Somalis in the horn Africa nation will soon enjoy the privilege to live and trade across Africa for the first time since the country attained its independence.
Being among the 27 states that signed a protocol allowing for free movement of goods and services, Somali government opened new door for its people.
African Continental Free Trade Area (AfCTA) will be world’s largest single market of 1.2 billion people.
Somalia which has good number of entrepreneurs in its population will have new trade relations with over 26 countries, not mentioning its citizens enjoy the same status as if they were back home.
Somalia in return, will offer the members of the bloc several opportunities including investing the country’s lucrative markets, fishing licenses, free movement of citizens from those countries.
Early this month, President Mohamed Abdullahi Farmajo has unveiled the country efforts to join the new bloc.
“We are trying to establish new trade organization. The bloc will lead the countries towards prosperity including improvements on trade, security and interaction between the communities,” said Farmajo during a speech at the Parliament.
AFCTA targets to bring together 1.2 billion people with a combined Gross Domestic Product (GDP) of more than $2 trillion.
The member countries will remove tariffs on 90% of goods produced within the continent.
“The promise of free trade and free movement is prosperity for all Africans because we are prioritizing the production of value-added goods and services that are made in Africa,” Rwandan President Paul Kagame said during the signing of the protocol.
Seventeen countries allowed ratifying AFCTA partially allowing for free trade with no movement and residency for foreigners from the continent.
Despite holding back, Eritrea, Uganda, Burundi, Nigeria and Guinea Bissau have six month ultimatum to sign the protocol, failure to which they will excluded the privileges.
Concerned about losing traffic and associated industry advantages, labour organizations led by Airline operators of Nigeria, President Muhammadu Buhari was forced not to attend the conference.
“We will think about it, we cannot allow our local manufacturers and entrepreneurs,” reads Mr. Buhari’s letter written the leaders at the conference in Kigali.
The signatories have been given six months to rectify the deal at national level.
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