UK Launches African Free Trade Initiative

UK Launches African Free Trade Initiative

The UK is set to launch the African Free Trade Initiative (AFTI) to boost African trade through reduced bureaucracy, improved transport infrastructure and more efficient border crossings.

The plan is contained in a statement signed by Hooman Nouruzi, Press Secretary of the British High Commission, Abuja, the Nigerian capital.

The statement quoted Mr Andrew Mitchell, the International Development Secretary, as saying that the aim of AFTI was to “oil the wheels of trade” by making business quicker, easier and cheaper.

THE INITIATIVE

Mitchell said that the initiative was as part of a push to unlock Africa's economic potential and enable people to pull themselves out of poverty.

He said that Britain would provide technical experts to unblock issues that continued to hold back economic growth across the region.

“This will include advising African countries on the design of border posts, infrastructure investment and analysis of major transport bottlenecks. Expected results include cutting the time it takes to travel the length of Africa's North-South Corridor from nine to seven days and reducing the journey time for goods. Lorries from Mombasa to Uganda and back to Mombasa in three days,” the statement quoted him as saying.

Break Down Trade Barriers

Mitchell said that the initiative would help to break down trade barriers and open opportunities for entrepreneurs, both large and small, to access new markets and invest in expanding production and trade.

He mentioned the three key areas that had been identified for AFTI to tackle.

They include tariff barriers to trade such as the duties imposed by governments on imports from other countries, and the provision of expert advice to national governments and regional bodies on how to bring down tariffs.

He said that there were “Soft'' barriers to trade like border post bureaucracy.

This, he said, made it difficult for companies to transport goods across borders without spending large amounts of time on different sets of paperwork.

He said that “Hard'' barriers to trade were poor infrastructure, crumbling roads or poor rail links that significantly increase journey times and reduce the number of potential trading partners because of access difficulties.

“AFTI will provide analysis of the major bottlenecks which are inhibiting trade and provide advice on which projects would be suited for Public Private Partnership investment.   The African Free Trade Initiative clearly demonstrates the UK's commitment to helping to oil the wheels of trade in Africa. We are offering real, tangible help, from technical assistance on transport infrastructure projects to technical assistance with streamlining border post bureaucracy. Together these will enable traders to move goods more quickly,'' he said.

Mitchell said that AFTI would work with the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA).

He said it would also work with the Southern African Development Community (SADC) and the Economic Community of West African States (ECOWAS) in West Africa.

NAN/Margaret/ Elewedalu