The AfCFTA has begun the guided trade initiative with 7 partnering countries enjoying duty-free and quota-free trading among themselves. This follows Secretary-General of the AfCFTA Wamkele Mene announcement on Friday, that at least 96 different products from the seven countries will now be freely traded under the rules of AfCFTA.
Tanzania, Mauritania, Kenya, Egypt, Cameroon, Rwanda, and Ghana are the countries first to participate in trading products that are made in Africa that include pharmaceuticals, rubber, aluminum kitchenware, sugar, steel, horticulture, and wooden products.
According to a recent report by AB & David Africa, intra-Africa trade had grown to 18% pre-COVI19 from 5% recorded in the preceding 15 years. This is expected to grow exponentially with the new guided trade initiative in effect is expected to increase cross-border lending. The appetite for foreign loans and syndicated lending is also expected to grow as the private sector and government seek to finance expenditure on infrastructure and increase of value addition options.
The implementation of the AfCFTA has also seen emergence of Africa-focused financial hubs, with countries like Morocco, Mauritius, and Rwanda introducing legislation to position themselves as centers of finance.
