Kenya in further push for Africa free trade deal

African heads of states before the signing of the agreement establishing the African Continental Free Trade Area on March 21,2018 in Kigali. FILE PHOTO | NMG 

By AGGREY MUTAMBO

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Summary

• Only four countries out of the 44 that signed the agreement in Jan have it approved by their respective parliaments
• The four will are seeking to take advantage of the gathering to market the agreement again.
• The deal needs to be ratified by at least 22 countries to take effect

Kenya says it is joining hands with three other African nations to lobby for ratification of the continental free trade agreement passed in January to improve business.

As President Uhuru Kenyatta leaves today for Mauritania to attend the 31st ordinary Summit of the African Union Heads of State and Government, mainly to discuss graft on the continent; officials say they will seek to promote open borders as well.

The summit’s plan is to discuss budgetary approvals for the AU Secretariat as well as matters of corruption and security.

But Foreign Affairs CS Monica Juma says it will be another occasion to promote the African Continental Free Trade Area Agreement (AfCTA).

The AfCTA signed in March in Kigali Rwanda is meant to open up African nations borders, relax immigration rules and other non-tariff barriers to boost the continental trade from the paltry 14 per cent.

But while 44 countries out of 55 signed on the agreement, just four (Kenya, Rwanda, Niger and Ghana) have had the agreement approved by their local parliaments.

READ: Comesa cues Africa against protectionism in free trade regime

READ: Cross-border small traders to gain from deal

Market the agreement

Dr Juma says the four countries will take advantage of the gathering to market the agreement again.

“We signed the AfCTA in Kigali and we have already ratified the CFTA. The idea is to encourage (other) members of the African Union to ratify the agreement too,”

“We need 22 signatories for it to kick in and we are hopeful that we should be able to do that between now and January next year,” she said in a statement.

Nigerien President Mahamadou Issoufu is expected to Present a report on the Agreement during the Summit on July 1 and 2.

Ahead of the Agreement, President Kenyatta had announced in December he would be relaxing immigration rules for other Africans which would include visas on arrival for other Africans as well as right to own property for EAC nationals.

Corruption challenge

Yet as the leaders gather in Nouakchott, Mauritania, they will be faced with the challenge of corruption.

AU’s theme for 2018 is ‘The fight against corruption, a sustainable path to Africa’s Transformation’.

Nigerian President Muhammadu Buhari is the leader of this year’s theme.

His country, alongside several others in sub-Saharan Africa like Kenya, are considered among the most corrupt, according to rankings by Transparency International.

In January, AU leaders admitted in Addis Ababa that fighting corruption was the first step in improving governance.

“We have seen the world going into recession and it is blamed on poor management of resources, so it is not uniquely African,” Dr Juma added ahead of the summit.

“What is important here is that leaders of the African continent have decided that it is important to deal with spillage of resources, so that we can mobilise these resources towards achieving Agenda 2063,” she said, referring to the AU’s vision to be peaceful and prosperous in by 2063.

Yet the fight against corruption will have to start at home.

According to Transparency International, Kenya is ranked 143 out of 180 in 2017, just up from 145 in 2016.

Current scandals in the National Youth Service, the National Cereals and Produce Board, the kenya Pipeline and the Youth Fund where billions are said to have been misspent could add to the poor ranking.

Quarter of GDP

Continentally, the African Union itself admits that up to a quarter of the continent’s GDP lost through corrupt activities.

Last year in May, a report compiled by a group of tax justice NGOs on the continent and titled ‘How the World profits from Africa’s wealth’ indicated that Africa richbut most of its “wealth is being extracted by those outside it.”

Technically, Africa is owed about $41 billion if you subtract the $161 billion received in loans, aid and remittances from the $203 billion shipped out in profits, illicit flow of money, poaching, or imposed fees; according to a document prepared by Global Justice Now, Health Poverty Action, Ugandan Debt Network and several other organisations.

But the African Union still faces other problems of conflict, which are yet require a significant about of time from leaders to discuss.

South Sudan, Libya and Somalia, for instance, are still unsettled.

Essentially, the July summit is supposed to discuss the budget for the continental body which still struggles to finance itself.

AU Chairman Paul Kagame had proposed a 0.2 per cent levy on all imports from outside Africa to go towards funding the body.