Business

Seven Countries To Commence AfCFTA Trading Trial

The African Continental Free Trade Area (AfCFTA) Secretariat has selected seven countries to start the trading pilot phase, announced on 26 July 2022. Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda and Tanzania will participate in the AfCFTA Initiative on Guided Trade trial. The pilot phase enables the selected countries to access certain markets at preferential rates for certain products. For example, Kenya will be able to trade milk, cheeses, textiles and horticulture products in west and central Africa, and Rwanda will be able to trade telephones, textiles, insecticides, pesticides, processed food and horticulture products. Under the AfCFTA, 90% of tariff offers in Category A (which covers goods liberalised in 2021) will be reduced in 10 years. Another 7% of products will be liberalised in 15 years, and the remaining 3% will be excluded from tax exemptions. The initiative aims to test and establish the trade, legal and environmental policy basis for intra‑African trade, and also identify companies, goods, customs procedures and logistic processes necessary for effective trade.