Proposed TFTA to raise intra-regional trade by 30pc

The proposed Tripartite Free Trade Area between the East African Community, Comesa and Southern African Development Community could potentially eliminate intra-regional trade bottlenecks and boost exports among member states by at least 30 per cent.

According to the EAC Secretariat, trade between the EAC and the Common Market for East and Central Africa in 2014 amounted to $2.7 billion while flows between the EAC and SADC stood at $3 billion.

The United Nations Economic Commission for Africa (Uneca) projects that the gains could even be bigger if non-tariff barriers between the three sub-Saharan Africa blocs are eliminated when the tripartite arrangement comes into force.

The Tripartite Free Trade Area was proposed in Kampala in October 2008, during a heads of state summit. The deal involves 26 countries with a total GDP of $1.2 trillion and a population of over 638 million people.

Needed boost

“Our estimates suggest that the TFTA could increase intra-regional trade by as much as 30 per cent. The manufacturing sector will benefit most, giving the needed boost to industrialisation,” said Andrew Mold, officer in charge of the sub-regional office for Eastern Africa at Uneca in Kigali.

In two weeks, African heads of state and government are scheduled to arrive in Kigali for the Global African Investment Summit, where the progress of the TFTA will be discussed.

The deal is expected to come into force after being ratified by at least two-thirds of the 26 member states.

But last month, member states differed on the sensitive goods and services that should be accorded preferential treatment from each bloc.

The upcoming Kigali summit, scheduled for September 5-6, will discuss the issue and other regional investments in agribusiness and private-public partnerships.