Abuja, Nigeria – August 2, 2024 – H.E. Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA), delivered a keynote address at the 2024 African Caucus Meeting in Abuja, Nigeria, where discussions centered on “Trade Facilitation and Regional Integration in Africa.”
In his address, H.E. Mene emphasized the critical role of trade facilitation in achieving the ambitious goals of the AfCFTA, including fostering industrial development, enhancing regional value chains, promoting agricultural development and food security, and boosting intra-regional trade. He highlighted that effective trade facilitation involves harmonizing and simplifying both technical and legal procedures for the movement of goods across the continent, which is essential for reducing transport and trade costs and enhancing the economic welfare of African populations.
The meeting resulted in several important outcomes. One of the key agreements was the acceleration of the implementation of the corridor strategy, with specific focus on operationalizing efficient trade corridors such as the Abidjan-Lagos Corridor. This initiative is expected to streamline the movement of goods across multiple trading countries on the continent, significantly contributing to economic integration and sustainable development.
Another significant outcome was the reaffirmation of the importance of the Pan-African Payments and Settlement System (PAPSS) in facilitating cross-border transactions and reducing reliance on third-party currencies. The African Caucus endorsed the expansion of PAPSS to ensure broader access across the continent, particularly for small and medium-sized enterprises (SMEs), which are critical to driving economic growth under the AfCFTA.
Additionally, the meeting underscored the success of the AfCFTA’s Non-Tariff Barrier (NTB) mechanism, which allows businesses to report and monitor barriers to trade. The Caucus agreed on the need to further develop this mechanism to ensure more widespread use, particularly by micro, small, and medium-sized enterprises (MSMEs) across Africa.
The discussions also led to a commitment to enhance collaboration in trade finance, infrastructure development, policy harmonization, and capacity building. These efforts are seen as vital to improving trade efficiency, reducing costs, and boosting production and competitiveness across the continent.
H.E. Mene concluded his remarks by emphasizing the importance of continued cooperation among African nations to realize the full potential of the AfCFTA. The outcomes of the African Caucus meeting are expected to play a significant role in advancing trade facilitation and regional integration, driving transformational development across Africa.
