AU Commission’s Albert Muchanga lists top priorities in AfCFTA rollout

The 34th African Union Summit launched a new era of trade and economic development in Africa with the implementation of the African Continental Free Trade Area (AfCFTA) at the beginning of this year. Albert Muchanga, the Commissioner of Trade & Industry at the African Union Commission, shared insights and priorities for the AfCFTA rollout and economic growth during an interview with CNBC Africa. Muchanga highlighted the progress made with 36 countries ratifying the agreement, with aims to increase this number further. He emphasized the importance of creating a robust program for economic development across the continent, particularly in light of the challenges posed by the COVID-19 pandemic. Muchanga spoke about the need to focus on debt sustainability for African countries and address economic recovery post-pandemic. He underscored the significance of the establishment of the new department of economic development, trade industry, and mining, demonstrating a commitment to promoting economic growth and development. The AfCFTA serves as a vehicle for export diversification and regional value chain development, offering opportunities for African countries to enhance their manufacturing capabilities. The interview also touched upon the global trade stage, with Muchanga highlighting the appointment of Ngozi Okonjo-Iweala as the first woman and African Director-General of the World Trade Organization. He pointed out the complementarity between the AfCFTA and WTO rules and the importance of enhancing Africa's share of global trade. Muchanga stressed the role of trade as a catalyst for development within Africa and in engaging with the international community. Furthermore, Muchanga addressed the localization strategies adopted by many African countries following the supply chain disruptions caused by the pandemic. He emphasized the importance of building internal capacities and promoting export diversification. The AfCFTA offers a platform for African nations to strengthen regional value chains and reduce dependence on imports, fostering economic resilience and industrial growth. In terms of trade relations with external partners like China, Muchanga highlighted the rules of origin as a key instrument to monitor the production of goods within Africa. Products that meet the rules of origin criteria will enjoy duty-free access within the AfCFTA market, while goods from outside Africa will face duties. This mechanism aims to prevent dumping and promote local industrialization. Overall, Muchanga's insights shed light on the progress and priorities for the AfCFTA rollout, economic development, and trade relations in Africa. With a focus on enhancing regional integration, fostering economic resilience, and promoting export diversification, the AfCFTA is poised to drive sustainable growth and development across the continent.