One of the key tools for monitoring the implementation of the African Continental Free Trade Area (#ZLECA) will be the country business index just unveiled at the Business Forum on the eve of the signing of the the historic agreement.
The Economic Commission for Africa (ECA), through its African Trade Policy Center (ACPC), has developed this index to measure the impact of the ZLECA through the impact generated for private operators .
ECA Executive Secretary Vera Songwe explains that the ZLECA Business Country Index brings together the views of business in Africa and ranks countries according to how they implement the CAFTA.
“By 2025, if our economies are doing well, and if we make the CAFTA work, the African market will be worth $ 3.6 trillion,” says Songwe. “It’s not insignificant for companies.”
Presenting the Index in detail, David Luke, CAPC Coordinator, points out that the ZLECA Business Country Index is a tool for measuring business sentiment and assessing the real impact of the CAFTA on the business environment. . It will encourage Member States to make the necessary improvements. “The index will be based on periodic surveys of the private sector, whether informal cross-border traders or large companies. This will be complemented by additional analysis of public data, including tariffs and trade volumes, “said Luke, noting that the index will allow countries to highlight the best students and identify latecomers.
The CAFTA Business Country Index will assess countries in four areas: the implementation of the CAFTA; the ease of doing business; trade for development, the SDGs, Agenda 2063 and finally the impact of the ZLECA.
The African Union Business Forum brought together African policymakers and business leaders to discuss their commitment to the Free Trade Agreement (CAFTA) to create a 1.2 billion people trading block. removing tariffs for 90% of goods traded on the continent and liberalizing trade in services.
