The AfCFTA is the world ’ s largest free trade area bringing together the 55 countries of the African Union and eight regional economic communities . The purpose of the AfCFTA is to create a single market for the continent by enabling the free flow of goods and services across the continent and boosting the trading position of Africa in the global market . The AfCFTA is expected to expand the size of Africa ’ s economy to USD29-trillion by 2050 .

There have been many delays in implementing the AfCFTA including the Covid-19 pandemic , prolonged and complex negotiations , administrative issues and the overlap with existing RECs and customs unions . However , despite numerous challenges , the GTI is a positive and pragmatic step in taking the implementation process forward .

WHAT IS THE GTI ? The GTI seeks to allow commercially meaningful trade and will test the operational , institutional , legal and trade policy environment under the AfCFTA . The GTI is an important opportunity to assess the effectiveness of the mechanisms that have been put in place and address any teething issues that may arise .

Currently , eight countries are participating in the GTI - Cameroon , Ghana , Egypt , Kenya , Mauritius , Tanzania , Tunisia and Rwanda . The participating countries have all met the minimum requirements and deployed the AfCFTA E-Tariff Book and the Rules of Origin Manual .

WHEN DID THE GTI COMMENCE AND WHAT GOODS DOES IT COVER ? The GTI was launched in October 2022 . The products earmarked to trade under the GTI include ceramic tiles ; batteries , tea , coffee , processed meat products , corn starch , sugar , pasta , glucose syrup , dried fruits , and sisal fibre , amongst others , in line with the AfCFTA focus on value chain development . So far , Kenya has shipped its first batch of batteries and tea to Ghana , and Rwanda has exported coffee products to Ghana .

HOW WILL THE GTI WORK AND WHAT IS THE IMPACT FOR BUSINESSES TRADING IN AFRICA ? The GTI will guide pre-selected shipments of goods through customs clearance , including reduced tariff treatment under the AfCFTA in the receiving AfCFTA countries .

Based on feedback in the market , many businesses are eager to monitor the outcomes of the GTI . Businesses are looking to take advantage of the AfCFTA to facilitate trade – in some instances , between countries that have not traded with each other before . Businesses are particularly encouraged by the offer of preferential / reduced tariff rates and the eventual possibility of zero tariffs .

The GTI has also underscored the importance of political will and a broader ecosystem of stakeholders to drive the implementation of the AFCFTA forward . Many countries are looking to enhance their competitiveness by increasing investment promotion incentives driven by increased manufacturing and trade .

INVESTMENT BY THE PRIVATE SECTOR WILL DRIVE THE AFCFTA FORWARD Four key value chains ( automotive , agribusiness , healthcare , and logistics ) are leading the implementation of the AfCFTA , with planning , lobbying and investment . Making a success of the AfCFTA will not only require a focus on trade facilitation , but also investments by governments and the private sector to open up the vast continental market of approximately 1.4 billion ( mostly young ) people .

Governments that have signed the agreement are turning their attention to making their countries more attractive to investors , introducing enabling legislation and incentives such as special economic zones . Implementation depends , not on signing the agreement , but on action from relevant ministries , such as energy , transport , tax and telecommunications , to put it into effect .

A number of issues need to be addressed to enable free movements of goods and people , such as full liberalisation of the skies ( rather than merely bilateral agreements ), opening up trade corridors and developing infrastructure .

LEADING SECTORS Four key value chains are leading the charge , and will be supported by innovation , technology , and sustainability . These value chains are :

• automotive and affordable mobility ( twoand three-wheelers , buses , and public transport in general , and with a focus on rare earth minerals );

• agri-business and agri-processing ;

• healthcare , pharmaceutical , and medical devices ; and

• transport and logistics .

Another value chain that is likely to bring countries together is renewable energy .

Leaders in the automotive industry have engaged with African governments such as in Ghana and Egypt to create a more conducive environment for manufacturing . It is particularly important in the automotive sector that minerals and components needed for manufacture should be sourced from Africa , which involves local partnerships and supplier development programmes to enable SMEs to grow .

By 2030 , agribusiness is expected to be a USD-1 trillion market . Currently , about USD- 35 billion of food products are imported into the continent every year , and this is expected to grow to USD-110 billion by 2025 . This represents capital which could potentially be circulated within the continent instead and stimulate development . Large food companies in countries such as South Africa , Egypt , Tanzania and Cote d ’ Ivoire are considering opportunities presented by the AfCFTA .