President Kagame urged African countries to address challenges delaying the implementation of AfCFTA.
President Paul Kagame has called on African countries to move fast in terms of removing hurdles that are still holding back the full implementation of the African Continental Free Trade Area (AfCFTA), including political, policy and governance challenges, which do not require much, to unlock the opportunities of integration.
The Head of State made the rallying call at the official opening ceremony of the 2nd AfCFTA Business Forum dubbed ‘Biashara Afrika 2024’, which is taking place at the Kigali Convention Centre (KCC), bringing together leaders and decision makers to chart the path for operationalising the continental trade initiative.
President Kagame began his remarks but thanking the delegates for considering to come to Rwanda for the important gathering, regardless of the Marburg Virus Disease in Rwanda, observing that the outbreak is under control and thanked the African Centre for Disease Control (Africa CDC) and other international partners for joining the country in fighting and controlling the virus.
“I want to assure you that Rwanda is doing whatever we can to contain and control this virus but our best efforts cannot amount to anything without the solidarity and support we have enjoyed from Africa CDC and other partners,” he said, adding that regardless of the initial panic, there was no cause for alarm.
President Kagame said the Marburg virus is under control.
Addressing the opening ceremony of the three-day forum, themed “Dare to Invent the Future of the AfCFTA”, which is focusing on the challenges and opportunities in the process of building regional and continental value chains and establishing reliable supply chain networks, President Kagame said there is a need for countries to act quickly and address impediments affecting trade and free movement of people.
“The journey to establish the world’s largest free trade area began here in Kigali, six years ago. One year later in Niamey, the operational phase of AfCFTA was launched. These two historic moments demonstrate our commitment to the economic unity and prosperity of Africa,” President Kagame said, adding however that six years later, there is an urgent need to accelerate efforts to take advantage of the opportunities.
“We now live in a complex and ever-changing world. But there are a lot of opportunities for us to take advantage of. As a continent, how well we adapt will depend on how strongly connected we are, and on the value we add to our collective wealth. The good news is that integration in Africa is ongoing, and already, we can see positive results,” he said.
President Kagame commended the work done by the AfCFTA Secretariat, led by Secretary General Wamkele Mene, to accelerate the implementation of the continental initiative, with the support of the African Union Commission (AUC), which has played a pivotal role in the operationalization of the AfCFTA.
We need to fix our problems
President Kagame said that the full realisation of the AfCFTA will depend on how countries commit themselves to address the stumbling blocks that are still affecting the progress of the agreement which was adopted in Kigali and Niamey in 2018 with the aim of improving how African countries trade with each other.
“Indeed Africa is capable of coming together to solve our own problems but of course I want to urge our leaders also to make sure that some of the things that stand in our way that are actually not too difficult to address should not continue to be the case. We need to fix our politics, our governance and it all begins with the mindset and clarity of vision,” President Kagame said.
President Kagame added that it is disturbing that when people talk about AfCFTA and Intra-Africa trade, the first thing that comes to mind is lack of free movement of people and goods, wondering why at this point the conversation is still around something that can be easily addressed.
“Why should there be anything like that? Why shouldn’t there be free movement of people goods and services? Why shouldn’t people of one country freely move across the border to another country or across the whole continent? What
is the issue?” he pondered.
“In the end we agree we are brothers and sisters and same people that have same needs, but in the end, the lack of this freedom of people to move freely is something we must fix,” President Kagame said, pointing out that even when moving freely across borders is an issue, in some places people don’t move freely within their own borders and it is all about politics that can be fixed.
“But we can do more and we can go faster. Over 30 countries are now participating in the guided trade initiative. Rwanda is happy to be among the first countries to join this pilot phase. Governments need to continue doing their part to create an enabling environment for business,” he pointed.
The Head of State said that removing non-tariff barriers should remain a priority for the continent as well as facilitating cross border movement, reducing the cost of travel and freight logistics can also be a gamechanger. He pointed out that Africa has some of the highest cost of flights in the world.
In Rwanda, he said efforts have been made to minimise the cost of flights and logistics, with the national carrier RwandAir providing affordable service to the private sector to expand their reach on the continent.
The private sector was fully represented.
President Kagame recognised the role the Ethiopian Airline is playing in terms of connecting Africa and beyond, adding that there is a need for more players like the airline because even with so much work they are doing, still Africa is begging to be connected.
“The focus should be on supporting small and medium enterprises. The reason is simple. These businesses and the women and young people that own them are the backbone of Africa’s economy but they shouldn’t remain small and medium. They need to grow,” he said.
President Kagame said that building a single continent market does not happen overnight, calling for more efforts towards making it work.
“A lot of progress has been made but the road is still long. Even in the face of challenges, we need to be consistent and think outside of the box. That is the formula for success. Working together there is nothing we cannot achieve,” President Kagame said.
On his his part, former Niger President Mahamadou Issoufou said that the AfCFTA will go a long way in achieving the Agenda 2063 which is 39 years away, pointing out that while it must seem far, there is a need to be more dynamic and speed up efforts to bolster the continental trade and boost socioeconomic development.
Former Niger President Mahamadou Issoufou, who is also the champion of the AfCFTA, said there is immense potential for African countries to tap into.
“After 5 years of implementation, we can admire the fact that we are on the right track with countries like Rwanda working fast to remove obstacles that affect trade and investment,” President Issoufou said, adding that with a combined GDP of an estimated US$ 3.4 trillion and connecting a population of 1.3 billion people on the continent, the AfCFTA has immense potential to turnaround socioeconomic development on the continent.
Dr. Monique Nsanzabaganwa, Deputy AUC Chairperson, who represented Moussa Faki Mahamat, said that the idea of an integrated, prosperous and peaceful Africa maybe facing unprecedented challenges today but the AfCFTA is a reminder that the continent can make progress regardless
“This forum embodies our continent’s commitment to the integrated African market. I do not need to labour much convincing you of what the AfCFTA holds for Africa, but I want to re-emphasize that this single market of almost 2 billion people, come 2035, has the potential to create tremendous wealth while unlocking industrialisation on our continent, hence, the pertinence of discussing value chains and supply chains here today,”
“To achieve this, we must enhance the private sector’s role and create a conducive environment for our youth and women-led enterprises, encouraging innovation and growth. The private sector, as Africa’s growth engine, is essential in enabling smooth cross-border trade, promoting seamless movement of goods and fostering opportunities,” Dr. Nsanzabaganwa said.
Like earlier speakers, she pointed out that the African Union protocol On free movement of persons, which was also signed in Kigali, to facilitate the AfCFTA is yet to gain momentum.
AUC Deputy Chairperson Dr. Nsanzabagwana called on African countries to ratify the free movement of persons protocol to facilitate the AfCFTA.
“Though 33 member states have signed the protocol today, about 27 of them in Kigali in 2018, only four have ratified it Which is less than the 15 We need for the protocol to enter into force,” Dr. Nsanzabaganwa said, adding the the meeting in Kigali is an opportunity to advance the agenda.
She congratulated Rwanda on ratifying the protocol, calling on other countries to follow suit. Nsanzabaganwa also commended SG Mene and his team and the Secretariat for their work to ensure that the AfCFTA is functioning and on the move.
Secretary General Mene commended President Kagame and the Government of Rwanda for taking the lead in driving the AfCFTA, which serves as a very important platform, particularly small and medium enterprises and youth entrepreneurs,” he said, thanking the leaders, including those present and others who were not in attendance for supporting the AfCFTA cause.
“Over 400 Africans live in extreme and moderate poverty. Trade and access to new markets is essential for us Africans to reduce poverty. The AfCFTA with its comprehensive and continental scope offers Africa a path out of poverty, through trade. When we intensify our efforts aimed at economic integration and laying the groundwork for a single continental market, I believe we enhance our opportunity for us as Africans to defeat extreme and moderate poverty,”
Dr. Kaseya, Africa CDC Director General said pandemic outbreaks show that the African continent needs to be self-reliant in dealing with health emergencies.
Rwanda’s Minister of Trade and Industry, Prudence Sebahizi, who has been among the people at the forefront of operationalizing the AfCFTA, said that the continent is closing in on achieving a major breakthrough which will transform trade on the continent more than ever.
“History will forever recall that the AfCFTA was born right here in this very room at the Kigali Convention Centre on 21 March 2018, when African leaders were here to sign the agreement establishing the AfCFTA. This momentous occasion marked the dawn of a new era for African trade. It was a significant milestone that reaffirmed Rwanda’s dedication to pan-Africanism and the broader vision of African unity and economic self-reliance.”
Minister Sebahizi said that the AfCFTA serves as a vital platform among business leaders, which offers invaluable opportunities to engage in meaningful discussions to address emerging challenges and exploring full growth and development.
Sebahizi said that it is now up to the private sector to harness the opportunities resulting from an expanded market, to fully unlock the potential of the continent in travelling, trade, services, industrialization and creating millions of jobs.
African CDC Director General, Dr. Jean Kaseya spoke out on the recent Marburg outbreak in Rwanda and other pandemics which affect the African continent, pointing out that it is high time the continent founds its own means to deal with such urgent health situations, which he said go hand in hand with development.
He cited an example of how the U.S unilaterally decided to upgrade its travel advisory to Rwanda, without any consultations, something he said is counterproductive, despite the country being among those that come to the rescue when Africa needs help.
Dr. Kaseya said that such developments reiterate why African countries need to develop their own systems that can deal with such emergencies rather than being reliant on others, or decisions from elsewhere that are not evidence-based.
