An update on free trade in Africa – the Guided Trade Initiative, regional value chains and measures for sustainable trade

An update on free trade in Africa – the Guided Trade Initiative, regional value chains and measures for sustainable trade

The AfCFTA Guided Trade Initiative (GTI) is the latest development designed to boost trade in the Africa’s continent-wide free trade zone. The GTI was launched in October 2022 with the aim of testing meaningful, continuous trade under AfCFTA and to assist in the development of regional value chains that will allow for more climate-friendly, sustainable trade across the continent.

The GTI will test AfCFTA’s policies, legal framework and operational and institutional environments. There are eight countries participating in the GTI that have all met the minimum requirements in terms of AfCTA’s tariff book and rules of origin – Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia. The GTI will allow the shipment of goods from these countries through customs clearance, including ceramic tiles, sisal fibre, batteries, and beverages and foodstuffs, including tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup and dried fruits. African countries receiving these goods will benefit from reduced tariff treatment (and possibly eventually from zero tariffs). The GTI will also focus on increasing opportunities for Small and Medium Enterprises (SMEs), youth and women in trade.

AfCFTA has the ultimate goal of increasing the ease of trade and investment across African borders, as well as eliminating