African Continental Free Trade Area Secretariat Gets African Development Bank Grant
By African Development Bank
Published July 16, 2022
African Development Bank, through its African Development Fund, has approved an US$11.02 million support package to the Permanent Secretariat of the African Continental Free Trade Area (AfCFTA).
AfCFTA, that is touted as being the world’s second-largest free trade area, has a potential market of 1.2 billion consumers though Africa has the world’s lowest level of intraregional trade at less than 18%, compared with 22%, 50% and 70% for Latin America, Asia, and Europe, respectively. AfCTFA aims to increase this by up to US$35 billion per year (25%) over a decade, lower annual imports by US$10 billion, and boost agriculture and industrial exports by up to US$45 billion (7%) and US$21 billion (5%) respectively.
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This second phase of support is aimed at encouraging sustainable intra-African trade and to increase the share of African countries participating in it. It is also intended to move the African trade integration agenda forward by enabling the secretariat and the countries of the zone – especially transition countries – to harmonize and integrate national and regional trade policy initiatives.
“The relationship between the AfCTFA Secretariat and the African Development Bank Group is crucial to achieving greater continental trade and the economic transformation of Africa,” says Abdu Mukhtar, Director of the Bank’s Industrial Development and Trade Department. “Our Board’s approval of this grant will enable the Secretariat to further ensure that trade is conducted in a harmonious, predictable and free manner on the continent.”
AfCFTA Secretariat opened its doors in Accra, Ghana, on August 17, 2020 with initial support of US$5 million to set up the secretariat, the programmes, and the tools and to raise stakeholder awareness.
