How multiple currencies, insecurity threatened implementation of AfCFTA

The Secretary-General of the African Continental Free Trade Area Secretariat (AfCFTA) Wamkele Mene has decried the high level of insecurity as well as multiple currencies on the African continent, saying that it threatening the full implementation and gains of the agreement.

He said Africa has about 42 currencies operated by different countries, which was the reason why West African leaders present at a summit in Ghana over the agreed on a new road map to launch a single currency in 2027.

The bloc had planned to launch a common currency this year but postponed the plan due to challenges posed by the coronavirus pandemic.

ECOWAS Commission President Jean-Claude Kassi Brou said the pandemic had upset plans to implement the convergence pact.

“We have a new road map and a new convergence pact that will cover the period between 2022-2026, and 2027 being the launch of the eco,” he said.

The Eco currency is expected to unify many currencies in the West African region, which will facilitate regional trade and boost the implementation of the AfCFTA.

Making his submissions at a meeting with select journalists in Abuja on Tuesday, Mr Wamkele said, “Africa has 42 currencies and it is a constraint as we cannot boost trade with 42 currencies, maybe not for all countries.

“Another issue we are currently working on to achieve with this trade agreement is to boost intra African trade. For instance, Intra-African trade is 18 per cent while intra- EU trade is 70 per cent, which means we trade significantly with the Europeans than ourselves in Africa.

“The heads of states know the importance of trade to development which is why 15 years from now, our target is that 97 per cent of products should be traded at zero tariffs.”

Speaking further on the current level of AfCFTA, he explained that “38 countries have so far ratified the agreement out of 52, the delay is expected as the legal and political process must be followed before it is ratified.

“Overall, we are at the initial stages of implementation. Remember phase 1 deals with trade in goods and services while phase 2 captures international property rights, so we have to conclude the initial stages as well as the market integration

“I am not worried about the slowness of the process because we are engaging with the head of states on the need to get involved and reap the benefits. And it will interest you to know that the head of states has given us six months to conclude the initial stages.”

Answering question on infrastructure and security deficits on the continent, the SG admitted that if security challenges are not addressed, it will form a major challenge.

“I share concerns of stakeholders on the Insecurity on the continent as conflicts will not allow the trade agreement to have full implementation. The leaders on the continent are fully aware which is why they held a summit on the AfCFTA and tagged it a decade of silencing the guns.”