AFRICA Country Business Index (ACBI) has called on African countries to ratify and sign important agreements to promote trade and investment in the continent.

According to ACBI recommendations from the study conducted in seven African countries show that they performed better in awareness and use of free trade areas followed by a commercial environment.

This was revealed on Tuesday in Arusha by the African Continental Free Trade Area (AfCFTA) and ACBI report that surveyed businesses in Angola, Cote d’Ivoire, Gabon, Kenya, Namibia, Nigeria and South Africa.

Some of the agreements that African countries were advised to ratify are namely African Aviation Market, People’s Free Movement protocols, Copyright and Electronic Trade.

Speaking at the Webinar on Primer for the AfCFTA Country Business Index report that was organized by Economic Commission for Africa (ECA), the Executive Director, East African Business Council (EABC) Mr John Kalisa said, there is a need for flexible and clear predictable rules of origin for business to benefit from AfCFTA.

He also elaborated that the Rules of Origin consists of three broad dimensions as the first is the Good Restrictiveness and Costs, AfCFTA Knowledge and Commercial Environment in particular domestic environment related to services and other new generation issues under negotiation in the AfCFTA.

Mr Kalisa further explained that intra-regional trade is sliding back below 20 per cent due to persistent tariff and Non-Tariff Barriers imposed on both large and micro small medium enterprises.

He also recommended the sensitization campaigns on the AfCFTA, harmonization of standards and sanitary and phytosanitary (SPS) measures and improving transport and logistics in the continent.

ACBI shows Goods’ Restrictiveness and Costs constitute significant challenges to trading within the continent. Unauthorized Charges and other charges on trade are perceived as the most restrictive.

On her part, Ms Mama Keita, the Director of the Sub-Regional Office for East Africa (SRO-EA), UNECA said, the ACBI notes Africa can boost intra-African trade by 26percent in 2045 only by ensuring an active engagement with the private sector in the implementation of the AfCFTA.

Also a Deputy Executive Secretary and Chief Economist, ECA Hanan Morsy said, the Intra African trade is a key driver in building forward for a green, inclusive and resilient Africa.”

She also further explained that the African Continental Free Trade Area (AfCFTA) Agreement has huge potential to drive sustainable development.

ECA research forecasts that in 2045 Gross Domestic Product will be 55 billion US dollars higher and welfare will increase by 3 billion US dollars through the implementation of the AfCFTA.

Ms Hanan urged for simplification of administrative procedures to ease of doing business across Africa, also explained that the development of simplified regimes on the Rules of Origin will improve the utilization of existing FTAs and deepen value chain integration across borders.

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