Kampala, Uganda – 21 September 2019. The Department of Trade and Industry of the African Union Commission (AUC) organized in partnership with Uganda Revenue Authority (URA), the 11th African Union Sub-Committee of Directors General of Customs Meeting from 16-20 September 2019 in Kampala, Uganda under the theme: “Entry into force of the African Continental Free Trade Area (AfCFTA) - Implications for African Customs administrations”. The objective of the Meeting was to examine the implications of the AfCFTA to Africans Administrations and take stock of the work carried out by it various experts groups and consider the recommendations therefrom. The Meeting was attended by Directors General of Customs from AU Member States, Customs Experts from the Regional Economic Communities (RECs), Experts from the African Export-Import Bank (AFREXIMBANK), the United Nation of Trade and Development (UNCTAD), the South African Association of Freight Forwarders (SAAFF), Representatives from the WCO Regional Offices for Capacity Building for the East and Southern Region (WCO ROCB ESA) and West and Central Africa Region (WCO ROCB WCA) and the Secretary General of the World Customs Organization (WCO).
After a brief address welcoming the Directors General and highlighting the key role their Customs administrations will play in implementation of the Agreement establishing the African Continental Free Trade Area (AfCFTA), Commissioner Dicksons Kateshumbwa invited the Commissioner General of the URA, Mrs. Dorothy Akol, to address the Meeting.
In her opening speech, Mrs. Akol underscored the impact that the entry into force of the AfCFTA would have in shaping the future of the African continent, as implementation of this powerful tool would boost intra-African trade and economic development, unleashing the potential of an integrated continent. “The AfCFTA agreement promises to; increase intra-African trade by 52% by 2022, create better macro-economic environment for SMEs who account for over 80% of the continents’ companies and contribute to a welfare gain of 16.1 billion dollars, especially favouring women and young people, who will benefit from the new job opportunities. More importantly, the African Continental Free Trade Area signals the collective will of African countries to work together to boost Africa's economic growth and development leading to the rapid transformation of the continent as encapsulated in agenda 2063: The Africa we want”, she explained.
In his address, Secretary General Mikuriya welcomed the entry into force of the AfCFTA as a beacon of progress and economic empowerment for Africa. From the perspective of economic integration and development, he emphasized the necessity of having Customs administrations at the forefront of the Continental Free Trade Area, particularly with regard to trade facilitation, consumer protection and border security. He reaffirmed the WCO’s commitment to supporting African Customs administrations through existing WCO initiatives such as the EU-WCO Harmonized System Programme for Africa, the Mercator Programme and the Security Programme. Dr. Mikuriya also shared during panel discussions, his perspectives on the key areas of the WCO’s work which would directly serve to support AfCFTA’s implementation. He noted that the WCO’s African Members had been working diligently to implement WCO instruments and tools, and would benefit from deeper cooperation between the WCO and the AUC. Concluding with security matters, he encouraged participation in the upcoming WCO Global Security Conference with a special focus on Africa, scheduled to be held in Brussels on 11 and 12 December 2019.
While addressing participants, the ongoing Chairperson of the African Union Sub-Committee of Directors General of Customs, Mr. Souef Kamalidini, Director General of Customs of Comoros, congratulated the Department of Trade and Industry of the AUC for the work done in close cooperation with it during his term. He welcomed the launch of the operational phase of the AfCFTA and indicated that the path will be long and winding and acknowledged that this is the only way to get African countries out of the rut and win against precariousness and misery in order to reposition the Continent on the balance of the world. “None of our countries will win alone. The work is common. We will win together. Let us continue from success to success, from victory to victory, for our countries, for our people, for our dear Africa”, he concluded.
In his opening statement, H.E. Ambassador Albert M. Muchanga, Commissioner for Trade and Industry of the African Union Commission, restated that the theme for the year was a timely, relevant and critical one with respect to the role of Customs. He acknowledged the WCO’s dedication to supporting African Customs administrations and expressed the desire for continued fruitful cooperation. He reminded the Customs Directors General that 1st July 2020 was the date set for implementation of the AfCFTA and expressed the view that a single continental market would serve as a precursor for investment and industrialization. Commissioner Muchanga continued by advocating for strong commitment to completing the remaining preparatory work, in order to pave the way for AfCFTA implementation. “In order to promote effective trade facilitation in the AfCFTA, you should use this meeting to ensure that African Customs Administrations are electronically inter-connected as part of your preparations to be ready for the start of trading on 1st July, 2020. The African Union Commission as Interim Secretariat of the African Continental Free Trade Area will call for an extraordinary meeting of the African Union Sub-Committee of Directors General of Customs to enable you familiarize yourselves with the AfCFTA trade documents as well as assess your state of readiness for the start of trading on that day”, he underscored.
In a speech delivered on behalf of His Excellency Mr. Yoweri Museveni, President of the Republic of Uganda, the Rt. Honourable Prime Minister of Uganda, Dr. Ruhakana Rugunda, welcomed the AU’s theme of “Entry into force of the AfCFTA - Implications for African Customs administrations” and acknowledged the central role that Customs would play in effective implementation of the AfCFTA. He acknowledged the fact that the implementation of the AfCFTA requires tariff liberalization, implementation of the AfCFTA Rules of Origin, implementation of trade facilitation measures that ensure faster movement of goods on the continent among others. ‘’Today, Intra African trade is less than one fifth of continental trade. One of the reasons often used to justify this anomaly of Africans failing to trade with each other is the high trade taxes. African economies will find it hard to become stronger unless they trade with each other. We are glad that the Agreement is going to remove trade taxes on at least 90% of all trade between African countries’’, he highlighted.
At the panel discussion session, the Directors Generals deliberated on the various implications of the entry into force of the AfCFTA which include but not limited to capacity building, human resources, legal frameworks, ICT, budget and finance, border management and impact on revenue collection.
Finally, The 11th AU Sub-Committee of Directors General of Customs ended with a number of recommendations on the main theme of the Meeting including, the request to the AUC to explore mechanisms of strengthening the human resource capacity at the Customs Cooperation Division to ensure effective and efficient coordination and implementation of program activities. The AUSCDGC also requested the Commission to conduct a review study of the work of the Sub Committee for the first 10 years with a view of taking stock of recommendations and their implementation status. The Study Report should be presented at the 12th AUSCDGC for consideration.
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For further information, please contact Mr. Dhunraj Kassee, Senior Policy Officer, Customs Cooperation - Email: KasseeD@africa-union.org
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Patient Atcho, Department of Trade and Industry – Tel: + 251 929335250 - Email: atchop@africa-union.org and Esther Azaa Tankou, Directorate of Information and Communication, AUC Tel. +251 911361185, E-mail: yamboue@africa-union.org
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