Angola's Commitment To The African Free Trade Agreement

Angola has signed the African Continental Free Trade Area (AfCFTA) agreement, which is a trade agreement that foresees the creation of a single market, the constitution of an economic union, and an area for the free movement of persons. The agreement was signed by 44 of the 55 member states of the African Union in Kigali, Rwanda, on 21 March 2018, and came into force on 30 May 2019. Angola's ratification of the agreement was confirmed by the President of Angola.

Angola signed the African Continental Free Trade Area (AfCFTA)

Angola has signed the African Continental Free Trade Area (AfCFTA) agreement. The AfCFTA is a free trade area that encompasses most of Africa. It was established in 2018 by the African Continental Free Trade Agreement, which has 43 parties and another 11 signatories. This makes it the largest free-trade area in terms of the number of member states, after the World Trade Organization, and the largest in terms of population and geographic size, spanning 1.3 billion people across the world's second-largest continent.

The agreement founding the AfCFTA was brokered by the African Union (AU) and signed by 44 of its 55 member states in Kigali, Rwanda, on March 21, 2018. Angola is one of the 44 countries that initially signed the agreement. The proposal was set to come into force 30 days after ratification by 22 of the signatory states. On April 29, 2019, the 22nd deposit of instruments of ratification was made, bringing the agreement into force on May 30, 2019, with trade commencing on January 1, 2021.

Under the agreement, AfCFTA members are committed to eliminating tariffs on most goods and services over a period of 5, 10, or 13 years, depending on the country's level of development and the nature of the products. The general long-term objectives of the AfCFTA include creating a single, liberalised market; reducing barriers to capital and labor to facilitate investment; developing regional infrastructure; and establishing a continental customs union. The overall aim is to increase socioeconomic development, reduce poverty, and make Africa more competitive in the global economy.

The AfCFTA is expected to boost intra-African trade and contribute to economic growth on the continent. It will also strengthen commercial relations and bring new business opportunities for investors and economic operators in the participating countries. Angola's participation in the AfCFTA demonstrates its commitment to regional integration and economic cooperation within Africa.

AfCFTA aims to create a single market and economic union

Angola has signed the African Continental Free Trade Agreement (AfCFTA), which aims to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately US$3.4 trillion. This would make it the world's largest free trade area in terms of the number of countries participating and the population and geographic size covered.

The agreement seeks to eliminate trade barriers and boost intra-African trade, with members initially required to remove tariffs from 90% of goods, eventually allowing free access to at least 97% of goods and most services across the continent. The practical implementation of the AfCFTA has the potential to foster industrialisation, job creation, and investment, thus enhancing Africa's competitiveness in the medium to long term.

The agreement also seeks to advance trade in value-added production across all service sectors of the African economy, contributing to the establishment of regional value chains. This will enable investment and job creation, and facilitate capital flow and investments by creating a sizable market.

The AfCFTA is expected to establish a Common Continental Market and contribute to the African Union's Agenda 2063, which is the continent's long-term development strategy for transforming Africa into a global powerhouse.

Angola is a member of the Southern African Development Community (SADC)

The origins of SADC can be traced back to the 1960s and 1970s when the leaders of majority-ruled countries and national liberation movements coordinated their efforts to end colonial and white-minority rule in Southern Africa. The Southern African Development Coordination Conference (SADCC), formed in April 1980, was the forerunner of the socio-economic cooperation leg of today's SADC. SADCC was transformed into SADC in August 1992, with the adoption of the Windhoek Declaration and Treaty by the founding members of SADCC and newly independent Namibia.

SADC has 27 legally binding protocols dealing with issues such as defence, development, illicit drug trade, free trade, and the movement of people. One of the principal bodies of SADC is the Organ on Politics, Defence and Security (OPDS), which fosters regional security and defence cooperation, promotes peace, and manages conflicts.

While SADC promotes regional integration and cooperation, one challenge it faces is that member states also participate in other regional economic and political cooperation schemes that may compete with or undermine its aims. Additionally, SADC has been criticised for its lack of priority given to human rights compliance within its member states.

Despite these challenges, SADC continues to work towards its objectives of development, economic growth, and poverty alleviation in the region.

Angola is not part of the Southern African Customs Union (SACU)

Angola has signed the African Continental Free Trade Area (AfCFTA) agreement, which came into force on May 30, 2019, and trade commenced on January 1, 2021. However, Angola is not a party to the Southern African Customs Union (SACU). SACU is a customs union among five countries in Southern Africa: Botswana, Eswatini, Lesotho, Namibia, and South Africa. It is the oldest existing customs union in the world, having been established in 1910.

Angola is a member of the Southern African Development Community (SADC), which involves 15 member countries. However, it is not a signatory to the SACU, which only includes 5 of the 15 SADC members. The objective of SACU is to reduce trade barriers among the member countries. While Angola is not currently part of SACU, it has considered the possibility of future participation.

SACU was initially established by the British colonial power in the 1880s and has undergone several changes since its inception. The union meets annually to discuss matters related to the agreement and has several committees that meet more frequently to address specific issues. The member states share a common external tariff and excise tariff, and customs and excise revenues are collected and distributed among the members according to a revenue-sharing formula. SACU also provides a forum for consultative discussions and cooperative work on trade issues, with a focus on customs and trade facilitation, technical barriers, sanitary and phytosanitary measures, and trade and investment promotion.

Angola's absence from SACU can be attributed to its unique economic and trade landscape. As a dominant player in extractive industries, Angola's exports are primarily focused on oil, diamonds, and wood. The country has been working to diversify its economy and establish an export promotion agency to encourage exports to take advantage of preferential trade agreements, such as the African Growth Opportunity Act (AGOA) with the United States. Angola's regional trade agreements and negotiations are also focused on neighboring countries like Namibia, Zambia, and the Democratic Republic of Congo.

Angola has preferential trade agreements with the US

Angola has also signed a Trade and Investment Framework Agreement (TIFA) with the US, which provides a forum to address trade issues and enhance trade and investment relations between the two countries. The US and Angola also held the fourth session of the US-Angola Strategic Dialogue in April 2019, which focused on improving bilateral engagement on trade and investments, and boosting US investment in Angola.

Angola has taken steps to encourage exports to the US, recently establishing an export promotion agency, AIPEX, to encourage exports that could take advantage of AGOA. Angola has also placed emphasis on investment in the agriculture sector to promote local production and help reduce its import bill.

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