In a bid to expedite the establishment of a robust African Continental Free Trade Area (AfCFTA), Comorian President Azali Assoumani, who currently holds the presidency of the African Union, has pledged his commitment to this ambitious initiative.
Despite its implementation in 2021, the AfCFTA has yet to fully realize its objectives, facing various challenges along the way. President Azali Assoumani has taken up the mantle to propel this critical trade zone forward, recognizing its potential to significantly benefit the African continent.
“This year, I have made it my mission to accelerate the construction of the African Continental Free Trade Area, which represents a great opportunity and will bring enormous benefits to Africa. Africa will also help countries outside the region,” affirmed President Azali Assoumani.
Central to President Azali Assoumani’s vision is the creation of favorable investment conditions within the AfCFTA framework. By fostering an environment conducive to investment, the aim is to encourage capital flow not only within local economies but also across borders, facilitating trade among countries like Madagascar and Tanzania.
President Azali Assoumani emphasized the importance of fostering healthy competition within the AfCFTA, underscoring its significance for the economic development of African nations.
However, numerous barriers impede intra-African trade, including high customs duties, administrative complexities, and a lack of tax harmonization. A 2014 African Union study revealed stark differentials in trade costs, illustrating the magnitude of these obstacles. For instance, shipping a vehicle from Japan to the Ivory Coast was found to cost three times less than shipping the same vehicle from the Ivory Coast to Ethiopia.
Addressing these impediments is crucial to realizing the full potential of the AfCFTA and unleashing the economic prosperity it promises for the continent. President Azali Assoumani’s commitment to accelerating its construction signifies a decisive step towards overcoming these challenges and fostering a more integrated and dynamic African economy.
As the African Union presidency, under President Azali Assoumani’s leadership, takes proactive strides towards realizing the AfCFTA’s vision, the continent stands poised to harness its vast economic potential and pave the way for a brighter future for generations to come.
