AfCFTA in full swing - Iipumbu
Trade and industry minister Lucia Iipumbu announced that the signing of the Africa Continental Free Trade Area Agreement (AfCFTA) will see the removal of tariffs on 90% of goods by African Union (AU) member states.
Iipumbu said this during a Cabinet briefing last week.
She said the continental agreement has liberalised services and aims to tackle non-tariff barriers that hamper trade between African countries, such as long border delays.
"The prospects are that free movement of people and even a single currency will become part of the trade area, especially as we have initiated the removal of the requirements of passports between our member states,” the minister said.
"Namibia's tariffs offered under the Southern African Customs Union (SACU) were approved by the AfCFTA, and we are currently in the process of preparing to participate in the guided trade initiative where we will send off the first consignment for Namibian goods under the agreement, envisaged to be done by the latest November 2024 to signify the commencement of our trading under this agreement," she noted.
Single market
Iipumbu said the agreement was designed to achieve a single market with lower trade tariffs and simplified rules of origin and customs procedures.
"It also looks at the harmonised regulations for trade in services and trade remedies that are made available to all other economic players. Namibia is ready to tap into a single market of about 1.3 billion people while growing at home and industrialising the local economy to produce goods and services with which we trade in Namibia," she said.
As of September 2023, the agreement had 54 signatories; 47 countries have ratified the agreement, accounting for 85% of the 55 AU member states, of which Namibia is one.
Iipumbu further revealed that the AfCFTA is the world’s largest free trade area by the number of countries, with a combined gross domestic product (GDP) valued at more than US$3.4 trillion.
Iipumbu said this during a Cabinet briefing last week.
She said the continental agreement has liberalised services and aims to tackle non-tariff barriers that hamper trade between African countries, such as long border delays.
"The prospects are that free movement of people and even a single currency will become part of the trade area, especially as we have initiated the removal of the requirements of passports between our member states,” the minister said.
"Namibia's tariffs offered under the Southern African Customs Union (SACU) were approved by the AfCFTA, and we are currently in the process of preparing to participate in the guided trade initiative where we will send off the first consignment for Namibian goods under the agreement, envisaged to be done by the latest November 2024 to signify the commencement of our trading under this agreement," she noted.
Single market
Iipumbu said the agreement was designed to achieve a single market with lower trade tariffs and simplified rules of origin and customs procedures.
"It also looks at the harmonised regulations for trade in services and trade remedies that are made available to all other economic players. Namibia is ready to tap into a single market of about 1.3 billion people while growing at home and industrialising the local economy to produce goods and services with which we trade in Namibia," she said.
As of September 2023, the agreement had 54 signatories; 47 countries have ratified the agreement, accounting for 85% of the 55 AU member states, of which Namibia is one.
Iipumbu further revealed that the AfCFTA is the world’s largest free trade area by the number of countries, with a combined gross domestic product (GDP) valued at more than US$3.4 trillion.
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