

Despite the Intergovernmental Authority on Development (IGAD) is one of the Regional Economic Communities (REC) in Africa that has made the less progress in establishing a Free Trade Area (FTA) as provided for article 6 of the Treaty of Abuja on the establishment of the African Economic Community (to date, such an FTA has not yet established among the IGAD eight member States), a notable achievement of this Community is the conclusion of the Protocol on Free Movement of Persons. According to its Article 38, the Protocol enters into force sixty days after a deposit of the fourth instrument of ratification or accession with the Executive Secretary of IGAD. So far, no country has ratified the Protocol, a process that could take time (the IGAD communique wrongly announces the ratification of the Protocol by Uganda).

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