The implementation of the Africa Free Trade Zone has been delayed due to the ongoing coronavirus pandemic, reported Reuters. This means the agreement will not come into effect on July 1, 2020, as earlier planned due to disruptions caused by the coronavirus outbreak.
“It is obviously not possible to commence trade as we had intended on 1 July under the current circumstances,” Wamkele Mene, Secretary-General of the African Continental Free Trade Area, said during a conference call.
Mene did not reveal if a new implementation date has been left, and left the conference call before the question and answer session.
The continental free-trade zone, comprising of 55 nations, is expected to create a $3.4 trillion economic bloc with 1.3 billion people across Africa, making it the world’s largest free-trade zone. It is expected to eliminate or minimalise cross-border tariffs on almost 90% of goods, promote investment, facilitate the movement of capital and people, and led to the establishment of a continent-wide customs union.
While the Afragreement is already in force, several details needed to be ironed out for the start of trade in goods and services under the new tariff rules.
The African Union had fixed a summit in Johannesburg in May to finalize the agreement. But, the summit was canceled after the South African government closed conference facilities and prohibited public gatherings due to coronavirus lockdown measures.
Mene said he was confident that the agreement would still go forward in the coming months.
“The political commitment remains, the political will remains to integrate Africa’s market and to implement the agreement as was intended,” he said.
Mene said intra-African trade would serve as economic stimulus packages for African countries to mitigate the economic damage from the coronavirus pandemic.
“That’s our stimulus package,” Mene said, adding “That’s how we’re going to get back on track as Africa.”
