Foreign Affairs CS quells fears over Africa trade deal

President Uhuru Kenyatta signs the agreement establishing the African Continental Free Trade Area (AfCTA) in Kigali, Rwanda on March 21, 2018. PHOTO | PSCU

What you need to know:

  • Foreign Affairs CS Monica Juma on Monday said the Continental Free Trade Area agreement will be implemented with respect to local laws on investment and security to ensure Kenyans are given priority

  • Kenya was among the 44 countries that signed the African Continental Free Trade Area agreement last week during a summit in Kigali, Rwanda.

The Foreign Affairs ministry moved to quell fears that a newly signed trade deal could swallow local companies and encourage cross border crimes.

Foreign Affairs CS Monica Juma on Monday said the Continental Free Trade Area agreement will be implemented with respect to local laws on investment and security to ensure Kenyans are given priority.

“We have been working on robust security frameworks over the last five years. Peace and security is a priority for Kenya, as well as the protection of our territorial integrity,” she told the Morning Show on Capital FM radio.

“There should be no fears that foreigners will take our jobs. The department of Immigration has an elaborate system of work permit issuance. No foreigner can own a company 100 per cent. They also can’t get work permits for jobs that can be done by Kenyans,” Dr Juma said.

CLOSED BORDERS

Kenya was among the 44 countries that signed the African Continental Free Trade Area agreement last week during a summit in Kigali, Rwanda. Billed as one to open closed borders, it will expand trade within Africa by progressively reducing tariff barriers such as import quotas and taxation.

Specifically, the leaders said the estimated 1.2 billion people in Africa will help expand markets for goods which would otherwise be sold only to locals, in turn helping reduce unemployment on the continent.

But 10 African countries including Nigeria and Burundi did not sign the document. Nigerian President Muhammadu Buhari argued that certain clauses in the deal will need to be addressed first to ensure local manufacturers do no face unfair competition.

BOOST TRADE

In theory, the idea of free trade could boost low trade volumes in Africa. The UN Economic Commission for Africa (Uneca) says Africa trades with itself just 14 per cent of the time compared with Asia’s 25 per cent or Europe’s 60 per cent.

Critics argue the low trade is because of closed borders, where travellers require visas to most countries, low air or land connections, high tariffs against goods and similar products or low manufacturing.

“It will have a positive effect on the continental GDP and the intra-African trade. However, there is a need for Africa to be alive to the pros and cons of such trade agreements,” Mr Benard Ayieko, an economist and commentator on trade and investment told the Nation.