The Pro-Vice Chancellor of Ghana Telecom University, Professor Robert Hinson, has said that building the right customer experience will be critical in ensuring the sustainability of the African Continental Free Trade Agreement (AfCFTA).
According to him, little attention has been devoted to proper marketing and the right customer experience culture in the bid to promote the Intra-African trade.
He made this call on Joy Business Social, a weekly podcast show which discusses pertinent issues on the business landscape.
“I hear about AfCFTA, about expansions in the African market. So my question is, what is the role of marketing and service excellence in AfCFTA?” he quizzed.
According to him, failure to build a resilient customer experience routine could lead to the collapse of many Small and Medium Scale Enterprises, thus affecting the AfCFTA agenda.
“If you have no standard operating procedures, no service level agreements, no corporate values, you will not be competitive. Again, if you do not build service routines in your SMEs, you are doomed to fail”.
He furthered that building the right structures to sustain a cordial relationship with customers and keeping them happy will be key in guarantying the growth of businesses and facilitating smooth intra-African trade.
“This is because if you can’t keep your customers happy, they will cease to spend with you. This will make you less profitable and eventually lead to the collapse of the business”, he added.
The African Continental Free Trade Area (AfCFTA) is a trade initiative designed to create a single market for goods, and services, facilitated by the movement of persons in order to deepen the economic integration of the African continent and in accordance with the Pan-African Vision of An integrated, prosperous and peaceful Africa.
Challenging Heights, a non-governmental organisation (NGO), has petitioned the Africa Continental Free Trade Area (AfCFTA) over human trafficking and modern day slavery in the supply chains of AfCFTA participating companies.
This petition was submitted to the AfCFTA Secretary General through the AfCFTA Secretariat, urging the organisation to address human rights issues, especially those bordering on human trafficking, modern slavery, forced labour, and other human rights abuses throughout company supply and value chains.
Challenging Heights says this is to avoid the risks of international product sanctions, as well as to enhance international consumer and investment confidence in the participating companies within the AfCFTA agreement.
The Chief Executive Officer of the organisation, James Kofi Annan, says that currently, there are an estimated 49.6 million people in modern slavery globally, generating over 150 billion US dollars annually.
CEO of Challenging Heights, James Kofi Annan
Modern slavery, he implies, is prevalent in Africa, with over 27.6 million people affected (in Africa alone) on any given day, and more than 3.3 million of those affected being children (ILO, 2022).
Background
The Universal Declaration of Human Rights (UN, 1948) sought to guarantee the rights of all people in the world. Since the declaration was made, the United Nations has established several protocols and funds to address issues of human rights violations globally.
About 12 years ago, the United Nations published the United Nations Guiding Principles on Business and Human Rights (UN, 2011). The Guiding Principles contain three fundamental pillars: protect, respect, and remedy, detailing concrete and actionable steps for governments and companies to meet their obligations to protect human rights in company operations, and to provide remedies if human rights violations do occur.
Globally, a lot of efforts have been made to address the issue of human trafficking and modern slavery. The 2030 Agenda for Sustainable Development, Goal 8.7, sets out to “take immediate and effective measures to eradicate forced labor, end modern slavery, and human trafficking, and secure the prohibition and elimination of the worst forms of child labor, including the recruitment and use of child soldiers, and by 2025 end child labor in all its forms.”
Various countries and states have passed various laws and regulations that address human trafficking and modern slavery, from victim protection to addressing supply chain issues related to modern slavery. Forced labor has been made a crime in the United States of America. Forced labor has been defined in the United States Code, Section 1589, as “knowingly providing or obtaining the labor or services of a person using force, threats of force, physical restraint, or fraud.” This law mandates the US State Department of Labor, to blacklist products that are tainted with forced labor.
The California Transparency in Supply Chains Act (2012) for instance requires all retailers and manufacturers doing business in California with a profit of $100 million or more to inform the general public about human trafficking and modern slavery risks in their supply chains. This law makes it possible for consumers to learn about companies’ efforts to address human trafficking and modern slavery issues in their supply chains and gives consumers the chance to be more responsible in their buying decisions.
The California modern slavery law is similar to that of the UK modern slavery Act (2015), which also makes it mandatory for companies to publish efforts they are making to address modern slavery and human trafficking. The Australian Modern Slavery Act (2018) puts the responsibility on Australian companies, both home and abroad, to address issues within their supply chains or face severe sanctions. Currently, the European Union is discussing new legislation aimed at comprehensively addressing human rights due diligence issues, including human trafficking and modern slavery, in business supply chains.
All these superpower country laws have several implications for businesses and products from Africa, as the requirements of the laws include first-, second-, third-, and, in some cases, fourth-tier due diligence requirements.
Human trafficking and modern slavery
CEO of Challenging Heights, James Kofi Annan, says many members of the African Union, and AfCFTA for that matter, have established human trafficking legislations that address human trafficking from victims’ perspectives. However, there is a wide gap in the human trafficking and modern slavery laws established in African countries. There is, as yet, no law in Africa that makes it mandatory for African businesses to address human trafficking and modern-day slavery issues in their supply chains. Also, he indicates there are no comprehensive arrangements within the business community to identify and address human trafficking and modern-day slavery issues within business value chains.
Obviously, today’s business environment has a complicated supply chain mechanism that goes beyond one country, or one continent. Businesses done in Ghana, Nigeria, or any other part of Africa have their value chains deeply connected to those in Europe, Asia, America, Australia, and so on, due to factors such as raw material sourcing, financing arrangements, investments, equipment requirements, and so on. In effect, due diligence laws passed in America, Europe, Asia, or Australia, inevitably affect businesses in Africa due to the complexities of human resources, supply chains, and the reach of the laws at all levels.
There have been several global private and intergovernmental initiatives aimed at helping the private sector address issues of modern slavery, both in their supply chains, and as part of doing responsible business. The Bali Process is an international governmental initiative which was established over two decades ago, that brought 49 countries of the world together to foster cooperation towards addressing modern slavery through policy and regulatory reforms, and corporate social responsibility. The Khartoum Process, set up ten years ago, is an intergovernmental initiative aimed at addressing the flow of modern slavery from Africa to the Gulf countries. The UN backed New York based Global Financial Sector Commission, which Challenging Heights was deeply involved, produced a report that brought the global financial sector together, and produced a Blueprint, which allows the financial sector to help address human trafficking and modern slavery comprehensively. Their work resulted in the establishment of the Finance Against Slavery and Trafficking Initiative (FAST Initiative), of which Challenging Heights is a founding board member.
James Kofi Annan stated: “Therefore, AfCFTA has an opportunity to leverage existing national and international regulations and initiatives to establish initiatives that will provide participating companies with the obligations to address human trafficking and modern slavery in their supply chains.” “As AfCFTA is young, such a concurrent initiative will provide the business cultural environment that will assist participating products with a clean image to enter markets where they would have faced blacklisting or weakened consumer confidence.”
He further noted that investors all over the world are investing in responsible businesses. The Principles of Responsible Investment (PRI) group, with 7,000 member investors and corporate signatories representing businesses in 135 countries, is the world’s largest voluntary corporate sustainability initiative whose members underscores what are the issues engaging investors’ attention in the global business environment – human rights, and the environment.
“Such international initiatives have resulted in international banks being forced to lend to responsible and diligent companies.” Consumers are looking into responsible companies that are addressing issues of due diligence before making consumption decisions. “The need for AfCFTA to help members address supply chain issues cannot, therefore, be overemphasized,” he stated.
Challenging Heights is by the petition requesting that AfCFTA establish an initiative that obliges its members to approve corporate policies that address supply chain issues as well as its own internal human rights issues. The organization is also requesting that AfCFTA initiate conversations with the governments of member countries to pass punitive company/product due diligence legislation.
Challenging Heights finally requests AfCFTA set up a unit to monitor compliance and for the unit to work with member countries to facilitate the passing of due diligence legislation.
Challenging Heights, with several years of national and international advocacy experience and years of being involved with most of the said international initiatives, is willing and able to support AfCFTA in these directions.
The NGO, officially established in 2005, works for the protection of human rights, especially the protection of victims of forced labor, human trafficking, and modern slavery. Since its inception, the organization has rescued over 1,800 children from human trafficking and modern slavery, supported over 4,000 women and over 4,000 youth, and been part of several successful advocacy efforts, both in Ghana and abroad.
A former Member of Parliament who represented the people of Shama on the ticket of the New Patriotic Party (Dr Ato Panford) has died.
According to reports he died on Sunday, February 12, 2023, in the morning. The cause of his death is yet to be disclosed, however, reports suggest he died at the GPHA Hospital in Takoradi.
Dr Panford was the MP for Shama in the Seventh Parliament of the Fourth Republic.
Until his demise, he was the senior Advisor of Enterprise Audit – AfCFTA National Coordinating Office.
Tributes have already started pouring in.
For instance, the former Minister for Trade and Industry, Alan Kyerematen has commiserated with his family and the party as a whole.
In a Facebook post, he said “I have received with sadness the passing of my very good friend and former Member of Parliament for Shama Constituency, Dr Ato Panford.
“I spoke to the wife, son and a few family members a while ago.
“Ato was an astute expert in International Trade and Commerce and distinguished himself as an Industrialist with over 25 years in the Private and Public sectors.”
In order to strengthen the continent’s ability to withstand future shocks, President Nana Addo Dankwa Akufo-Addo has urged African nations to take inter-trade seriously.
Closing the three-day Africa Prosperity Dialogues, President Akufo-Addo said the decision by some 44 countries to sign up for the African Continental Free Trade Area (AfCFTA) is a clear indication that the continent is ready to trade among itself.
Mr Akufo-Addo promised that he will engage the remaining 10 African States to ensure the full participation of all African States.
“It is encouraging to note that as of November 2022, 44 members states have ratified the African Continental Free Trade Area (AFCTA), this is strong evidence of the growing political will and commitment of the leadership of the continent to achieve market integration in Africa, and it’s our duty to engage to ensure the full participation of all members states.”
Meanwhile, Vice president Dr Mahamudu Bawumia has disclosed that Africa will need between US$130 billion and US$170 billion annually to propel a sustainable growth of 5 per cent in order to bridge the infrastructural shortfalls of the continent.
Addressing a high-level conference in Accra of African Ministers of State, diplomats, policymakers, and business executives, who are discussing ways of fast-tracking the implementation of the AfCFTA, Dr Bawumia said even though the AfCFTA has set the stage for the transformation of Africa, its full prospects can only be realised through decisive steps by key African stakeholders, and a focus on some key broad areas he proposed.
Mr. Bawumia intimated that the continent should make conscious efforts to address the infrastructural deficit needed to facilitate the implementation of the AfCFTA which will likely come at a cost not less than US$130 billion a year.
“Africa needs between US$130 billion and US$ 170 billion annually to bridge its infrastructure gap and generate sustainable growth at 5% per annum or more. This presents immense opportunities for the private sector investment,” he noted.
Gabby Asare Otchere-Darko, the founder and chairman of the Africa Prosperity Network, has said the African Continental Free Trade Area (AfCFTA) promises economic integration hence its success will be the collective success of the African continent.
Otchere-Darko said Africans must put in every effort to achieve the goals of the AfCFTA.
Speaking at the opening of the maiden Africa Prosperity Dialogues at the Safari Valley Resort in Adukrom in the Eastern Region, he said, “Its [AfCFTA’s] success is our success. If it works, it will significantly boost trade and investments, provide jobs and increase prosperity across the continent, like never before.”
“But, in order for it to work and work for us, the workings of the AfCFTA must be seen and felt from this onset to be for the people of Africa. For our collective ownership and shared benefit, it must be owned by businesses in Africa,” Otchere-Darko said.
He said, “the aggregate value of enterprises and industries across Africa must be networked, coordinated and impactfully leveraged, adding that “that is why, we of the Africa Prosperity Network, are pleased to have created this dedicated platform, the Africa Prosperity Dialogues, as an annual retreat where business leaders, thought leaders, trade associations, development organisations, young and women entrepreneurs, etc., will sit together, think together, plan together, and work together, with urgency, to intensify the efforts towards achieving the goals of AfCFTA.”
Meanwhile, the executive director of the Africa Prosperity Network (APN), Dr Eugene Owusu, welcoming the participants said, “The game-changer [in the development of Africa] will be the speed and scope of AfCFTA. The next two days must not be a celebration but a call to action.”
“It is truly heartwarming to see this assembly of eminent business and policy leaders from across the continent come together around the AfCFTA and to do so with such enthusiasm and vitality.
He said, “The Africa Prosperity Dialogues series have been established as a convening platform for Africa political and business leaders to set and push initiatives to transform Africa with the overarching objectives of achieving prosperity across the continent through in particular enhanced economic cooperation, deeper trade and integration and accelerating impact investment.”
“There is no doubt that this maiden Africa Prosperity Dialogue is taking place against the backdrop of immersed challenges that confront our continent but also exciting opportunities that our continent has to transform itself,” Dr Owusu added.
The maiden series of the Africa Prosperity Dialogues kicked off on Thursday (26 January) and will end on Saturday (28 January). The serial event, also dubbed the Kwahu Summit, involves captains of industry, entrepreneurs, economists, bankers and other business leaders in Africa taking part in three days of discussion about what needs to be done next to expand trade and wealth creation across the continent.
The Africa Prosperity Dialogues is a strategic platform where movers and shakers in the African economy will elevate the objectives of the African Continental Free Trade Agreement (AfCFTA) from ambition to real action.
The summit will be a focused event where African leaders from diverse areas of national endeavour will gather each year to discuss and share experiences on initiatives required for Africa to achieve the goal of shared prosperity and to review the Africa Agenda for Action.
Principal Policy Advisor of the Economic Commission of Africa, Joseph Atta-Mensah has called for the removal of the VISA requirements among African countries.
According to him, the free movement of people on the continent is necessary to propel the economic growth of Africa.
Mr Atta-Mensah called for this rectification when discussing the topic ‘Africa Prosperity Dialogues: All you need to Know” on Accra-based Asaase Radio.
“You know, we fear each other and I don’t know why. We always use security as an issue to prevent people from coming but I think if there is a total collaboration among our security forces, to have data on someone [that can be done].
“Because just as there are bad people, there are good people who want to do good business to uplift the continent. So what we need to do is remove the VISAs completely, not VISA on arrival. And that can be done by having a common African passport. ECOWAS does it, we can do it and put on it African Union,” he noted.
Mr Atta-Mensah further urged business owners in Ghana to embrace the newly-established African Continental Free Trade Area (AfCFTA) which has its office situated in the country.
According to him, the onus lies on the business owners to take full advantage of it.
“Businesses always complain that government is not giving them the policies to operate but in North America, businesses are the ones who lobby for policies. “The African Continental Free Trade Area belongs to businesses so they should embrace it other than say that they are not been included because at the end of the day, they are the ones going to do the trading anyway.
As part of the government’s efforts to develop an integrated automotive value industry, the Trade Ministry has inaugurated the Ghana Automotive Industry Development Council.
The Council is made up of representatives of relevant stakeholders from both the public and private sectors.
The function of the Council will be to make recommendations to the government on the implementation of the Ghana Automotive Development Programme, including but not limited to the Incentive and Regulatory Framework, Access to Industrial Infrastructure, Vehicle Financing, Training, Technology Upgrading, Supplier Development, and Standards and Safety.
The drafting of the Ghana Automotive Component Manufacturing Policy will also provide incentives and a regulatory regime to attract component manufacturers into Ghana’s Automotive Industry whilst taking advantage of the existing resource.
The Ghana Automotive Industry Development Council will among others, develop an effective economic consultation structure to effectively address any issues related to Automotive Assembly activities and to provide input into any policy review exercise.
With the operationalisation of the Council, the Ghana Automotive Development Centre has also been established to serve as an Office Complex to among others host the Secretariat of the Council and provide offices for Policy Support, Vehicle Financing, Investment and Customs Facilitation, Training and Skills Development, Vehicle Testing and Certification as well as a showroom for exhibiting locally assembled vehicles.
The Minister of Trade and Industry, Alan Kyerematen at the inauguration of the council appealed to all players in the industry to continue to work together to promote the development and competitiveness of the players in the auto industry in Ghana and position companies to take full advantage of the African Continental Free Trade Area (AfCFTA).
The two nations’ commitment to maximizing the prospects provided by the AfCFTA is strengthened by the launch of value-added products under the brand name KETEPA.
Previously, Ghana has transported ceramics and palm kernel oil to Kenya and Cameroon through its National Coordination Office of the AfCFTA (GTI).
1700 cartons of the tea made by Kenya Tea Packers (KETAPA), a division of Kenya Tea Development Agency Holdings Ltd., were included in the maiden shipment of a 20-foot container (KTDA)
Kenya is the third largest producer of tea globally – behind China and India, and in 2021, exported 305, 000 metric tons worth US$ 1.2 billion.
Speaking at the unveiling of the first consignment, Eliphas Barine, Kenyan High Commissioner to Ghana, said, the African market is world’s largest free trade area with about 1.3 billion-person market.
He said, however, that intra-Africa trade was less than 20 per cent – a situation that needed to change as the continent was committed to creating wealth and prosperity for its people.
“…and the introduction of the KETEPA tea Ghana is a testimony of changing the narrative by leveraging the opportunities AfCFTA presents,” Mr Barine said.
He said Africa was under stress in her socioeconomic development and called for supporting and buying African products to create jobs for her rapidly growing youth population.
Catherine Afeku, responsible for Strategic Communications, National AfCFTA Coordination Office, said, having KETEPA tea in Ghana indicated that the single African market was bearing fruits.
She said Ghana would sooner than later send some chocolate, other cocoa products and coconut oil to Kenya, so “there are opportunities in Kenya for our entrepreneurs to explore.”
In an interview with the Ghana News Agency, the former Minister for Tourism, Arts and Culture, said Africa needed trade to stop the dependency on the western world.
“There is a plethora of value-added products in Ghana and our jobs is to let the Ghanaian entrepreneurs know what is possible under the Guide Trade and AfCFTA,” she said.
“The GTI seeks to allow commercially meaningful trading and test the operational, institutional, legal and trade policy environment under the AfCFTA.
“The products earmarked to trade under this initiative include ceramic tiles, batteries, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried fruits, and sisal fiber among others.”
30 Ghanaian businesses have received government assistance in obtaining certificates of origin that will allow them to begin trade within the African Continental Free Trade Area (AfCFTA).
The (Ghana) National AfCFTA Coordination Office, which acts as the country’s contact with the AfCFTA Secretariat, will provide assistance to the approved businesses.
The businesses are among the 230 potential exporters who have been identified and who will be assisted in understanding AfCFTA processes, procedures, and protocols as they create their export-ready products.
A certificate of origin is a document which attests that a product listed has met certain criteria to be considered as originating in a particular country.
It is issued by the Customs Division of the Ghana Revenue Authority (GRA) and the Ghana National Chamber of Commerce and Industry (GNCCI).
The National Coordinator at the (Ghana) National AfCFTA Coordination Office, Dr Fareed Kwasi Arthur, who made this known at the opening of a workshop in Accra yesterday, said two out of the 30 firms had been exporting under AfCFTA since October this year.
The two — Benso Oil Palm Plantation Limited and KEDA Ghana Ceramics Company Limited — exported palm oil products to Kenya and ceramics to Cameroon, respectively.
He said the coordination officer assisted the companies to meet the necessary protocol for the shipment of their consignments.
Dr Arthur said under the initiative, a company needed a certificate of origin issued by a competent authority, such as the Customs Division and the GNCCI.
He said the certificate of origin accompanied the consignment to help the authorities of the designated country determine whether or not the goods were from a member country under the agreement.
The coordinator said the issuance of the certificate was also to ensure that goods or products to be shipped met the necessary requirements under the protocol.
Official trading
Dr Arthur explained that trading under AfCFTA formally started on January 1, last year, with Kasapreko Company Limited and Ghandour Cosmetics Limited shipping their products within the African continent to test the process.
However, he said, official trading commenced on October 7, this year, making it the world’s largest free trade area in terms of participating member states after the formation of the World Trade Organisation (WTO).
He said the AfCFTA initiative had great economic, trade, as well as social, advantages for Africa if the continent advanced in infrastructure connectivity.
Maximising gains
Dr Arthur said the country had also put in place other institutional frameworks to help maximise gains from the initiative, including the establishment of the AfCFTA inter-ministerial committee, a national steering committee and technical working groups on all the seven clusters for boosting intra-African trade.
Additionally, he said, it had designed the AfCFTA National Action Plan and the National Export Development Strategy (NEDS) meant to help revitalise the country’s export development efforts, with a strong focus on Africa’s over 1.2 billion consumer market.
The workshop
The two-day workshop, being organised by the Trades Union Congress (TUC), in collaboration with the International Labour Organisation (ILO), seeks to build the capacities of participants on AfCFTA.
It is meant for 30 participants, who are mainly affiliates of TUC.
It features topics such as trade investment, decent work and the role of trade unions in influencing trade policies.
A Senior Technical Specialist at the ILO, Inviolata Chinyangarara, said trade unions were critical in the development of national policies across the globe.
She explained that the voices of trade unions needed to be heard to influence trade and investment policies.
“We are happy to collaborate with the TUC to build the capacities of its affiliate on the AfCFTA initiative,” she added.
This is due to the unfavorable tax regime in the country.
According to him, the high cost of borrowing coupled with some nuisance taxes are having severe impact on Ghanaian businesses intending to trade favorable under the continental programme, compared to their peers.
Speaking to Joy Business, Prof. Bokpin said unless the current tax regime in the country is reviewed, Ghanaian businesses will struggle to compete under the pact.
‘If you look at our tax basket, it is heavily indirect based. All of that contributes to high production cost of doing business”.
“If you put that together with electricity restrictions on the growth drivers of the economy, Ghanaian private sector has to borrow at a rate in excess of 35% percent…..you can’t compete”, he said
He pointed out that all these challenges are making it difficult for Ghanaian businesses to compete under AfCFTA.
“So you can see the fundamentals and can project how that can affect the Ghanaian private sector and the ability to maximize the participation of the AFCFTA. That’s the point that we are talking about’.
“As it stands now, we don’t get the clear picture and direction that government wants to create the enabling environment that guarantees private sector leadership”, he added.
The Ghana Free Zones Authority has revealed that it expects about US$230 million to be injected into the economy from thirty nine newly licensed companies by the Authority.
The thirty-nine new free zones companies which were licenced to operate within the last year and a half are also expected to bring in about US$529 million by way of export earnings into the country.
This was disclosed by the Chief Executive Officer of the Ghana Free Zones Authority (GFZA), Ambassador Michael Oquaye Jnr. during the launch of 2022 Investment Week.
“Since I took over as CEO, some 39 new companies have been licenced and they are expected to inject an estimated capital of US$230million into the economy. In addition, the estimated export earnings from the 39 companies is US$529million from an estimated production value of US$436million. I am also happy to report that the cumulative exports from the Free Zones enterprise since the programme’s inception stood at US$27billion as of 2020,” he said.
He stated that as the country is currently grappling with a balance of trade deficit and depreciation of the currency, it is critical that Ghana increases its exports to earn needed foreign exchange to stabilise the free fall of the local currency.
“Export-led industrial growth is one of the most appropriate strategies to achieve economic development; this has been the mandate of the GFZA. Thus, the Free Zones programme’s importance in reversing our balance of trade deficit and depreciating cedi is vital.”
Amb. Oquaye Jnr. also revelaed that the cumulative exports from the Free Zones enterprise since the program’s inception stood at USS 27 billion as of 2020.
This he noted indicates that Ghanaian companies also have the potential to take advantage of free zones incentives and make a mark in the international market. Currently, the total number of active companies is 217.
Out of the 217 active companies 72 are wholly Ghanaian-owned companies, representing 33percent; 74 are wholly foreign-owned companies, representing 34 percent; and 71 are joint ventures, representing 33 percent.
“I am giving this breakdown because the Free Zones programme has been misconstrued as mainly favouring foreign investors. On the contrary, the programme is open to all investors, both foreign and local. Moreover, with the opportunities that AfCFTA also offers, we are encouraging Ghanaian-owned businesses to take advantage of the 1.3 billion African market to expand their activities. The impact of these achievements on the economy cannot be overemphasised.” he added.
Micro, Small and Medium Scale Enterprises (MSMEs) have applauded Ghana’s National AfCFTA Coordination Office (NCO) and UNDP for equipping them with the requisite skills and understanding of the African Continental Free Trade Area in order to take advantage of the Continental Trading Agreement to expand their market and grow their businesses.
The Ministry of Trade and Industry, through the National AfCFTA Coordination Office in collaboration with the UNDP, undertook intensive education of Micro, Small and Medium Enterprises (MSMEs) in Kumasi as part of their Market Expansion Project aimed at equipping MSMEs to harness full benefits of the African Continental Free Trade Area (AfCFTA).
Several MSMEs who participated in the three (3) day training on AfCFTA attested to now having a deeper understanding of the African market, and what it will take them to build on their business and thus harness benefits of the AfCFTA as a continental trading agreement.
Lydia, Sarfoa, an SME and MD of Sarfosco ventures – producer of Star laundry soap said: “I didn’t know much about AfCFTA, but after this programme I’ve been able to learn how to prepare, plan and know the various market opportunities available in Africa for Small Scale Industries like us”. She expressed gratitude to the NCO and UNDP for the opportunity to understand nuances of the AfCFTA.
Constance Bonsu, CEO-Constance Naturals, couldn’t hide her joy of getting understanding into seeing her products on the shelves of shops in other African countries. “I am elated, because for the first time I can see AfCFTA has really come home; we have been engaged and given forms with the promise that they will be coming to visit us. So now I can confidently say that, yes, we are taking-off on AfCFTA; and, yes, they have really come home to the small business entrepreneur, and I hope they are going to live up to expectations on what they have inspired in us and we will be able to break through the continental market because of their interventions,” said Constance, who couldn’t hide her excitement.
Another SME, Benedicta Owusu, CEO-Benefoods and Consult, admitted her initial ignorance about the AfCFTA until benefitting from the training by the NCO in partnership with UNDP. “I have heard so much about AfCFTA, but I didn’t know how to position my business to take advantage of it. So, I am very grateful to the National AfCFTA Office and UNDP for this training.”
Elizabeth Agyapong is an SME involved in the manufacturing of organic skin-care products, and believes that she is now well prepared to storm the African market with the training offered by the Ghana National AfCFTA Coordination Office (NCO). “We’ve heard a lot about AfCFTA, but today’s meeting with the National AfCFTA Office and UNDP is so amazing because our products were going into other African markets without us knowing that we can actually do exports to those countries. We’ve learnt how to export, and the right ways to pass to do very good exports of our products to other African markets. I have been very fortunate and I’m thankful to be part of this training programme by the Ghana AfCFTA Office and UNDP,” she expressed.
According to Divine Kutortse, a Programme Officer at NCO and also the NCO/UNDP Project Officer, Aspiration 6 of the African Union’s Agenda 2063 envisions an Africa whose development is people-driven – relying on the potential of Africa’s people, especially women and youth. Furthermore, to broaden inclusiveness in operation of the AfCFTA through interventions that support young Africans, women and Small and Medium Enterprises – as well as integrating informal cross-border traders into the formal economy – is significant to implementing the simplified trade regime.
“Competitive youth-led firms have the potential to create more and better jobs, and foster production and trade of diversified goods and services across the continent; which promotes access to a wide range of goods and services and increased income, thus ultimately improving lives of the African people,” the NCO officer opined.
Regional Representatives of the Ministry of Trade and Industry and heads of Business Advisory Centres (BACs) and Business Resource Centres (BRCs) in some six (6) districts of Ghana – including Kumasi Metropolitan Assembly, Ketu South Municipal Assembly, Sefwi Wiawso Municipal Assembly, Jomoro Municipal Assembly, Sagnarigu district Assembly and Kassena–Nankana West district Assembly – have been trained on the AfCFTA and its requirements for Micro, Small and Medium Enterprises (MSMEs) by Ghana’s National AfCFTA Coordination Office (NCO) in collaboration with the UNDP.
According to Dr. Fareed Arthur, head of the AfCFTA National Coordination Office, the Government of Ghana through the NCO is committed to mobilising resources and implementing measures with a view to improving the export capacity of both formal and informal service suppliers, with particular attention to micro, small and medium size enterprises, women and youth suppliers.
The heads of state agencies with mandates to promote the activities of MSMEs were taken through the ACFTA’s current status, various protocols, legislations, rules and export requirements under the AfCFTA. They are expected to return to their various districts and disseminate information to MSMEs at the local level, to help them remain compliant to export requirements under the AfCFTA and boost their trade with Africa.
Daniel Owusu Ansah, a deputy director with Ghana Enterprise Agency in the Ashanti Region, expressed gratitude to the NCO, UNDP and MoTI for the insightful education on the AfCFTA.
“In fact, today I am happy to learn about AfCFTA, which is a single large market that creates borderless trading for 55 countries of Africa with a population of 1.3bn people and has the potential to generate GDP of US$3.4trillion. I have also learnt about the rules of origin components, to the extent that if it’s a good it must be grown and processed in the country. I have also learnt about exportable commodities under AfCFTA; and we were taken through the tools that will support our clients, the SMEs to go through. So, I must say I’m very excited about the programme and it is very educative.”
Henrieta Zatonaga, a deputy regional manager for the Ghana Enterprise Agency (GEA), also expressed her excitement for the training – stressing how beneficial it has been for her. “I have learnt about the rules of origin and how to administer the assessment tool; and I know when I get back to my district I will sensitise my MSMEs on how they can take advantage of the common Africa market, which is a great opportunity for them. And then we will look at how we can categorise the MSMEs in order to consider the capacities in which we can support them, in terms of training, access to certifications and tools required for their preparations to take advantage of the AfCFTA.”
The Business Advisory head for Ketu South Municipal Assembly, Rabiatu Ibrahim, expressed hope that her training on the AfCFTA by the NCO and UNDP will go a long way to improve the businesses of MSMEs in her district. “I have learnt about the certificate of origin and steps required to be taken in order to brand products and meet the standard criteria for exports under the AfCFTA; and when I go back home, I will also share with the MSMEs in my district the knowledge I have acquired.”
Shadrach Oko Annang, also an Assistant-head for the Business Advisory Centre (BAC) in Sewhi Wiaso, thanked the NCO and UNDP for the training – which he described as an eye-opener.
“A lot of people in the various districts have heard about AfCFTA but don’t know much about it. But due to this training, when we go back to our various districts we will be able to enlighten them on the processes, procedures and other requirements for trading with their counterparts in other African countries. We will also put in a lot of effort to bring this free trade into very good use,” he assured.
Strategic Sourcing and Industrialisation insights with Prof Douglas Boateng
While the terms ‘Made in Ghana, or South Africa or Kenya or Nigeria’ have become common components of goods and services produced on the continent, a broader focus on ‘Made in Africa’ may be the key to long-term business success and continental wide socio-economic development.
This is particularly pertinent when it comes to the AfCFTA initiative and strategic sourcing practices on the continent.
With a potential market of approximately 1.347 billion people, organisations need to begin to think beyond their own communities, national and regional boundaries and start to consider the opportunities available to them throughout the continent.
Not only will a focus on a ‘Proudly African’ way of doing business increase access to greater markets and suppliers, it will also allow organisations to strategically source continentally produced products and services, thus supporting socio-economic growth, SMME development, AfCFTA and long term industralisation in Africa.
Price-driven acquisitions an ongoing threat to strategic sourcing and industrialisation
Current organisational procurement and consumer buying behaviors – which tend to focus on price-driven acquisitions – are hampering long-term industrialisation and socio-economic development in Africa.
While price is always an important element of sourcing and procurement, organisations and consumers in Africa need to recognise that the cheapest price does not always equate to the best value for money for society as a whole.
But, how can organisations and individuals alike begin to move away from short-term price-focused sourcing and consuming behaviours, and initiate long-term focused and developmental driven procurement habits? The possibilities vary. But from a strategic industrial and consumer sourcing perspective, the following should be considered.
Local should mean continental
To begin with, a mindset change, when it comes to the term ‘local’ needs to be promoted. Instead of understanding the idea of ‘local’ as being related to national, for example, Ghanaian, or South African or Kenyan or Nigerian or Namibian, production and services should instead be viewed as an African (ie continental product).
This focus on continental instead of national will open up greater opportunities for access to a larger number of products and services, while at the same time allowing for an expansion of potential markets.
Sourcing must be value driven and not price driven
Next, when it comes to sourcing, organisations and individuals on the continent need to be value driven and not cost driven. This means that instead of sourcing products and services based on just the ‘best price,’ they should rather take the quality and subsequent long-term value of the goods for industry and society into consideration.
Cheaper does not always mean better or value for money, and in a market rampant with low-cost, poor quality products, organisations should be weary of the influence that short-term price gains may have on the sustainability and success of their business and in the long term, on society
Source ‘locally’
Organisations should be encouraged to first source products produced locally (ie on the continent). If such sourcing attempts are unsuccessful, only then should they turn to the international market.
This practice of providing African organisations with the opportunity to supply products and services to their peers and continental counterparts, allows for the development, support and growth of SMMEs, long-term industrialisation and socio-economic development on the continent.
Support ‘Proudly African’
With the concept of sourcing locally first in mind, there needs to be a movement towards promoting ‘Proudly African’ and ‘Made in Africa’ products.
Instead of focusing purely on individual countries in which products are produced, a ‘Made in Africa: produced in Ghana, South Africa or Mozambique’ concept needs to be supported.
This support of African products and services will not only encourage a break in popular trade barriers, but will also enable the continent to tackle supply chain issues and challenges as a collective whole, rather than as individual, separate nations.
By following the above-mentioned suppositions, organisations on the continent may begin to reverse current short-term industrial and consumer behavior, and as such, prevent mainly price-driven acquisitions from continuing to de-industrialise the continent.
In addition, by promoting a continental rather than an individual country procurement and sourcing environment, organisations can contribute towards the acceleration of industrialisation, SMME growth, job creation and regional development in Africa.
In short, large political and socio-economic issues need to be tackled as a collective to break down artificial trade barriers. In time, African economies can move away from country specific initiatives to ‘Proudly African’ initiatives.
For strategic sourcing to change the economic fortunes of the continent, it is crucial that Africans educate and encourage individuals and organisations to think beyond their own community and national boundaries, and to use strategic sourcing practices to promote continent-wide development.
Douglas Boateng, Africa’s first ever appointed Professor Extraordinaire for supply and value chain management (SBL UNISA), is an International Professional certified Chartered Director and an adjunct academic. Independently recognised as one of the vertical specific global strategic thinkers on industrialization, supply and value chain governance and development, he continues to play leading academic and industrial roles in sectorial reforms both in Africa, and around the world.
He has received independent recognitions and numerous lifetime achievement awards for his extraordinary contribution to the academic and industrial advancement of supply chain management from various international organisations including the Chartered Institute of Procurement and Supply, the Commonwealth Business Council and American multi-national Hewlett Packard (HP). For more information visit www.douglasboateng.com and www.panavest.com
Panelists discussing female entrepreneurship have asked the Government to put women-led businesses at the centre of solutions to the current economic hardship.
They said the time had come for Ghana and other African countries to be intentional about addressing the barriers that impeded the business operations and growth of women-led businesses, especially those in the agriculture value chain.
They said this during a panel discussion at the launch of a study that assessed the potential of women-led Micro, Small and Medium-sized Enterprises (MSMEs) in Ghana to take advantage of the African Continental Free Trade Area (AfCFTA).
They noted that supporting women-led enterprises would not only help speed up Ghana’s economic recovery and transformation agenda, but make the economy resilient against future economic shocks.
The survey research report launched in Accra by CUTS International was prepared by the Aya Institute for Women, Politics and Media, with support from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
Professor Alufar Bokpin, an Economist and professor of Finance, said the time required that women-led businesses were given the platform and requisite financial support to turn things around.
He said: “It is in hard times like these that we see the patience, endurance, entrepreneurial and innovative skills of women at home and in the office and in managing businesses, so, let’s promote women-led businesses.”
“If we will be mindful to use the limited fiscal space that will be created as we go through reforms in enabling women-led businesses and traders, I am very sure will come out of this crisis stronger,” he added.
The professor of Finance called for administrative reforms that would make women-led businesses “truly lead the country’s quest for solutions to the current difficulties”.
Mrs Fatima Ali Mohamed, the Chairperson of Women in Agribusiness, Association of Ghana Industries (AGI), called for a shift in the consumption attitude of Ghanaians and Africans.
“The problem is that we’re producing what we don’t eat, then we import what we eat. We import over 950,000 tonnes of rice and eat rice in the morning, lunch and dinner, but we don’t grow enough rice,” she lamented.
“Let’s stop talking flowery and get to the real problem. Let’s get our leaders to move away from this ‘what’s in it for me syndrome’. We need to lift our people and it’s high time we did it,” the AGI Women in Agribusiness Chairperson said.
Mrs Agnes Gifty Adjei-Sam, the Director of Market Development and Promotion at the Ghana Export Promotion Authority (GEPA), called for tax incentives and easy access to funds for women-led businesses.
Madam Kakazi Kacyira, a Project Assistant at the AfCFTA Secretariat, said a protocol would be ready next year to support women and youth-led businesses to capitalise on the opportunities of the free trade.
“The protocol is to make legally binding commitments as to how women can benefit from the trade agreement and the second is to deal more with informal cross-border traders by formalising the sector,” she said.
Mr Appiah Kusi Adomako, the West African Regional Director for CUTS International, said the dialogue was important because of the role women played, particularly in the informal sector.
He said there was a lot to be done to support women-led businesses to increase trade, especially on the African continent and noted that they would be organising a series of dialogues to accentuate and escalate the issues to policymakers.
The South African high commissioner to Ghana, Grace Jeanet Mason, has said her country is ready to adopt Ghana’s One District One Factory (1D1F) programme to enhance industralisation at the district level.
Mason said the 1D1F programme provides a great opportunity for a thorough industrialisation drive.
She said South Africa will continue to collaborate with Ghana to improve bilateral trade under the
The South African high commissioner to Ghana, Grace Jeanet Mason, has said her country is ready to adopt Ghana’s One District One Factory (1D1F) programme to enhance industralisation at the district level.
Mason said the 1D1F programme provides a great opportunity for a thorough industrialisation drive.
She said South Africa will continue to collaborate with Ghana to improve bilateral trade under the AfCFTA.
Speaking on the Asaase Breakfast Show on Monday (31 October), Mason said, “… when the president [Ramaphosa] was here [Ghana] in December, we had conversations on the successes that we see as South Africa in the One District One Factory (1D1F).”
“That is something, that we as South Africa, will then adopt as well to look at our district level, how we continue to industrialise because that is part of the Africa Continental Free Trade Area (AfCFTA).”
The high commissioner said South Africa will continue to leverage Ghana’s comparative advantage in agriculture for the growth of the continent.
“So those are the comparative advantages and opportunities that we will leverage, amidst the current economic situation,” she added.
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Speaking on the Asaase Breakfast Show on Monday (31 October), Mason said, “… when the president [Ramaphosa] was here [Ghana] in December, we had conversations on the successes that we see as South Africa in the One District One Factory (1D1F).”
“That is something, that we as South Africa, will then adopt as well to look at our district level, how we continue to industrialise because that is part of the Africa Continental Free Trade Area (AfCFTA).”
The high commissioner said South Africa will continue to leverage Ghana’s comparative advantage in agriculture for the growth of the continent.
“So those are the comparative advantages and opportunities that we will leverage, amidst the current economic situation,” she added.
The introduction, and successful implementation of the National Export Development Strategy (NEDS) will transform Ghana’s economy from import dependency to export-driven and contribute to resolving trade imbalances.
It will build, strengthen, and create an enabling environment for local industries to increase production and add value to their products to significantly contribute to the country’s industrialization agenda to generate income.
Dr Martin Akogti, the Zonal Director of the Ghana Export Promotion Authority (GEPA) in charge of Upper East and Upper West Regions, said this at Navrongo as part of the nationwide district level sensitisation workshop on the implementation of NEDS and AfCFTA.
He said it would also help to reposition Ghana’s economy and local businesses to take full advantage of the Africa Continental Free Trade Area (AfCFTA) and increase foreign exchange earnings to address the economic challenges.
NEDS is a 10-year policy document, designed by GEPA and other relevant institutions is meant to empower businesses in Ghana especially those in Non-Traditional Exports (NTEs) sector to diversify production and contribute to the country’s industrialisation agenda.
It seeks to build the capacities of exporters and businesses to increase production and non-traditional exports to significantly contribute to achieving the revenue target of at least US$25.3 billion (about $78 per person in the US) by 2029.
Dr Akogti said it was about time stakeholders paid attention to promoting the consumption of locally produced products and adding value to the products for export, to help address challenges facing the country.
He said the NEDS would not only open opportunities for the export value chain actors but would help producers expand the supply base and add value to local products, create enabling business environment and build capacity of human capital.
The Regional Director urged the various Metropolitan, Municipal and District Assemblies to identify at least one exportable product and invest in it to ensure that actors in the value chain increased production to enhance exportation.
“Currently, the cedi is suffering a lot because we import virtually everything and that is why the programme is about making sure that the economy is stable and we are calling on everybody to stimulate the interest of people to begin thinking about export,” he added.
Alhaji Yakubu Yussif, the Representative, National Coordination Office, AfCFTA Ghana, explained that the implementation of AfCFTA was creating a convenient and borderless market opportunities for African countries to increase trade and generate revenue.
He said the government was committed to facilitating trade of Ghanaians businesses with other African countries through the roll out of the National Policy Framework for Action Plan and urged Ghanaian exporters and stakeholders in the export value change to add value to their products and take advantage of the market.
“We are looking at increasing African export by 81 per cent and increasing export within Africa by 29 per cent, so it is our responsibility to work with the relevant stakeholders to ensure that the tariffs and non-tariffs barriers are worked on so that our exporters in Ghana will have access in moving their goods across African continent to access the market,” he added.
Mr Joseph Adongo, the Kassena-Nankana Municipal Chief Executive, noted that shea butter, groundnut and rice were the major products in the Municipality and noted that NEDS would build the capacity of producers and exporters to add value to their products and access quality market.
The engagement was on the theme, “Driving export through the National Export Development Strategy” and brought together stakeholders in the value chain of groundnut and shea butter production and processing.
Secretary-General of African Continental Free Trade Area (AfCFTA), Wamkele Mene, has disclosed that from next year, the secretariat will focus on roping in young entrepreneurs into the trade initiative.
According to him, products traded under AfCFTA are value-added goods that are locally manufactured from various countries of origin.
Speaking at a press conference in Accra on Thursday, Wamkele Mene said, “We have agreed that next year the focus for the guided trade initiatives will be on young entrepreneurs. Now, they can benefit from the AfCFTA.”
He also noted that AfCFTA is for the private sector, Small Medium Enterprises (SMEs), smallholder farmers, among others.
Meanwhile, Ghana, Egypt, Cameroon, Mauritius, Rwanda, Tanzania and Tunisia are the 7 countries participating in AfCFTA.
The products traded include ceramic tiles, car batteries, pharmaceuticals, palm kernel oil, coffee, rubber, tea, components for air conditioners, among others.
AfCFTA was introduced in 2018 with the aim of creating a single market for Africa, as well as, ensuring the free movement of goods and services on the continent.
This free movement of goods and services will help expand Intra-African trade.
This implies that goods will be sold at a relatively cheaper price because of the increase in production which will, in turn, create both direct and indirect jobs for the teeming unemployed youth.
The free trade area also provides traders and importers an opportunity to stay competitive.
Businesses when conducted in a free and safe environment will help reduce poverty in member states as well as create sustainable development.
For Ghana and rest of Africa to fully reap the benefits of the Africa Continental Free Trade Area (AfCFTA), there is the need to “strategically” move away from short term price-based buying to value and developmental based sourcing.
Strategic sourcing, according to Professor Douglas Boateng, refers to the ‘big picture’ element of supply chain management, with a prime focus on the entire benefits of sourcing to organisation, industry and society.
“There are many existing structural inefficiencies that have threatened the success of the Agreement but thankfully, we are gradually removing them. But this will not yield the intended results if we continue to stick to the old, and evidently flawed approach to the sourcing factors of production,” Professor Boateng stated in an extensive session with the B&FT.
Strategic sourcing has come into renewed focus following the advent of COVID-19, as individuals, companies and governments sought value pricing due to unprecedented disruptions to global supply chains.
Prof. Boateng, however, emphasised that whilst “maximizing” spending remains one of the principal goals of strategic sourcing, it does so by taking into consideration the total acquisition cost of ownership incurred over the medium-to-long term. “Strategic sourcing is not about the cheapest price, but rather about value pricing and attainment,” he re-emphasized.
According to Professor Boateng, oftentimes decision makers have been carried away by the notion that the best value for money purchase is the one where they pay the least amount of money upfront. However, the global evidence from extensive research and experience shows that, it is not necessarily the case.
Africa’s first-ever appointed Professor Extraordinaire for supply and value chain management, governance and Industrialisation, former non-executive chairman of the Public Procurement Authority and currently chairman of Ghana’s Minerals Income and Investment Fund also advised if Africa can focus on developing its supply chain infrastructure, it would not only allow for improved intra-continental trade but would see the region emerge as a major player in the global trade.
Already, the continent’s infrastructure investment deficit according to the African Development Bank will be as much as US$170 billion a year by 2025, with an estimated gap of around $100 billion a year with transportation networks being one of the areas in which this is most pronounced. Road networks in the continent’s 16 landlocked countries are woefully inadequate, coupled with poor port administration, and underdeveloped rail and waterway systems.
In addition to measures being undertaken to overcome some of these challenges, Prof. Boateng called for individuals, businesses and nations to think outside of their local and national contexts and to make use of enabling information technologies to foster continental networking and information flows.
“Large political and socio-economic issues need to be tackled as a collective to break down artificial trade barriers. In time, African economies can move away from country-specific initiatives to ‘Proudly African’ initiatives – for example, a product might be labelled ‘Made in Africa,’ produced in Ghana or South Africa or Kenya etc.
Through this, the definition of ‘buying local’ automatically changes to strategically sourcing continental-wide produced goods and services. Such a move has positive implications for AfCFTA,” Prof. Boateng explained.
He also recommended that strategic sourcing becomes a mandatory feature across the education spectrum as well as in the procurement policies of businesses and the central governments.
Ghana and Congo on Thursday decided to develop and create opportunities for trade and commerce between the two countries under the African Continental Free Trade Area (AfCFTA).
This was the outcome of bilateral talks between President Akufo-Addoand his Congolese counterpart, Felix-Antoine Tshisekedi Tshilombo, when the latter called at the Jubilee House, Accra as part of his three-day visit to Ghana.
The meeting which underscored the need for the two countries to deepen their trade relations and bonds of friendship noted that AfCFTA, which aim was to increase the volume of trade among countries on the continent, was a good opportunity for trade between Ghana and Congo.
Both leaders also discussed the growing threat of terrorism and violent extremism in West Africa and Central Africa and dwelt on the need to work together to fight the nuisance.
President Akufo-Addo said it was time the two countries Congo strengthened ties that dated back to when Congo achieved independence from Belgium in 1960.
“We know that relations between us go way back to Congolese Independence. The first serious foreign policy initiatives in Ghana had to do with the dispatch of Ghanaian troops by President Nkrumah to assist the then prime Minister, Patrice Lumumba, under the UN peacekeeping mandate and ever since then, Ghana has become a strong peacekeeping country sending troops.
So, these are strong relations, and we think that the time has come to enhance and build those relations even stronger than they have been in the past. We are very happy to have you here,” he said.
Touching on the security situation on the African continent, President Akufo-Addo noted that those were matters of common concern in both countries.
“We have a lot of security issues in West Africa, which I am sure you are fully abreast of. The Jihadist menace which we have here come from the Sahel which is next door to us in Burkina Faso to the North of our country is a major concern for us.
“In the same vein, you have these same kinds of people in the central part of the Continent, which is also a problem for you. I think that that provides us with an opportunity to be able to have some clear ideas of how we can all work together to rid our continent of this menace,” he pointed out.
President Tshilombo also noted that the volatile security situation in his country was largely due to the support being given to rebels fighting his country by neighbouring Rwanda.
He appealed to President Akufo-Addo to help fight the resurgence of violent extremists in Congo, requesting that Ghana leverages its position on the United Nations Security Council Security Council (UNSC) to get Rwanda sanctioned for supporting non-state actors disturbing the peace in that country.
The Congolese leader also urged President Akufo-Addo to press the UNSC to lift the arms purchase embargo placed on the DRC to enable the country to purchase arms and ammunition to defend its sovereignty.
The Ghana Export Promotion Authority (GEPA) is building the capacities of Small and Medium Scale Enterprises (SMEs) to help empower and strengthen them to increase production base to enter the international market.
Mr Francis Fosu Kwakye, Deputy Zonal Officer for Ashanti, Bono and Bono East regions, who stated this, said improvement of standards of products of SMEs and exporting more, would help the country achieve the National Export Development Strategy (NEDS) target of 25.3 billion dollars by 2029.
He was speaking at a day’s export school organised by GEPA in Ashanti region for registered SMES and prospective exporters in Kumasi aimed at equipping participants in the knowledge and skills needed for export.
They were taught on contract negotiations, social media marketing, African Continental Free Trade Area (AfCFTA), trade agreements, skills in non-traditional exports (NTEs), among others.
Mr Kwakye said GEPA was building capacities of more exporters to expand production and add value to manufactured goods.
He said among the products that were being supported to help increase their export targets and improve the economy, were sugar, salt, cocoa products, pharmaceuticals and textiles.
Ms Diana Bosompem, Chief Executive Officer (CEO) of 360 Naturals Cosmetics, said the export school was a refreshing course to equip them with skills to enhance their exports activities.
She encouraged all SMEs to register their businesses with GEPA, to acquire the knowledge needed to improve their businesses and be export worthy.
Former President, John Dramani Mahama, has urged all African countries to take advantage of the African Continental Free Trade Area (AfCFTA).
He stated that partaking in the free trade area will help develop their economies, as well as, stay competitive on the market; both locally and internationally.
Speaking at a virtual forum on Thursday, October 13, 2022, John Dramani Mahama said, “We must advantage of AfCFTA, grow our values and get ready for increased international trade.”
Meanwhile, Ghana, Egpyt, Cameroon, Mauritius, Rwanda, Tanzania and Kenya are the 7 countries participating in AfCFTA.
The products traded include ceramic tiles, car batteries, pharmaceuticals, palm kernel oil, coffee, rubber, tea, components for air conditioners, among others.
AfCFTA was introduced in 2018 with the aim of creating a single market for Africa, as well as, ensuring the free movement of goods and services on the continent.
This free movement of goods and services will help expand Intra-African trade.
This implies that goods will be sold at a relatively cheaper price because of the increase in production which will, in turn, create both direct and indirect jobs for the teeming unemployed youth.
The free trade area also provides traders and importers an opportunity to stay competitive.
Businesses when conducted in a free and safe environment will help reduce poverty in member states as well as create sustainable development.
AMemorandum of Understanding (MoU) has been signed by Wamkele Mene, Secretary General of the Africa Continental Free Commerce Agreement (AfCFTA) Secretariat, and Daniel McKoley, Chief Executive Officer of the McDan Group, to establish a collaboration to promote trade among African nations.
On Friday, October 7, 2022, at the McDan Private Jet Terminal in Accra, the agreement was signed. It was signed on the occasion of the 2nd anniversary of the AfCFTA Agreement and the introduction of the AfCFTA Guided Trade Initiative.
McDan Shipping will now have the ability to load and ship products between AfCFTA members. Following this agreement, McDan Aviation bought seagoing commerce ships and cargo planes to serve the AfCFTA.
Minister of Trade and Industry, Alan Kyerementeng, hailed Daniel McKorley’s efforts and said that his plan will significantly contribute to the success of the AfCFTA.
In order to commemorate the McDan Group, he urged Africans to do so and urged other African businessmen to do the same.
The minister also mentioned that the event signifies that AfCFTA is not only on paper but in action.
He continued by saying that the initiative’s introduction also represents the governments of Africa’s commitment to helping the private sector flourish. Meanwhile, the Deputy Minister of Trade and Industry, Herbert Krapa, has announced that Ghana will soon commence free importation and exportation of goods and services with some seven African countries.
Cameroon, Egypt, Kenya, Mauritius, Rwanda, Tanzania and Tunisia will be trading with Ghana under the African Continental Free Trade Area (AfCFTA) agreement, Mr Krapa noted.
The continental free trade expected to operate within the framework of the African Union Agenda 2063 will provide new export opportunities for African countries to trade with one another without tariffs or other hindrances, with the aim of ensuring sustainable economic growth on the continent.
The Minister of Trade and Industry, Alan Kyerematen, has called on governments of African countries to put in place the needed institutional and logistical support frameworks to ensure that they collectively reap the full benefits from the implementation of the African Continental Free Trade Area agreement.
Speaking at the launch of the Africa Guided Trade Initiative in Accra, the minister stressed that “at our national levels, we should have institutional structures and a programme of action for boosting intra African trade to enable entrepreneurs to produce to take advantage of the huge market provided by the agreement.
“We must ensure that we have the logistics support to ensure that we are able to move the goods from one country to another.”
According to the minister, the launch “symbolizes that AfCFTA is not just on paper but a reality. And we are moving from talk and negotiations to action. It also symbolizes that governments in Africa who have been involved in the negotiations are now giving way to the private sector to make it a reality.”
The guided trade initiative was launched for seven member countries.
These seven countries which have signaled their readiness to start trading under AfCFTA were Tanzania, Mauritania, Kenya, Egypt, Cameroon, Rwanda, and Ghana.
Speaking at the same event, Secretary-General of the AfCFTA Secretariat, Wamkele Mene said at least 96 different products from the seven countries could be freely traded under the rules of AfCFTA.
Products approved to trade under AfCFTA include horticultural products, pharmaceuticals, rubber, aluminum kitchenware, sugar, steel, and wooden products. These products originating from Africa will enjoy duty-free and quota-free trading among the partnering countries.
“This is the moment the founding mothers and fathers of the Organization of African Unity have longed (for). We have finally honored and made reality the vision of those who liberated our continent.
“We are connecting East Africa to West Africa, North Africa to Southern Africa. Trade will be the driver of inclusivity, creating opportunities for young Africans. So we have taken the first journey today, and I hope in 15 years, we will have succeeded in lifting millions and millions of Africans out of poverty,” Mene said.
Ghana has issued its first certificate of full commercial trading to a ceramic tiles production company to export its products under the African Continental Free Trade Area (AfCFTA) Guided Trade initiative.
In the same vein, the Customs Division of the Ghana Revenue Authority (GRA) has received the first consignment of goods under the initiative from Rwanda, with delivery already done.
The Assistant Commissioner of Customs in charge of the AfCFTA Secretariat, F.Y. Akoto, who made this known in an interview with the Daily Graphic in Accra yesterday, said on September 30, this year, the Customs Division issued the certificate of trading to a tiles manufacturing company, Keda Ghana Ceramics Company Limited, located at Shama in the Western Region, to export a consignment of its products to Cameroun.
“It is expected that when the products reach Cameroun, their customs officials will give the necessary preferential treatment to Keda Ceramics for it to enjoy reduced tariffs and quota-free facility,” he said.
On the imports from Rwanda, he said they were made up of coffee products which were received at the Kotoka International Airport (KIA).
“Ghana Customs processed the Bill of Entry on the consignment, granting the importer the necessary tariff cuts after he had satisfied all the documentary requirements,” he said.
Mr Akoto added that a second consignment of tea products from Rwanda arrived at the KIA yesterday and documents on the goods were being processed for possible delivery, possibly before the close of work yesterday.
Second company
He further indicated that a second Ghana-based company, the Benso Oil Palm Plantation (BOPP) at Adum Banso, also in the Western Region, was expected to export palm kernel oil to Kenya in due course.
On the other hand, consignments of tea products were expected from Kenya, while meat products were also expected to arrive from Egypt, he said.
“This means that the AfCFTA agreement has come into full force and our manufacturers can take advantage of it to export to other countries,” he added.
F.Y. Akoto — Assistant Commissioner of Customs in charge of the AfCFTA Secretariat
Guided Trade
The Guided Trade initiative, which will be officially launched in Accra today, symbolises the commencement of commercially meaningful trade, starting with seven countries — Ghana, Cameroon, Egypt, Kenya, Mauritius, Tanzania and Malawi.
Mr Akoto explained that those countries volunteered to represent the eight economic groupings in Africa, namely: the Economic Community of West African States (ECOWAS), the Arab Maghreb Union (AMU), the Common Market for Eastern and Southern Africa (COMESA), the Community of Sahel-Saharan States (CEN-SAD), the East African Community (EAC), the Economic Community of Central African States (ECCAS), the Southern African Development Community (SADC) and the Intergovernmental Authority on Development (IGAD).
Under the initiative, the AfCFTA Secretariat will assist the countries to test AfCFTA trading documents and procedures on pre-selected shipments of goods among the countries.
It will guide shipments through customs clearance, including reduced tariff treatment under the AfCFTA in the receiving countries.
Foreign-owned companies
Explaining why Keda Ceramics, a Chinese-owned company, benefited from the agreement, the Customs officer said Keda, per its production process, qualified under the rules.
“Under the rules, a foreign company operating in an African country that has signed on to the AfCFTA agreement qualifies to participate in the trading if the raw materials for its production are sourced locally.
“In the case of Keda Ceramics, we visited the factory for inspection and realised that 99.97 per cent of its raw materials are internally acquired, so it qualifies to trade under the agreement,” he said.
Mr Akoto pointed out that AfCFTA was not set up solely for Africans, saying: “Once you set up in Africa and qualify under the rules, you are free to trade.”
He, therefore, encouraged foreign companies operating in the country to work towards benefitting from the agreement.
Allowing foreign-operated companies to participate in the trading activities if they fulfilled the requirements set out under the AfCFTA agreement would also improve foreign direct investments (FDIs) into Africa, he said.
FDIs into African countries hit a record $83 billion in 2021, according to the United Nations Conference on Trade and Development’s (UNCTAD’s) World Investment Report 2022.
Ghana ready
Emphasising Ghana’s readiness for the take-off of the AfCFTA, the Customs officer said: “We have the structures in place for an effective take-off.”
“The Ministry of Trade and Industry, the Ghana Chamber of Commerce, the National AfCFTA Coordinating Office, the Customs Division of the GRA, together with the AfCFTA Secretariat, are helping the companies to meet the requirements.
“The experiences gathered out of this will help streamline our processes for the smooth implementation of the policy,” he explained.
Addressing challenges
Mr Akoto said some challenges that had been identified were being addressed.
“We have been helping local companies to go through the systems. Some of them have been saying although they hear about free trade in Africa, they don’t believe it, so we need to educate them on what it takes to benefit from the free trade agreement,” he said.
Chief Executive Officer (CEO) of the McDan Group of Companies, Daniel McKorley, has admonished brands on the continent to leverage the opportunities that come with the African Continental Free Trade Agreement (AfCFTA).
Addressing brands that had gathered at the Labadi beach hotel for the 5th edition of the Africa Rising Leadership Conference, he noted that this is the surest way to ensure that the continent is recognized on the global map in terms of trade.
He believes “the way forward for African brands for growth, sustainability, and robust capacity is to be able to break down all the barriers to trade to enable intra-African trade to flourish.”
“And that is why I am so excited to partner with the African Continental Free Trade Area (AfCFTA) as they begin their maiden journey to break down those walls from the North to the South and from the East to the West of Africa,” he said.
What is AfCFTA?
The African Continental Free Trade Area (AfCFTA) is a free trade area encompassing most of Africa. It was established in 2018 by the African Continental Free Trade Agreement, which has 43 parties and another 11 signatories, making it the largest free-trade area by number of member states, after the World Trade Organization.
AfCFTA is intended to accelerate intra-African trade and boost Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations.
It promises a greater and deeper level of economic integration as well as increased investment, increased commerce, better jobs, a decrease in poverty, and shared prosperity throughout Africa.
Speaking during the conference, McDan reposed a lot of confidence in brands on the continent, stressing that “we must remember, no one is going to do it for us. African brands are like African families, they have always known how to do it for themselves. So, while they rely on others, their foundation is always strong. I believe in the future of brands in Africa.
“It is possible if we can work within the global and local economic challenges, knowing that they are part of our business evolution, understanding also that the challenge of change will continually come, and navigating the business brands through this is part of the purpose to success,” he added.
Touching on how to build and sustain resilient brands even in the midst of a crisis, McDan entreated brand leaders to “learn and teach [their respective] teams to be adaptable and responsive to the tiniest level of change.”
He also stressed the need for systems and structures to be established to ensure the success of a brand or a business.
“Strong personalities don’t just build a business, rather, systems and structures. You must let your systems, structures, and good governance work and your business will succeed,” he said.
Key among the factors was he mentioned was discipline. He asserted that, “discipline is not just a keyword but a watchword.”
“And above all, the fourth industrial revolution is closer than we ever thought. We felt it through the pandemic, we feel it now, and we are going to feel it tomorrow. I believe that African business brands with purpose will respond to change and will sustain its growth and leave lasting legacies,” he added.
A one-day training program was held in Accra to help 60 small and medium-sized businesses (SMEs) develop the skills necessary to defend their brands from theft.
The Accra Regional Chamber of Commerce and Industry (ACCI), in collaboration with the Ghana Industrial Property Office, is holding the workshop in an effort to raise awareness of intellectual property as a tool for enhancing creativity and innovations.
Discussions on ways to advance and defend intellectual property rights in the nation and at the regional level, particularly in the framework of the Africa Continental Free Trade Area, were made available to participants (AfCFTA).
Running a business
The Chairperson of the chamber, Nana Agyenim Boateng, at a meeting in Accra on September 14, observed that running a business in the country keeps getting tougher and harder by the day.
“For this reason, I cherish every opportunity to network and engage with great minds like you here because by this, we learn off each other to grow our businesses.
“Today we get to tackle a very important topic critical to the future of our businesses, thus intellectual property,” he said.
He said the focus of the meeting would primarily be on industrial property rights which borders on the protection of investments in product development, brand or design and the exclusive rights to prevent others from using protected design or invention.
He said a lot of businesses have lost huge sums of money through unending legal tussles in a bid to protect what’s rightfully theirs.
“And now with the commencement of AfCFTA and subsequent opening of our markets to the whole continent, there could not have been a better time than now to train on intellectual property rights.
“For this reason, the chamber has invited personnel from the Ghana Industrial Property Office to lead us in this important discussion.
“Also, in the spirit of networking and doing business among ourselves, we have arranged a mini-exhibition to display member products and services outside. We encourage all of us here to take a stroll to their tables and patronise the items on display,” he said.
Building competencies
The Accra Regional Manager of the chamber, Daniel Osei Torgbor, in an interview with the Graphic Business after the meeting, stated that the programme offered opportunity for businesses to build up competitiveness and capacity to protect their products and services against theft with the advent of the single market.
He said the programme was part of the chamber’s monthly engagement with its members and as such were treated to topics of interest on how they could scale up their businesses and navigate through challenges.
“For this month, we are focusing on intellectual property to help members understand what intellectual property was all about,” he said.
Mr Torgbor said this would enable businesses to protect their products and services from being pirated.
“With the advent of AfCFTA, we thought that as our market is going to open, we need to secure our products against pirates,” the Regional Manager said.
To actualize the dreams of African Continental Free Trade Area (AfCFTA) and keep it afloat, the Ghana International Trade and Finance Conference (GITFiC) has taken a step further to launch a handbook on its activities.
The book; ‘Actualising the African Economic Vision; A practical handbook on AfCFTA’, which was launched at the Pacific Alliance Embassy in Accra received high patronage and would serve as the guideline for African leaders, the Academia, Trade and Finance community and all other participants of the AfCFTA.
In his welcome address, Mr Selasi Koffi Ackom, Chief Executive Officer of GITFiC said it took a great deal of work with of consultations, in-depth analysis, and references to come out with the final product.
“This journey began for us when we took the 3rd conference to the Headquarters of the African Union Addis Ababa in 2019 and succeeded in getting a number of stakeholders from the four corners of the continent to the 3rd conference, including; Finance Ministers, UNECA, Trade & Development Bank in Kenya. ECOWAS Bank in Lome, Afrexim Bank in Egypt, Trade Ministers, Finance and Trade Experts, Agric, Aviation et al”.
He said in 2020, they brought Chief Trade Negotiators, Deans of Premier Universities and Senior Media men and women from Africa back to Accra to advance the conversation on the AfCFTA, when Accra was officially declared the Commercial Capital.
“Rightly so because Accra hosts the AfCFTA secretariat and has a rich history of both colonial and present, cross border trade emergence and also as the first country in Africa, south of the Sahara to gain independence.
He said in 2021 they brought monetary and financial magnets from Central Banks in Africa to major stakeholders to discuss the Pan African Payment and Settlement System and its regulatory antecedents, where President Akufo-Addo gave the Keynote address through Vice President Mahamadu Bawumia.
He said it was revealed in sections of the survey report that literature on the AfCFTA were missing and despite the gross interest in the subject matter by the public, almost nothing concrete was there to read more so, in a simplified form.
Mr Ackom said the book was inspired by all Heads of State on the African Continent and the advent of the AfCFTA had received substantial interest and set forth a renewed sense of optimism and conviction that seeks to propel Africa into the league of global trade powerhouse.
He said the book was expected to reach every educational complex on the continent through the help of State Agencies, Continental Institutions with requisite funding and Corporate Africa at large.
“This book has been devoid of large leaflets and content. The main aim here is to encourage reading and attract same. The book comprises 10 chapters however; these 10 chapters give a complete understanding of the AfCFTA and its functional implementation structures and practically expose the reader to the opportunities within the AfCFTA.
“The book has diagrams, info-graphics and photos to spice reading and give a pictorial meaning to the context and content and is currently in two languages; English and French and the African Union has recommended for our immediate attention to have the book translated in all recognized languages by the Union in a message sent to us on September 7th, 2022. These languages include; Arabic, Kiswahili, Portuguese and Spanish.”
He said plans were afoot to translate it into Spanish, Arabic and Portuguese.
He commended Ambassador Albert Muchanga, Mr. Nyame-Baafi, Mr. Bernard Afreh, Mr Tsornam Akpeloo and several other Chief Trade Negotiators who contributed to the practical book in diverse ways.
Madam Claudia Turbay Quintero, Colombian Ambassador on behalf of the Pacific Alliance Embassy made up of Colombia, Mexico, Peru and Chile, said the launch of the book was an opportunity for the alliance to work hand-in hand with AfCFTA.
She said they were forming an internal integration and that would be extended to Ghana and AfCFTA in general adding “we want to go closer to Africa.”
Mr Bernard Afreh, Lead Consultant for GITFiC said the launch of the AfCFTA and the book would enhance trade and economies of Africa in succeeding yeaars and improve the lives of over 1.5 billion people.
He appealed to financial institutions and Commercial and Trade communities to make good use of the literature contained in the book.
Other speakers at the programme included Mr Tsonam Akpeloo, Greater Accra Regional Chairman of Association of Ghana Industries, Mr Joe Ghartey, Former Member of Parliament for Essikao-Ketan in the Western Region, and Ambassador Albert Muchanga.
Over 6000 copies of the book which has a street cover price of GHS 100 were sold at the launch.
To actualize the dreams of African Continental Free Trade Area (AfCFTA) and keep it afloat, the Ghana International Trade and Finance Conference (GITFiC) has taken a step further to launch a handbook on its activities.
The book; ‘Actualising the African Economic Vision; A practical handbook on AfCFTA’, which was launched at the Pacific Alliance Embassy in Accra received high patronage and would serve as the guideline for African leaders, the Academia, Trade and Finance community and all other participants of the AfCFTA.
In his welcome address, Mr Selasi Koffi Ackom, Chief Executive Officer of GITFiC said it took a great deal of work with of consultations, in-depth analysis, and references to come out with the final product.
“This journey began for us when we took the 3rd conference to the Headquarters of the African Union Addis Ababa in 2019 and succeeded in getting a number of stakeholders from the four corners of the continent to the 3rd conference, including; Finance Ministers, UNECA, Trade & Development Bank in Kenya. ECOWAS Bank in Lome, Afrexim Bank in Egypt, Trade Ministers, Finance and Trade Experts, Agric, Aviation et al”.
He said in 2020, they brought Chief Trade Negotiators, Deans of Premier Universities and Senior Media men and women from Africa back to Accra to advance the conversation on the AfCFTA, when Accra was officially declared the Commercial Capital.
“Rightly so because Accra hosts the AfCFTA secretariat and has a rich history of both colonial and present, cross border trade emergence and also as the first country in Africa, south of the Sahara to gain independence.
He said in 2021 they brought monetary and financial magnets from Central Banks in Africa to major stakeholders to discuss the Pan African Payment and Settlement System and its regulatory antecedents, where President Akufo-Addo gave the Keynote address through Vice President Mahamadu Bawumia.
He said it was revealed in sections of the survey report that literature on the AfCFTA were missing and despite the gross interest in the subject matter by the public, almost nothing concrete was there to read more so, in a simplified form.
Mr Ackom said the book was inspired by all Heads of State on the African Continent and the advent of the AfCFTA had received substantial interest and set forth a renewed sense of optimism and conviction that seeks to propel Africa into the league of global trade powerhouse.
He said the book was expected to reach every educational complex on the continent through the help of State Agencies, Continental Institutions with requisite funding and Corporate Africa at large.
“This book has been devoid of large leaflets and content. The main aim here is to encourage reading and attract same. The book comprises 10 chapters however; these 10 chapters give a complete understanding of the AfCFTA and its functional implementation structures and practically expose the reader to the opportunities within the AfCFTA.
“The book has diagrams, info-graphics and photos to spice reading and give a pictorial meaning to the context and content and is currently in two languages; English and French and the African Union has recommended for our immediate attention to have the book translated in all recognized languages by the Union in a message sent to us on September 7th, 2022. These languages include; Arabic, Kiswahili, Portuguese and Spanish.”
He said plans were afoot to translate it into Spanish, Arabic and Portuguese.
He commended Ambassador Albert Muchanga, Mr. Nyame-Baafi, Mr. Bernard Afreh, Mr Tsornam Akpeloo and several other Chief Trade Negotiators who contributed to the practical book in diverse ways.
Madam Claudia Turbay Quintero, Colombian Ambassador on behalf of the Pacific Alliance Embassy made up of Colombia, Mexico, Peru and Chile, said the launch of the book was an opportunity for the alliance to work hand-in hand with AfCFTA.
She said they were forming an internal integration and that would be extended to Ghana and AfCFTA in general adding “we want to go closer to Africa.”
Mr Bernard Afreh, Lead Consultant for GITFiC said the launch of the AfCFTA and the book would enhance trade and economies of Africa in succeeding yeaars and improve the lives of over 1.5 billion people.
He appealed to financial institutions and Commercial and Trade communities to make good use of the literature contained in the book.
Other speakers at the programme included Mr Tsonam Akpeloo, Greater Accra Regional Chairman of Association of Ghana Industries, Mr Joe Ghartey, Former Member of Parliament for Essikao-Ketan in the Western Region, and Ambassador Albert Muchanga.
Over 6000 copies of the book which has a street cover price of GHS 100 were sold at the launch.
The Guided Trade Initiative, which will test all the AfCFTA negotiations, papers, policies, and procedures that have been agreed upon thus far, will be launched by seven AfCFTA party nations.
These nations include Tanzania, Kenya, Rwanda, Tanzania, Ghana, Egypt, and Mauritius.
Dode Seidu, a trade consultant and Afcfta expert, discussed the Eye on Port program. He said that the program will begin on October 7 and that countries are actively preparing their unique private sectors for active trading.
“I’m aware that in the background the respective counties have been having discussions to identify specific companies, specific goods and specific corridors that can trade bilaterally in an effort to test the process.”
He said Ghana for example has gone a step ahead to establish a National AfCFTA coordination office, readied its customs in terms of training and capacity, among other efforts.
He opined that the pilot program is timely and opportune for significant trade to actually commence under the free trade agreement while revealing lessons the wider continent can learn from.
He emphasized that authorities are only looking to facilitate the trade in goods that qualify under the acceptable rules of origin.
Mr. Dode Seidu said the Guided Trade Initiative is “the newest signal that African ministers of trade are really committed to see trade come to past”.
Taking his turn on the subject, AfCFTA Strategist and Executive Director of the AfCFTA Policy Network (APN) Group, Louis Yaw Afful expressed that trade efforts by party states collectively have been underwhelming culminating in the low state of trading under the AfCFTA arrangement.
“Everybody is dragging their feet. One country will say its customs management and administration is not ready. Some will say, they haven’t gazetted their tariffs.”
He said, due to the lacklustre approach some party states had taken, the AfCFTA Secretariat felt a need to inject some impetus for the trade leading to the Guided Trade Initiative.
He said like most new international protocols, there’s the need for certain “anchor countries” to take the bold step of leadership in order to advance common objectives.
He stated that he would have been more impressed if bigger players like Nigeria and South Africa had shown more enthusiasm for AfCFTA.
The Executive Director of APN Network said it is still not a great look for AfCFTA, when in 2022, 7 countries out of the lot appear to be ready for the trade.
The AfCFTA experts, however, jointly called on the private sector to continue to be diligent in finding new markets, participate in trade fairs and establish new contacts while waiting for opportunity to actually trade everywhere within the continent.
Despite growing dissatisfaction over the seemingly inactive trading under the AfCFTA, the Guided Trade Initiative which has been introduced is expected to bring some change.
Seven party states under the AfCFTA will begin the Guided Trade Initiative to test all the negotiations, documents, policies and procedures that have been agreed on so far as the Africa Continental Free Trade Agreement is concerned.
The countries include Cameroon, Ghana, Egypt Tanzania, Kenya, Rwanda and Mauritius.
Speaking on the Eye on Port program, Trade Consultant and Afcfta expert, Dode Seidu stated the program will kick-start on October 7 and countries are currently readying their individual private sectors for active trading.
“I’m aware that in the background the respective counties have been having discussions to identify specific companies, specific goods and specific corridors that can trade bilaterally in an effort to test the process.”
He revealed that these 7 countries are those who have submitted their schedule of tariff concessions and have demonstrated advanced processes on the grounds rendering these countries relatively more prepared to trade under AfCFTA.
He said Ghana for example has gone a step ahead to establish a National AfCFTA coordination office, readied its customs in terms of training and capacity, among other efforts.
He opined that the pilot program is timely and opportune for significant trade to actually commence under the free trade agreement while revealing lessons the wider continent can learn from.
He emphasized that authorities are only looking to facilitate the trade in goods that qualify under the acceptable rules of origin.
Mr. Dode Seidu said the Guided Trade Initiative is “the newest signal that African ministers of trade are really committed to see trade come to past”.
Taking his turn on the subject, AfCFTA Strategist and Executive Director of the AfCFTA Policy Network (APN) Group, Louis Yaw Afful expressed that trade efforts by party states collectively have been underwhelming culminating in the low state of trading under the AfCFTA arrangement.
“Everybody is dragging their feet. One country will say its customs management and administration is not ready. Some will say, they haven’t gazetted their tariffs.”
He said, due to the lacklustre approach some party states had taken, the AfCFTA Secretariat felt a need to inject some impetus for the trade leading to the Guided Trade Initiative.
He said like most new international protocols, there’s the need for certain “anchor countries” to take the bold step of leadership in order to advance common objectives.
He stated that he would have been more impressed if bigger players like Nigeria and South Africa had shown more enthusiasm for AfCFTA.
The Executive Director of APN Network said it is still not a great look for AfCFTA, when in 2022, 7 countries out of the lot appear to be ready for the trade.
The AfCFTA experts, however, jointly called on the private sector to continue to be diligent in finding new markets, participate in trade fairs and establish new contacts while waiting for opportunity to actually trade everywhere within the continent.
“When you have a continent with 1.3 trillion people, that is constructing a single market, if you don’t wake up to it, it will be too late, and you can’t blame China when it happens,” Otchere-Darko added.
Therefore, I want to tell Americans that Africa offers potential.
“We are building a new Africa and that new Africa is a single market, Africa. Potentially the largest single market in the World. We are going to have a customs union, some may think that it’s not possible but it’s possible. In fact, the first customs union in the world happened in Africa.”
The time is now
Addressing an insightful trade and round table discussion on US-Ghana investment opportunities, he said the time to invest in Ghana is now until the free trade area minimizes the level of import from America when full, trade protocols set in.
“It was a South African customs union that was in 1910. So we are going to have a customs union and once we do that it means that we are not going to rely so much on import because the rules of origin is set in. And there will be higher duties for things coming in but within a single market there will be no charges.”
He advised US investors not to lack behind their Chinese counterparts but to take several opportunities in the industry which he said remains a major source of transformation in Ghana.
“So I think what the Chinese are recognising [and I am just using Ghana as an example] is that they are setting industries here [in Ghana]. And perhaps before America wakes up, the single market would have been in full motion and you would have Chinese industries not just depending on imports into Africa but actually setting up in Africa and taking advantage of the single market.”
“Government has identified 100 exporters that we are nurturing, building their capacities, assisting them with funds to be able to take advantage of the market that we have. Ghana with 5 other countries; Rwanda, Egypt, Kenya, Liberia, we have what is called Trade Guided Initiative. These 6 countries have come together to be able to get the network to export products from one country to the other within AfCFTA,” he said.
“Government is also introducing Industrial parks development and special initiatives. These are plans that government has to be able to acquire litigation-free lands whereby SMEs could establish their manufacturing products within these parks so that they can export and take advantage of economic upscale,” he stated.
He noted that government is focused on SME capacity development in the area of profiling, match-making and linkage to the supply chain of large enterprises.
Govt to acquire litigation-free lands for SMEs – Dr Hawkins
Information Minister, Kojo Oppong Nkrumah, has urged investors to consider the huge opportunities that exist in Ghana and direct their investment into the country for higher returns.
He said the stable political atmosphere, coupled with the prevailing peace, made Ghana a better investment destination of choice than its counterparts on the continent.
“As the host of the African Continental Free Trade Area (AfCFTA), Ghana has been placed in pole position to lead Africa’s economic and financial renaissance.
“This means that when you come to do business in Ghana, you are only opening your own door to access the entire African continent. We look forward to seeing you soon,” Mr Nkrumah added.
The minister was addressing the Diaspora investor community at the end of the six-day Ghana-Canada Investment Summit (GCIS) organised by the Ghana Investment Promotion Centre (GIPC) in Toronto, Canada.
Investment haven
Mr Nkrumah, who is also the Member of Parliament for Ofoase/Ayirebi, described Ghana as a fertile ground for investment where businesses thrived due to its stable economic atmosphere, and, therefore, urged prospective investors, especially those from Canada, to consider Ghana as the gateway to a wider African market.
He said Ghana had a variety of investment vehicles available for every investor class which offered higher returns than other African countries, and cited the high returns in investment on equity markets and the high yields of Government of Ghana bonds as examples.
He further called for the support of Ghanaians in the Diaspora, saying they had a crucial role to play towards the growth and development of the country.
Summit
The GCIS brought together delegates from the international investor community, especially from Canada, venture capitalists, private equity fund managers, among others.
The participants discussed and explored viable investment opportunities within various sectors of the Ghanaian economy.
There were also collaborations with the Diaspora, Canadian investors and local entrepreneurs and the creation of awareness of the potential of Diaspora Direct Investment and the need to increase trade between Ghana and Canada.
Present at the summit were some state officials, including the Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botcwhey; the Minister of Communications and Digitalisation, Ursula Owusu-Ekuful; the Minister of Tourism and Culture, Dr Mohammed Ibrahim Awal; the Chief Executive Officer of the GIPC, Yofi Grant, among others.
Commissioner-General of Ghana Revenue Authority, Rev Dr. Ammishaddai Owusu-Amoah has emphasized on the need for deepening regional cooperation between tax authorities of member states of the African Continental Free Trade Area (AfCFTA) agreement, as part of efforts to ensure its success.
This, he believes will be critical in preventing tax evasion and aid in detecting various financial and customs related crimes.
Speaking at the opening ceremony 7th Annual congress of the African Tax Administration Forum in Accra, Rev Dr. Ammishaddai Owusu-Amoah also said the implementation of the AfCFTA will require the use of technical skills, enhanced processes and the use of technology and the cooperation of competent authorities such as the Ministry of Trade, Customs authorities, tax authorities, and other law enforcement agencies.
“the need for regional cooperation between tax authorities is now more important than ever. Tax and customs authorities play a key role in the collection of information including beneficial ownership information and financial information, as well as the use of tax identifiers that link individuals to the companies in which they are shareholders.
As border control, customs authorities are key in detecting and preventing smuggling, counterfeit goods and overall illicit trade, but in a future single market, one national authority cannot effectively execute this duty on its own. Cooperation between tax authorities, in particular, will be extremely important in preventing tax evasion and avoidance schemes,†he said.
A deputy Minister of Finance, Abena Osei-Asare, delivering the keynote on behalf of the Minister of Finance, Ken Ofori-Atta stated that it is critical for member-states under the African Continental Free Trade Area to resort to innovative revenue enhancing measures to boost customs revenue and domestic tax revenue mobilization.
She noted that this will help mitigate the possibility of the slow pace in revenue growth resulting from the implementation of the AfCFTA in the initial stages.
“With regards to the tax and revenue implications of the AfCFTA, it is likely that customs revenue will not see an upward movement in the short-term; however, this impact would be marginal compared to the share of intra-African exports as a percentage to total African exports, which is estimated around 21 percent in 2021. This figure remains relatively low compared to levels in Europe (69 percent), Asia (59 percent) and North America (31 percent).
In the medium term, AfCFTA is expected to improve trade, and therefore, would impact positively on GDP. To boost customs revenue mobilization in the short-term, African countries could resort to other revenue enhancing measures that target domestic taxes,†she noted.
The African Continental Free Trade Agreement (AfCTA) is an initiative by African States focused to help develop Africa.
AfCFTA is possibly the largest trade block by member-states, being a single market covering the entire African continent with a total population of 1.3 billion and a combined gross domestic product (GDP) of almost US$ 3 trillion.
The Government of Ghana, through the Ministries of Communicationsand Digitalisation, and Trade and Industries, officially launched the AfCFTA Hub earlier today.
The purpose of the AfCFTA Hub is to ensure that, in our quest to export our ICT goods and services across Africa and beyond, Ghanaian businesses have a trusted profile outside of Ghana, as well as to strengthen the industry and regulators to combat fraudsters who will also want to use AfCFTA to regionalize their nefarious activities.
We are announcing directives to accelerate the adoption of the AfCFTA Number and AfCFTACommon Transaction ID frameworks in Ghana for these and other reasons.
Beginning immediately, all individuals and businesses engaged in the courier, postal, delivery, logistics, ride-sharing, e-commerce, digital trading, or any other business of that nature must obtain a free AfCFTA Number at www.afcfta.app, the AfCFTA Hub Gateway.
We expect online service providers such as Uber, Glovo, Bolt, Jumia, Tonaton, Yango, Amazon, and others to ensure that all businesses registered on their platforms secure their AfCFTA Number and begin integrating their transaction processing systems with the AfCFTA Hub as soon as possible.
If done correctly, all customers of such businesses and services will be able to verify and validate their regulatory and compliance status, increasing trust in the marketplace, increasing uptake of digital services, suppressing fraud, and increasing the efficiency of doing business in Ghana and elsewhere.
The writer is the Minister of Communication and Digitalisation
Source: Myjoyonline.com
DISCLAIMER: Independentghana.com will not be liable for any inaccuracies contained in this article. The views expressed in the article are solely those of the author(s) and do not reflect those of The Independent Ghana
He said members of GNTDA could also tap into the African Growth and Opportunities Act(AGOA) initiative and penetrate into the United States of America (USA) clothing market to make more profit from their profession.
Mr Adu-Gyan was addressing the first annual conference of the Bono East chapter of the association at Nkoranza, which was held on the theme “Clothing Africa and Beyond, the role of the Bono East Region”.
More than 100 tailors and dressmakers attended the conference to deliberate on how they can improve on their products to enable them to penetrate into the foreign market.
Technology
Mr Adu-Gyan urged them to also explore opportunities offered by technology to improve their business so that they can compete with their counterparts all over the world.
“You can learn the latest fashion designs from the Internet. You can also sell your beautifully sewn cloths on the Internet,” he advised.
He observed that social media platforms such as WhatsApp, Facebook, Youtube, among others, were available for tailors and dressmakers to enable their products to reach out to a large number of potential customers.
Mr Adu-Gyan said it was unfortunate that Ghana spent over $182 million to import used clothing in the year 2020 alone, which made it the largest importer of used clothing in the world.
He gave an assurance that the government was committed to supporting the private sector to make it the engine of growth and create jobs for the youth.
He observed that the introduction of the “Friday Wear” concept had helped sustain the dressmaking and tailoring industry.
Friday Wear
The Bono East Chairman of GNTDA, Samuel Asante Addo, commended the government for various initiatives that aim to protect the industry.
He explained that even though the Friday Wear concept had helped to boost the work of members of the association, there was the need for two more days to be added to the initiative.
He also appealed to the government to extend the free senior high school policy to apprentices to entice more youth into apprenticeship of the various vocations.
Present at the function was the Municipal Chief Executive of Nkoranza South, Daniel Yaw Owiredu.
The AfCFTA Secretary-General, Wamkele Mene, has expressed his condolences to the victims of the Bogoso explosion.
According to him, he learned with great sadness about the loss of life and the destruction which occurred on Thursday in a devastating explosion in Appiate town, after a vehicle transporting explosives collided with a motorcycle.
“The Secretary-General sends his heartfelt condolences to the families of those who lost their loved ones and to the Government of the Republic of Ghana,†a statement from the AfCFTA Secretariat read.
Mr. Wamkele Mene intimated that “as fellow Africans, we share the pain felt by the people of Ghana as a result of this tragic accidentâ€.
“We send our thoughts and prayers to the families of the bereaved,†he noted.
So far President Akufo-Addo, Vice President Mahamudu Bawumia, ex-President John Mahama have also commiserated with the families of those who lost their lives.
Several Ghanaians have also taken to social media platforms with the hashtag Bogoso (#Bogoso) to express their sympathies to the victims of the disaster.
Thursday, January 20, 2022, has been described as a sad day for the country and Ghanaians especially for the people of Appiate in Bogoso in the Western Region following an accident involving a truck conveying explosive material for a mining company, a motorcycle, and a third vehicle close to an electricity transformer, leading to the explosion.
The African Continental Free Trade Area (AfCFTA) has laid a foundation for the establishment, in the future, of a Continental Common Market.
Mr. Wamkele Mene, the General Secretary, AfCFTA Secretariat, said the main objectives of the AfCFTA were to create a single market for goods and services, facilitate the movement of persons, and promote industrial development and sustainable and inclusive socio-economic growth.
He said after an almost five-year period of negotiations, which were started in February 2016, the Agreement was signed on 21 March 2018 and entered into force on May 30, 2019.
Mr. Mene said this in his address on the occasion of AfCFTA Policy Network (APN) Summit on the State of AfCFTA Trading and Africa Products Awards.
He said based on progress made, the AU Summit in December 2020 provided the legal basis for the operationalization and commencement of preferential trading under the AfCFTA on 1 January 2021.
He said the processes to negotiate, ratify and operationalize the AfCFTA had progressed at fast speed-not just by African standards, but by world standards for trade agreements.
“In a matter of one year, from 2018 to 2019, the Agreement was signed by 54 of 55 African Union Member States, ratified by 34 countries as at end- 2020, with trading commencing on 1 January 2021,” Mr. Mene said.
“Thus, from 1 January this year, it became possible for State Parties whose customs procedures are ready to trade under the AfCFTA.”
He said in this regard, some trade had already taken place.
“We all recall with pride the exporting of products via air and sea freights by Kasapreko Company Limited, a manufacturer of alcoholic products and Ghandour Cosmetics Limited, in early January 2021, marking the start of trading under the AfCFTA preferences,” he stated.
“Notwithstanding the challenging circumstances, exacerbated by the impact of the COVID-19 pandemic, the results achieved in the implementation of the Agreement and execution of work programme of the AfCFTA Secretariat are a source of satisfaction.”
Mr. Mene said currently, 37 countries (almost 69 percent of Member States) had deposited their instruments of ratification at the African Union (AU) Commission, with few more that had completed the ratification process also about to do so.
He paid tribute to the AU Assembly of Heads of State and Government for their leadership and unflinching political commitment that has brought them this far.
“I also want to put on record the support extended graciously to the Secretariat by our host country, Ghana,” he said.
Adding that all their development partners had also contributed to the progress achieved so far.
“Thus, while the modest success achieved is worth celebrating, there is still much more to do,” he said.
Mr. Mene said there remained outstanding negotiations that must be finalized for effective trading under the AfCFTA preferential trading regime.
He said negotiations were still underway across various aspects of the AfCFTA, saying the AfCFTA was being negotiated over multiple phases.
He said Phase I negotiations produced the AfCFTA Agreement, Protocol on Trade in Goods, Protocol on Trade in Services, and Protocol on Rules and Procedures on the Settlement of Disputes and their annexes and appendices; adding that the legal instruments entered into force on 30 May 2020.
“However, negotiations on some issues of Phase I are ongoing, namely, rules of origin, schedules of tariff concessions, and schedules of specific commitments on the five priority service sectors (business services; communications; finance; tourism and transport).”
He said these outstanding issues were expected to be concluded by June 2021.
Phase II negotiations will cover IPRs, investment, and competition policy, while Phase III covers E-Commerce.
Mr. Mene informed that the AU Assembly had set 31 December 2021 as the deadline for the conclusion of Phase II and III negotiations.
He said the negotiations were supported by the AfCFTA Tariff Negotiations online portal which facilitated the negotiations on tariff liberalization between State Parties, Customs Unions, or Regional Groupings under the AfCFTA.
The Second Vice President of Ghana National Chamber of Commerce and Industry(GNCCI), Mr Abass Miezah, has tasked Ghanaians to embrace the African Continental Free Trade Area (AfCFTA) as it has numerous benefits.
He said many African countries have signed on to the agreement which encouraged them to trade among themselves also hinting that population of Africa was around 1.3 billion with a total market value of 3.4 trillion dollars.
“If any business entity in Ghana can process cocoa they do not necessarily need to transport same to China, Europe and America, but it can be sent to Morocco, Liberia and Kenya. In Rwanda tea can also be sent to Tunisia or Ghana”
He said if Africans take up the golden opportunity firmly it would help develop the various nations. Mr Miezah said once the country decided to join this trade, they need to process all their raw materials into consumable product.
“We have many agricultural raw materials and if we cannot feed ourselves definitely we are going to import and this will affect our Gross Domestic Product, foreign reserves and others”, the Vice president said.
He noted that educating the youth to gain an in depth knowledge in technology could create employment, adding that, the President had done well by trying to make education accessible to every Ghanaian.
Mr Miezah said “other nations should emulate this because it is only education that can raise people from poverty. China has lifted more than 800 million people out of poverty so it is imperative that African nations look at their education”
He said the government should provide infrastructure, improve pension scheme and health system because all these build the society. The Vice President called on the government and the private sector to support the all-important initiative.
Trade and Industry Minister, Alan Kyerematen, has commended Ibrahim Mahama, Founder of Dzata Cement Limited, for investing heavily in the cement industry.
The over US$100 million investment is located on a 10-acre land near the Tema Port.
Mr Kyerematen made the commendation when he paid a working visit to the plant of Dzata Cement Limited on Monday.
The visit was to enable him to have first-hand information on the cement-producing plant and the progress of work so far.
The technology deployed for producing the cement is from Germany and was developed by Haver and Boecker.
The cement grade produced by the plant is ordinary Portland cement, which is imported for the plant and then bagged.
The plant, which is wholly managed by Ghanaians, can produce an average of 120 bags per minute from the two production lines.
The Minister said the industry had been solely dominated by global foreign companies and that Dzata Cement Limited was the first wholly Ghanaian investment in the cement industry and that alone was remarkable.
He said the government very much appreciated the importance of foreign investment capital but there was no evidence of any country anywhere in the world that had been able to achieve quality growth without supporting their indigenous entrepreneurs.
“That is why l think this particular investment should pave the way for investments in industries which otherwise have been dominated only by foreign companies,†he added.
Mr. Kyerematen also lauded Mr. Mahama for the investment in state-of-the-art technology, which also was important as a developing country.
He said as a safeguard measure to protect the domestic cement industry against import surges of Portland cement, the Export and Import (Restrictions on Importation of Portland Cement) Regulations, 2016 (L.I 2240) was passed.
The regulation requires every commercial importation of Portland cement from outside the ECOWAS region to be covered by permit or license from the Ministry.
Section (4.0) (a-d) of the Second Schedule of LI 2240 provides that an applicant for a permit to import Portland cement for re-bagging must provide evidence of elaborate plans to undertake Cement production in Ghana, including the state of the factory being constructed.
The Minister said the facility was going to create high skills jobs for Ghanaians and contribute to job creation.
He encouraged the management of the Company to as much as possible use local raw materials to create sustainable job opportunities for Ghanaians.
He urged the management to take advantage of opportunities the ECOWAS and AfCFTA markets offered to develop and grow the company while contributing to the Ghanaian economy.
Nana Philip Archer, Managing Director of Dzata Cement Limited, said the working environment was an eco-friendly one though it was a cement production factory.
He said phase I was a two-line re-bagging installed capacity of 1.2 million tonnes per annum using jumbo bags of imported bulk cement.
He said the production of Silos could hold 40, 000 metric tonnes of cement.
Phase II will have a plant capacity of 2.4 million tonnes per annum using imported bulk Portland cement, while Phase III will involve actual manufacturing and bagging, using two vertical grinding mills of 3 million tones capacity each.
The Managing Director expressed gratitude to the Minister for the visit, even though they were yet to commence full operations.
The commencement of production by Dzata Cement will make it the 2nd bagging plant and the 12th plant in the industry and provide consumers with the additional choice of cement on the market.
Currently, there are eleven cement plants in production in the industry, excluding Dzata Cement.
They are nine grinding plants, one integrated plant (Savanah Diamonds), and one bagging plant (Dangote).
Alan Kyerematen, Minister of Trade and Industry says the successful implementation of the African Continental Free Trade Area (AfCFTA) requires national coordination between actors at all levels.
He said it would also require the translation of the strong political will demonstrated by President Nana Addo Dankwa Akufo-Addo in support of the AfCFTA into concrete actions by officials at all levels including Public Organizations, Private Sectors Associations, Civil Society Organizations, and the Media.
Mr Kyerematen was speaking at the inauguration of 36 Council Members of the Ghana National Chamber of Commerce and Industry (GNCCI) in a speech read for him by Mr K. Nyame-Baafi, the Technical Advisor to the Minister in Accra, on Wednesday.
Justice Sophia Bernasko Essah, an Appeal Court Judge, administered the Oath of Office and secrecy to members of the Council.
The Council Members will provide the needed support and guidance, through their technical expertise and wealth of social capital, to the activities of the Chamber.
The Minister believed that the private sector would spearhead the economic transformation of the country by taking full advantage of the African Single Continental Market.
He said, without doubt, AfCFTA could be considered as the game-changer for the post-COVID economic recovery and transformation of Ghana, “if we as a country can harness the numerous benefits of the AfCFTA.â€
He said the AfCFTA would boost Ghanaian exports, stimulate investments and innovation, foster structural transformation, improve food security, enhance economic growth, and export diversification, and above all, provide fresh impetus and dynamism to the economic integration of Ghana into the African market.
“There are many benefits that Ghana will derive from effective implementation of the AfCFTA, including better harmonisation and coordination of trade between Ghana and other African countries,†he added.
Mr Kyerematen said to harness the benefits of AfCFTA, the government complemented the ongoing Industrial Transformation Agenda by launching the National Export Development Strategy in 2020 to increase non-traditional export revenue to US$25.3 billion by 2029.
He said the Strategy prioritises interventions under the following three key pillars of expanding and diversifying the supply base for value-added exports and services by improving the business regulatory environment for exports, expanding human capital for industrial export development and marketing.
“In addition, the government has developed a National AfCFTA Policy Framework and Implementation Plan for Boosting Intra-African Trade (BIAT),†he said. The Minister said the objectives of the policy framework were to consolidate and grow existing markets on the continent and to identify new markets for Ghanaian Goods and services on the continent.
It is also to identify and promote new products with export potential for the African Market and stimulation of greater demand for Ghanaian products and services on the continent.
He said the strategy would provide timely and accurate information on market trends for Ghanaian businesses and support the development of innovative financial products for intra continental trade and intensive pursuit of value addition for Ghanaian goods.
Mr Clement Osei-Amoako, the President of GNCCI said at the 44th Annual General Meeting of the Chamber held on 21st October 2020, all the standing committees and council were dissolved and new national officers elected to champion the activities of the Chamber to greater heights.
He said in line with the constitution of the Chamber and the Legislative Instrument (L. I. 611), a new Council had been duly constituted to govern and support the activities of the Chamber.
The Council comprises President, two Vice-Presidents, the National Treasurer, One representative selected by each regional Chamber for every 40 fully paid-up members or part thereof in such regional Chamber.
The President said the Chamber would continue to empower the business community through its cutting-edge programmes and activities aimed at equipping the private sector to develop the needed shock absorbers and tenacity amid the ravaging pandemic.
He said the Chamber was excited that the journey to opening up new market access opportunities to drive the needed economic growth and transformation of the African continent had begun.
Dr Douglas Akuamoah Boateng, Chairman of CCT Group, who spoke on behalf of the Council, expressed gratitude to the leadership of the Chamber for their nomination and inauguration.
He assured the Chamber of their readiness to help solve challenges in the sector.
Vice President Dr Mahamudu Bawumia has held talks with Mr Wamkele Keabetswe Mene, Secretary-General, African Continental Free Trade Area (AfCFTA), at the Jubilee House, Accra.
The meeting, among other things, deliberated on the unique opportunities the AfCFTA offers the African Continent to enhance its cohesion and development.
Vice President Bawumia said, “With AfCFTA, we are better positioned to leverage digital technology for Pan-African Payment and Settlement Systems.
“The advantages of such transcontinental payment platforms and interoperability cannot be overemphasised and I look forward to that within the shortest time”.
The AfCFTA took off smoothly on January 1, 2021 after years of uncertainties and political consultations.
The Continental free trade bloc intends to unite Africa’s 1.3 billion population, with an estimated $3.4 trillion economic strength.
It is the largest trade bloc since the establishment of the World Trade Organization (WTO).
Ernest Bediako Sampong, the Chief Executive of Ernest Chemist, says the implementation of the African Continental Free Trade Agreement (AfCFTA) will create more employment opportunities in the pharmaceutical industry.
He said new markets would help manufacturers increase employment due to the high demand for products.
Mr Sampong, speaking at the Ghana National Chamber of Commerce Industry (GNCCI) virtual sensitisation seminar on AfCFTA in Accra, said AfCFTA was a laudable idea but, “I do not think it is going to be easy.â€
He said it was not going to be easy because of the attitude of Africans towards products that were manufactured on the continent, especially Ghana.
Mr Sarpong said the industry was going to experience the transfer of technology with international pharmaceutical companies setting up plants and factories in Africa and creating employment opportunities.
The event was organised by GNCCI in partnership with Joy Business and the Ghana Shippers Authority on the theme: “AfCFTA: Adopting the right business strategies to fully benefit.â€
It was aimed at sensitizing small scale businesses on how they could strategise to benefit from the Agreement.
He said there would be opportunities for some multinationals to also collaborate with existing companies to enable them export to the sub-region.
Mr Sarpong said there was going to be a possibility of medicine security and a boost in industrial investment and called for workable policies and a free will for the policies to be implemented, adding that government should try and harmonise policies and systems in doing business in Ghana.
The CEO urged government to support the private sector to develop their businesses to contribute to the development of the economy.
â€We urge government to waive taxes on equipment used for manufacturing.â€
Mr Anthony Nyame Baafi, a Technical Advisor at the Ministry of Trade and Industry, said government through the Ministry had set up institutional structures to support the implementation of the Agreement.
“We have the inter-ministerial, the national AfCFTA Secretariat to provide information to everybody, who wants access any information,†he said.
He said arrangements were in place to ensure the Member States take advantage of the Agreement, stressing that the government needed the private sector to partake in the implementation of the Agreement and if there were any challenges, the Ministry and the Ghana Export Promotion Authority were ready to assist.
Ms Benonita Bismarck, the Chief Executive Officer of the Ghana Shippers Authority, said it was an opportunity to partner with the GNCCI to educate the private sector on how to maximise the benefits of AfCFTA.
“It is all about education and sensitisation, so at the end of it, we will go across the nation to ensure that our stakeholders fully understand and take advantage of this all-important concept,†she said.
The African Trade Policy Centre (ATPC) of the Economic Commission for Africa (ECA) on Wednesday outlined plans to school French and Arabic-speaking journalists on the African Continental Free Trade Area (AfCFTA).
The AfCFTA headquarters is based in Accra, Ghana.
About 40 journalists from across the continent and beyond have already are to participate in the virtual training scheduled to take place on February 25, 2021, a statement from ECA and copied to the Ghana News Agency at Tema stated.
As part of its objective, the workshop is intended to sensitize journalists on the current status of the Trade Agreement and to examine how the trade bloc could affect Africa in the future.
The workshop further aims at assessing the impact of the COVID-19 pandemic on the continent and media coverage of the AfCFTA amid the health crisis.
Speakers are from the African Union Commission (AUC), ATPC, ECA Sub-Regional Offices in North, Central, and West Africa, will give an overview of the state of the agreement, its impact on African regions, its implementation through National Strategies, and its gender dimensions.
The AfCFTA agreement, which was entered into force on May 30, 2019, after the treaty, was ratified by 22 countries the minimum number required by the treaty, with 36 countries ratified so far.
“It provides an opportunity for Africa to create the world’s largest free trade area with the potential to unite more than 1.2 billion people in a $2.5 trillion economic bloc and ushers in a new era of development.
It has the potential to generate a range of benefits through supporting trade creation, structural transformation, productive employment, and poverty reduction†the statement said.
“Through the ATPC, the ECA has been working with the AUC and member states of the AU to deepen Africa’s trade integration and effectively implement the agreement through policy advocacy and national strategy development†it informed.
The ECA works with the International Trade Centre (ITC), United Nations Conference on Trade and Development (UNCTAD), and independent trade experts with financial support from the European Union to assist with the implementation of the agreement.
A member of the ICUMS Implementation Team, Joseph Agbaga, has stated that it is unfortunate that the freight-forwarders who play an intermediary role between the businesses and government have not been well educated.
“As at now, they (freight forwarders) are not seeing any move towards giving them any message or education about what they are to do, because of the sensitive position the freight forwarders play,†he said.
Speaking on Eye on Port, he stated that considering the crucial role that freight forwarders play in the clearance chain, it will be proper for them to be well educated on the AfCFTA.
Touching on other issues, he asked that export documents required to facilitate trading under the AFCTA be made public.
Speaking on the same programme, the Secretary-General of the International Chamber of Commerce (ICC), Ghana Emmanuel Doni-Kwame said a digital trading platform called Mansa has been launched to enable businesses to check the backgrounds of those they want to do business with.
He said the ICC Ghana has also created a digital platform to bring together buyers and sellers to start engagements and encourage SMEs to take advantage and register.
The Executive Director of the AfCTFA Policy Network, Louis Yaw Afful commended Ghana for making a good strive by setting up the Local AfCFTA Coordination Office which was part of the recommendations given by the African Ministers of Trade.
He revealed that Egypt has devoted an amount of 20billion dollars to the AfCFTA project.
Emmanuel Doni-Kwame also revealed that by July 2021 all the aspects of the continental trading should be running effectively.
He said there are some digital platforms that have been rolled out to ensure that payments are made electronically without challenges.
The ICC Ghana Secretary-General recommended that all regulatory agencies should be allowed to perform their functions effectively before the Certificate of Origin is issued for any product.
The former GIFF President Joseph Agbaga also called for the simplification of the rule of origin for businesses.
The most important initiative introduced by the African Union (AU) is the African Continental Free Trade Area (AfCFTA), Chairman of the Economic Community of West African States (ECOWAS), President Nana Addo Dankwa Akufo-Addo, has said.
In January 2021, the trading phase under the AfCFTA which was signed by 54 African countries commenced.
The general objectives of the agreement include, among other things, creating a single market, deepening the economic integration of the continent; establishing a liberalised market through multiple rounds of negotiations; aiding the movement of capital and people, facilitating investment move towards the establishment of a future continental customs union.
Speaking during the Virtual Summit 58th Ordinary Session of the ECOWAS Authority of Heads of State and Government, on Saturday, 23rd January 2021, Mr. Akufo-Addo said “We can best attain this objective by strengthening our regional integration. Thus, the entry into force of the African Continental Free Trade Area (AfCFTA), which began trading on 1st January, presents us with additional opportunities to reach our objective.
“The AfCFTA, as we all know, is, arguably, the most important initiative launched by the African Union. We all have a duty to ensure its success.
“I remain confident that, as is customary, the quality of our discussions and the decisions we take together will be commensurate with the ambitions we have for our region.â€
He further called on ECOWAS member countries to engage on the growing menace to the maritime security of our region.
Mr. Akufo-Addo said acts of piracy and maritime destabilization are on rapid increase in the Gulf of Guinea, illustrated by the data, which indicate a forty percent (40%) rise in pirate activities in the Gulf in 2020 over 2019.
“This calls for a strong regional response,†he said during the Virtual Summit 58th Ordinary Session of the ECOWAS Authority of Heads of State and Government, On Saturday, 23rd January 2021.
He further stated that “Ghana, on its part, has decided to pledge fifty million dollars ($50 million) over the five (5) year period, of which ten million dollars ($10 million) is destined for the Fund, and forty million dollars ($40 million) for the domestic empowerment of our border security against potential terrorist incursions. Half of the ten million dollars ($10 million), i.e., five million dollars ($5 million), has been paid by Ghana into the ESRF account, of which confirmation transfer instructions for this payment has been received.
“The remaining one hundred million dollars ($100 million), which is to be voluntarily paid by the other five (5) countries and other sources, will complete the establishment of the entire Fund. We need to do this as quickly as possible.
“We also need to engage on the growing menace to the maritime security of our region. Acts of piracy and maritime destabilization are on rapid increase in the Gulf of Guinea, illustrated by the data, which indicate a forty percent (40%) rise in pirate activities in the Gulf in 2020 over 2019. This calls for a strong regional response.
“On the critical issue of the single currency for the community, we have agreed on a revised convergence policy, about which a report will be presented to us at this meeting. I am of the view that the difficulties involved in meeting the convergence criteria should not stand in the way of the rapid establishment of a payments and settlement system in ECOWAS, which will enable a rapid expansion of trade and investment in the Community. We will receive, at this Summit, a report on progress on this matter.
“Excellencies, achieving strong economic growth, built on resilient economies, is a challenge that we must accept and realise. We must remain focused on the implementation of our programmes and projects in all areas to ensure the well-being of our peoples.
Goods exports by third-party non-African countries to African countries will not enjoy preferential treatments stipulated under the African Continental Free Trade Area (AfCFTA) trade pact.
This is according to the Secretary-General of the AfCFTA Secretariat, Wamkele Mene.
Addressing the issue of transshipment during the operation of AfCFTA, Mr Mene noted that although goods from non-African countries are welcomed into the continent, such goods or imports will not enjoy the incentives that bind the trade agreement between AfCFTA members.
“We are not saying there should be no goods from other countries, what we are saying is that goods that should enjoy the AfCFTA preferential treatment should be goods that are legitimately entitled to the AfCFTA preferential treatment,†he said.
“There will still be goods coming in from other parts of the world, but they will not be enjoying the preferential treatment that we have agreed to extend to ourselves as members of AfCFTA,†he added.
Speaking further, Mr Mene disclosed that no provision or protocol has yet been made to minimize the importation of goods from non-African countries during the implementation of AfCFTA.
He however believes that, despite the absence of such provision, a strong collaboration between Customs Officials of member countries will check goods transshipment on the continent during the operation of AfCFTA.
“This will depend on our robust application and implementation of our rules of origin regime and other necessary protocols. We will work with our Customs Officials to improve their capacity to check transshipment,†he stated.
Trading of goods between member countries per the rules of AfCFTA should attract zero duties with no limit on the quantity of goods that can be exported or imported between member countries.
Only 958 businesses across the country are said to be aware of the African Continental Free Trade Area (AfCFTA) which is expected to start on January 1, 2021, findings from the second wave of  COVID-19 Business Tracker  Survey has revealed.
This represented 26.2 percent of firms interviewed between August 15 and September 20 this year by the Ghana Statistical Service (GSS) in collaboration with the United Nations Development Programme (UNDP) and the World Bank.
A total of 3,658 from the initial 4,311 firms from the first Business Tracker were re-interviewed to provide critical information to help the government, development partners and other organisations monitor the effects of the pandemic.
The Government Statistician, Prof. Samuel Annim said this on Thursday at a press conference held in Accra.
He said the awareness of AfCFTA was more among the medium and large firms which represented 63.8 and 72.7 respectively while within the small and micro firms only 26.2 and 24.9 per cent were in the know of it.
According to Prof. Annim, though awareness of AfCFTA was low, 76 per cent of the businesses believed the implementation of it would bring transformation to their businesses.
He said both large and small firms, as well as medium-size firms, believed that reduced cost of credit, increased information on business opportunities and removal of policy and regulatory bottlenecks, digitisation, business advisory services and information on business opportunities would be the support needed to make their firms useful and enable them to sell their goods and service across the continent.
Prof. Annim said the number of firms in Ghana aware of the AfFCTA was worrisome and was unexpected, given that the intended benefits were enormous for businesses and the country at large.
He said the Service had taken steps to intensify the sensitisation of AfFCTA to ensure that businesses and firms in Ghana could leverage and benefits from the returns associated with it.
He also indicated that the findings had been shared with the Ministry of Finance and would be subsequently shared with relevant ministries such as the Ministry of Trade and Industry.
“We expect the firms in Ghana would fully be aware of this intervention and will be educated on the strategies by which they can harness the returns associated with it,†he added.
The first of the regional conferences on the implementation of the Africa Continental Free Trade Area (AfCFTA) Agreement and the National Export Development Strategy will be held from today, November 10 in the Ashanti Regional capital of Kumasi.
Mr Simon Osei-Mensah, the Regional Minister, will open the event at the Golden Tulip Hotel, Adum, with the Nana Dr. Baffour Ossei Hyeaman Brantuo VI, Mawerehene of Asantehene, Otumfuo Osei Tutu II, as the Guest Speaker.
Mr Robert Ahomka-Lindsay, Deputy Minister for Trade and Industry, will give the keynote address on the conference theme: “Empowering Ghanaian Businesses to harness the benefits of the African Continental Free Trade Agreement under the framework of the National Export Development Strategy (NEDS)â€.
The conferences are to sensitise relevant stakeholders from the private and public sectors, especially Ghanaian businesses in the various regions, about export development interventions aimed at empowering the private sector.
A statement issued by the Public Relations Department of the Ghana Export Promotion Authority, and copied to the Ghana News Agency, in Accra, on Monday, said all the 15 regional conferences would be held in November.
This followed the National Conference, it said, held at the Accra International Conference Centre on the 20 and 21 October 2020, which was opened by President Akufo-Addo, with Wamkele Mene, Secretary General of the AfCFTA, as the Special Guest.
The events are being organised by the Ministry of Trade and Industry (MOTI), the Ghana Export Promotion Authority (GEPA) and the National AfCFTA Coordination Office.
The Ministry of Foreign Affairs and Regional Integration, Ghana Standards Authority, Food & Drugs Authority, Ghana Eximbank and the Ghana Revenue Authority Customs, are the supporting institutions, while the Stanbic Bank is the sponsor.
“The regional events are intended to be a lot more interactive with the aim of engaging the private sector to enable them to appreciate existing opportunities within the newly launched National Export Development Strategy, and how they can effectively access opportunities within the AfCFTA,” said the statement.
Representatives from the Exporter Community, Private Business Owners, Senior Public Service Officials, Private Sector Representatives in the Regions, Development Partners and the Media were expected to actively participate in the regional discussions, it said.
“The month of November has been dedicated to these roadshows to ensure that business communities in all 16 regions appreciate the relevance and impact of AfCFTA on their businesses and how the National Export Development Strategy is positioned to empower the private sector access the African market through interventions in export.
“The AfCFTA/NEDS sensitisation train is expected to stop-over in all the other 15 regions, following the National Conference in Accra, as trading under the AfCFTA is scheduled to begin on January 1st, 2021.
“Watch out for when the Regional Conference makes a stop in your region,” the statement said.
The first National Conference on AfCFTA was organised by Government in August 2019, followed by the second in October 2020, where the National Export Development Strategy was launched.
