Summary of Cairo local Time 29 4 2025 Nevine Nabil Nakhla

The video features an interview with Dr. Naveen Nafler, the Egyptian representative of the African Continental Free Trade Area (AfCFTA), discussing Egypt’s recent presidency of the AfCFTA council of ministers and the broader implications for intra-African trade and economic integration.

Key Points and Insights:

• AfCFTA Overview:
  • The AfCFTA is the largest free trade agreement globally by the number of countries involved—55 African nations.
  • It covers a population of approximately 1.4 billion, with a young median age of 24 years.
  • The agreement aims to boost trade within Africa, which previously accounted for only 12% of total African trade.
  • By January 2025, 49 out of 54 African countries have ratified the agreement, with many implementing zero tariffs on traded goods.
  • Egypt has issued over 2,140 AfCFTA certificates to facilitate exports.
• Trade Beyond Goods:
  • AfCFTA also includes trade in services, not just products.
  • Efforts are underway to support micro, small, and medium enterprises (MSMEs) to participate in intra-African trade.
• Challenges and Negotiations:
  • Pending technical negotiations focus on rules of origin, especially for sensitive sectors like clothing and automobiles.
  • Some countries are cautious about opening these sectors due to potential impacts on local industries.
  • The African Union has established a settlement fund to compensate countries that lose tariff revenue due to the agreement.
• Industrialization and Supply Chains:
  • A key goal is to promote industrialization within Africa, reducing reliance on exporting raw materials and instead encouraging manufacturing within the continent.
  • This will enhance supply chains and add value locally rather than exporting raw goods for external processing.
• Regional Cooperation and Digital Innovation:
  • Strengthening bilateral and regional cooperation in logistics, financing, infrastructure, and technology is crucial.
  • Several digital summits across Africa (in Egypt, Rwanda, Zambia) are fostering financial inclusion and digitization of sectors like healthcare and trade.
  • The Central Bank of Egypt supports MSMEs by offering financial inclusion accounts with no fees and low-interest loans (5%) to promote manufacturing for export.
• Financial Integration:
  • Egypt has signed onto the Pan-African Payment and Settlement System (PAPSS), enabling trade among African countries using local currencies (e.g., Egyptian pounds), reducing dependence on hard currencies.
• Cultural and Economic Integration:
  • The AfCFTA fosters not only economic ties but also cultural exchange and mutual understanding among African nations, building on historical trade links dating back to ancient Egypt.

Notable Mentions:

• Dr. Naveen Nafler, AfCFTA representative in Egypt
• Egyptian President Abdel Fattah el-Sisi (congratulated)
• Minister of Investment and Foreign Trade Hassan Katib (quoted on negotiations)
• Central Bank of Egypt (supporting MSMEs and financial inclusion)
• Pan-African Payment and Settlement System (PAPSS)
• Upcoming digital summits in Egypt, Rwanda, and Zambia

This discussion highlights the transformative potential of the AfCFTA for Africa’s economic landscape, emphasizing intra-continental trade expansion, industrialization, digital innovation, and financial integration.

Notable Quotes

— 06:14 — « Imagine if 54 countries and 49 countries of them ratified the agreement if 49 countries get together back to back. Imagine the strength of this AFCA agreement. »

— 10:26 — « The Central Bank of Egypt opened financial inclusion accounts for all the MEMEs with no administration fees, no minimum payments, and even moved some from the unofficial economy to the official economy by opening company accounts with their ID and the name of their organization. »

— 11:41 — « Egypt signs the PAPS, the Pan Africa Payment Settlement system, and this will allow us to trade among African countries with the Egyptian pounds. This is a big step to remove the load of hard currencies when we are trading among ourselves in Africa. »

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Lifestyle

Video