Informal Sector Will Not Benefit From AfCFTA – GITFiC CEO

Business

Selasi Koffi Ackom, Chief Executive Officer of the Ghana International Trade and Finance Conference (GITFiC), has said unequivocally that the African Continental Free Trade Area will not benefit the informal sector (AfCFTA).

By increasing Africa’s shared voice and policy space in global trade discussions, the AfCFTA aspires to accelerate intra-African trade and increase Africa’s commercial position in the global market.

However, Selasi Koffi Ackom has stated that the informal sector may not benefit from the AfCFTA.

Speaking under the theme, ‘Understanding the relevance of AfCFTA for Ghana and Industry Players’, he explained: “Incoterms play a major role in the AfCFTA and people do not really know about that. Incoterms are guidelines by WTO guiding the shipment or movement of goods. If you don’t know the incoterms to use you will lose. So, there are technicalities. What we are saying is that currently within the fundamentals, it is left with the technocrats. AfCFTA currently as it is, is not for the informal sector yet.”

He was quick to point out, however, that in order for the informal sector to benefit from AfCFTA, it must first establish a consolidation, define its markets, and seek advice from an experienced institution or consultant on how to proceed.

The African Continental Free Trade Area (AfCFTA) is a flagship project of the African Union’s Agenda 2063. It was approved by the 18th regular Session of the Assembly of Heads of State and Government, which met in Addis Abeba, Ethiopia, in January 2012, and adopted the decision to establish a Continental Free Trade Area. This plan, if implemented immediately, would generate rapid victories, have an impact on socioeconomic growth, and boost Africans’ confidence and commitment as the owners and drivers of Agenda 2063.

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