Address Challenges Impeding AfCFTA

– GUTA President urges AU leaders

Story: Isaac AIDOO, Accra

THE President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has stressed the urgent need to address key challenges militating against the African Continental Free Trade Area (AfCFTA) and adopt strategic measures to maximize its potential.

Speaking in an exclusive interview with The New Finder, he outlined the critical barriers impeding intra-African trade and proposed solutions to unlock the continent’s economic potential.

Dr. Obeng pointed out that intra-African trade remains alarmingly low, at just 15%, compared to other regions of the world. He attributed this to limited value addition and production capacity across the continent.

“Africa largely consumes finished goods imported from outside the continent rather than adding value to its abundant raw materials. To reverse this trend, we must focus on producing goods locally in abundance, ensuring they are competitive in price and quality,” he stated.

Improving Information Flow and Connectivity

The GUTA President stressed the need for better communication and information sharing among African businesses. He observed that many African traders are more familiar with markets in Asia, Europe, and the Americas than with opportunities within Africa.

“It’s crucial to establish strong communication networks to inform businesses about what is produced across the continent and where opportunities lie. This will encourage trade within Africa and help build stronger economic ties among member states,” he explained.

Addressing Bureaucratic Hurdles

Dr. Obeng also highlighted the bureaucratic challenges hindering the effective implementation of AfCFTA, including the complex rules of origin and tariff systems. He called for the fast-tracking of processes and the removal of barriers that discourage trade.

“The bureaucracy in the free trade area, including rules of origin and tariff systems, must be simplified. Any hurdles that create delays or confusion should be addressed immediately,” he urged.

Way Forward

Dr. Obeng emphasized that for AfCFTA to succeed, African nations must prioritize industrialization, value addition, and effective communication. He believes these steps are essential for transforming Africa into a competitive economic bloc that can reduce its dependence on imports from other continents.

As the implementation of AfCFTA progresses, Dr. Obeng’s remarks underscore the need for policymakers and businesses to collaborate in addressing structural challenges and leveraging the agreement’s full potential to boost trade, industrialization, and economic growth across the continent. The AfCFTA, which aims to create a single market for goods and services, is one of the flagship initiatives of the African Union’s Agenda 2063, envisioned to foster inclusive and sustainable economic development across the continent.