- AfCTA hopes to create the world’s largest single market of 1.2 billion people and GDP of $3.4 trillion (Sh340 trillion).
- In the spirit of intra-Africa trade, Kenya and Djibouti on Wednesday signed four agreements aimed at boosting trade and deepening bilateral links.
- Intra-Africa trade, estimated to be around 12 percent, is still relatively low compared to other regions of the world.
Kenya and Ghana make history by becoming the first countries to ratify and submit AfCFTA treaty
Kenya’s Ambassador Catherine M. Mwangi, deposited the document at the new conference center, AU Commission.
The African Continental Free Trade Area (AfCFTA) treaty signed in Rwanda two months ago during the 10th Extraordinary Session of the Assembly of the AU on the AfCFTA is on its way to becoming a reality.
On Thursday morning, Kenya and Ghana became the first countries on the continent to submit legal instruments ratifying the Africa Continental Free Area Agreement.
Kenya’s Ambassador Catherine M. Mwangi, deposited the document at the new conference center, AU Commission and was received by H.E. Moussa Faki Mahamat, Chairperson of African Union.
Special Envoy from the Republic of Ghana also deposited the legal instruments.
Kenya has been on the forefront in pushing for the implementation of the Continental Free Trade agreement and was among the first countries out of 44 nations to sign the treaty.
Last month the Kenyan Parliament approved the ratification of the AfCFTA treaty.
The pact aims to establish an African economic community and spur industrialisation, infrastructure development and economic diversification across Africa by compelling African governments to remove tariffs on 90 percent of goods produced within the continent and phase out the rest over time.
AfCTA hopes to create the world’s largest single market of 1.2 billion people and GDP of $3.4 trillion (Sh340 trillion).
Intra-Africa trade, estimated to be around 12 percent, is still relatively low compared to other regions of the world. Intra-European trade is estimated to be around 60 per cent while that of Asia is around 40 per cent.
However, this trend is slowly but surely changing. In the spirit of intra-Africa trade, Kenya and Djibouti on Wednesday signed four agreements aimed at boosting trade and deepening bilateral links.
The agreements signed included Trade Agreement, MoU on Bilateral Cooperation in the Livestock Sector, Agreement on Reciprocal Promotion and Protection of Investments and an Agreement on visa exemption for holders of diplomatic passports.
The agreements were signed at State House, Nairobi, where President Uhuru Kenyatta hosted Djibouti President Ismail Omar Guelleh, who is on a three State Visit to Kenya.
Later on, the two countries held a business forum at Intercontinental Hotel officiated by Cabinet Secretary for Foreign Affairs, Amb. Monica Juma and Djibouti minister of state for investment, Hon. Ali Guelleh Aboubaker where the Djibouti delegation met with delegates from the Kenyan private sector.
“The trade between our two countries is extremely low despite our Geographical proximity, we are less than two and half hours apart, flying to Djibouti is like taking a flight from Nairobi to Kisumu so we must reverse this trend and I think today we have put in place mechanism to do so.” said Hon Juma.
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