India has welcomed the African Continental Free Trade Area (AfCFTA) which came into force this year and said it will help increase trade between India and Africa.

Speaking at United Nations General Assembly, India's deputy permanent representative to UN, Nagaraj Naidu said, "African Continental Free Trade Area, which came to force this year, has made Africa the world's largest free trade area... India views this development as yet another opportunity to boost trade and economic ties with Africa". The FTA has 1.2 billion consumers and a combined GDP of $3.4 trillion. The AfCFTA was signed in Kigali, Rwanda last year.

Naidu highlighted the trilateral partnership which New Delhi is working out in the continent like collaborating with Japan in the health sector and with the UAE in the IT sector in the continent.&nbsp;

Naidu said, "India’s partnership with Africa is based on a model of cooperation which is responsive to the needs of African countries. It is demand-driven and free of conditionalities. It is based on our history of friendship, historical ties, and a sense of deep solidarity. African priorities are our priorities."

India is increasing its engagement with Africa. Since 2014, there have been 32 outgoing high-level visits from India to Africa.

India has emerged as a major development partner of the continent and is implementing 181 lines of credit worth $11 billion in 41 African countries. India is also providing 50,000 scholarships to African students.

Interestingly, the statement came on a day when Russia hosted its first summit with Africa. The 4th India-Africa summit will take place in 2020.

India has welcomed the African Continental Free Trade Area (AfCFTA) which came into force this year and said it will help increase trade between India and Africa.

India has welcomed the African Continental Free Trade Area (AfCFTA) which came into force this year and said it will help increase trade between India and Africa. Speaking at United Nations General Assembly, India's deputy permanent representative to UN, Nagaraj Naidu said, "African Continental Free Trade Area, which came to force this year, has made Africa the world's largest free trade area... India views this development as yet another opportunity to boost trade and economic ties with Africa". The FTA has 1.2 billion consumers and a combined GDP of $3.4 trillion. The AfCFTA was signed in Kigali, Rwanda last year. Naidu highlighted the trilateral partnership which New Delhi is working out in the continent like collaborating with Japan in the health sector and with the UAE in the IT sector in the continent. Naidu said, "India’s partnership with Africa is based on a model of cooperation which is responsive to the needs of African countries. It is demand-driven and free of conditionalities. It is based on our history of friendship, historical ties, and a sense of deep solidarity. African priorities are our priorities." India is increasing its engagement with Africa. Since 2014, there have been 32 outgoing high-level visits from India to Africa. India has emerged as a major development partner of the continent and is implementing 181 lines of credit worth $11 billion in 41 African countries. India is also providing 50,000 scholarships to African students. Interestingly, the statement came on a day when Russia hosted its first summit with Africa. The 4th India-Africa summit will take place in 2020.

India says African Continental Free Trade Area will help enhance trade ties 

African leaders will meet Sunday in Niger for the African Union (AU) summit, to sign a landmark free trade agreement, and to discuss looming security and migration crises on the continent.

In a "historic" moment for the 55-member bloc, according to its chairman Moussa Faki, heads of state will officially launch the African Continental Free Trade Area (AfCFTA) at the two-day summit in Niamey, the Nigerien capital.

The agreement comes after 17 years of tough negotiations, and was formalised at the end of April when the agreement had crossed the launch threshold, which required ratification by at least 22 countries.

Nigeria, Africa's most populous country and largest economy, announced this week it would, after all, join the pact in Niamey, having unexpectedly pulled back from the agreement last year.

Nigeria's chief trade negotiator, Ambassador Chiedu Osakwe, said President Muhammadu Buhari would sign the landmark agreement, "opening Africa up to abundant opportunities.

"We weren't dragged into this, we are a leading advocate," Osakwe told AFP. "But it is about assessing how to make it work for Nigeria and indeed the continent."

State trade ministers agreed the zone should be operational from July 2020, AU Trade and Industry Commissioner Albert Muchanga told AFP, as countries needed time to adapt to the agreed changes.

An official start date will be agreed by heads of state Sunday -- with only Benin and Eritrea still to sign the agreement.

There are still key issues that need to be ironed out however, such as setting common criteria to determine rules of origin for traded products.

Amaka Anku, Africa analyst at Eurasia group, described the deal as a positive step but said the AfCFTA was still "a long way from taking off".

The AU estimates that implementing the AfCFTA will lead to a 60-per cent boost in intra-African trade by 2022.&nbsp;

At the moment, African countries trade only about 16 per cent of their goods and services among one another, compared to 65 per cent with European countries.

High security

Also on the summit agenda is security -- an issue afflicting the Sahel in particular.

Summit host Niger has faced constant attacks by jihadist groups.

Its fellow members in the G5-Sahel security pact -- Chad, Mali, Burkina Faso and Mauritania -- will seek backing at the AU summit to push for a greater UN security force to address the terror threat.&nbsp;

The countries hope to activate Chapter VII of the UN Charter, a Nigerien security source told AFP. The chapter allows for the UN Security Council to determine a threat to peace and propose measures, including military deployment, to deal with it.

"No prosperity, no integration is possible without peace," said Faki, who stressed the importance of an AU Peace Fund launched in 2018 to finance security activities and called on member states to fulfil their financial promises.

So far, only $116 million has been received for the envisaged $400-million fund.

Niamey is under high surveillance, with summit facilities subjected to strict access controls and a heavy security presence.&nbsp;

"We have a special unit of several thousand men" on duty, said Defence Minister Mohamed Bazoum.

The city has been revamped and boasts a brand-new airport, upgraded roads, and new hotels for the occasion.&nbsp;

Migration crisis

The leaders will also discuss boosting intelligence cooperation and the global migration crisis.

An airstrike Tuesday on a migrant detention centre near the Libyan capital, Tripoli, killed 53 and injured more than 130.

The AU's Peace and Security Council on Friday condemned what it called a "savage attack", calling for an independent inquiry into the incident.

AU member states needed to quickly repatriate their nationals from Libya "in order to prevent any further exploitation of their fragile situation," they said in a statement.

African leaders will meet Sunday in Niger for the African Union (AU) summit, to sign a landmark free trade agreement, and to discuss looming security and migration crises on the continent.

African leaders will meet Sunday in Niger for the African Union (AU) summit, to sign a landmark free trade agreement, and to discuss looming security and migration crises on the continent. In a "historic" moment for the 55-member bloc, according to its chairman Moussa Faki, heads of state will officially launch the African Continental Free Trade Area (AfCFTA) at the two-day summit in Niamey, the Nigerien capital. The agreement comes after 17 years of tough negotiations, and was formalised at the end of April when the agreement had crossed the launch threshold, which required ratification by at least 22 countries. Nigeria, Africa's most populous country and largest economy, announced this week it would, after all, join the pact in Niamey, having unexpectedly pulled back from the agreement last year. Nigeria's chief trade negotiator, Ambassador Chiedu Osakwe, said President Muhammadu Buhari would sign the landmark agreement, "opening Africa up to abundant opportunities. "We weren't dragged into this, we are a leading advocate," Osakwe told AFP. "But it is about assessing how to make it work for Nigeria and indeed the continent." State trade ministers agreed the zone should be operational from July 2020, AU Trade and Industry Commissioner Albert Muchanga told AFP, as countries needed time to adapt to the agreed changes. An official start date will be agreed by heads of state Sunday -- with only Benin and Eritrea still to sign the agreement. There are still key issues that need to be ironed out however, such as setting common criteria to determine rules of origin for traded products. Amaka Anku, Africa analyst at Eurasia group, described the deal as a positive step but said the AfCFTA was still "a long way from taking off". The AU estimates that implementing the AfCFTA will lead to a 60-per cent boost in intra-African trade by 2022. At the moment, African countries trade only about 16 per cent of their goods and services among one another, compared to 65 per cent with European countries. High security Also on the summit agenda is security -- an issue afflicting the Sahel in particular. Summit host Niger has faced constant attacks by jihadist groups. Its fellow members in the G5-Sahel security pact -- Chad, Mali, Burkina Faso and Mauritania -- will seek backing at the AU summit to push for a greater UN security force to address the terror threat. The countries hope to activate Chapter VII of the UN Charter, a Nigerien security source told AFP. The chapter allows for the UN Security Council to determine a threat to peace and propose measures, including military deployment, to deal with it. "No prosperity, no integration is possible without peace," said Faki, who stressed the importance of an AU Peace Fund launched in 2018 to finance security activities and called on member states to fulfil their financial promises. So far, only $116 million has been received for the envisaged $400-million fund. Niamey is under high surveillance, with summit facilities subjected to strict access controls and a heavy security presence. "We have a special unit of several thousand men" on duty, said Defence Minister Mohamed Bazoum. The city has been revamped and boasts a brand-new airport, upgraded roads, and new hotels for the occasion. Migration crisis The leaders will also discuss boosting intelligence cooperation and the global migration crisis. An airstrike Tuesday on a migrant detention centre near the Libyan capital, Tripoli, killed 53 and injured more than 130. The AU's Peace and Security Council on Friday condemned what it called a "savage attack", calling for an independent inquiry into the incident. AU member states needed to quickly repatriate their nationals from Libya "in order to prevent any further exploitation of their fragile situation," they said in a statement.

African leaders set to sign landmark trade deal at AU Summit

African leaders met on Sunday to launch a continental free-trade zone that if successful would unite 1.3 billion people, create a $3.4 trillion economic bloc and usher in a new era of development.

After four years of talks, an agreement to form a 55-nation trade bloc was reached in March, paving the way for Sunday's African Union summit in Niger where attendees will unveil which nation will host the trade zone's headquarters, when trading will start and discuss how exactly it will work.

It is hoped that the African Continental Free Trade Area (AfCFTA) - the largest since the creation of the World Trade Organization in 1994 - will help unlock Africa's long-stymied economic potential by boosting intra-regional trade, strengthening supply chains and spreading expertise.

"The eyes of the world are turned to Africa," Egyptian President and African Union Chairman Abdel Fattah al-Sisi said at the summit's opening ceremony.

AfCFTA "will reinforce our negotiating position on the international stage. It will represent an important step."

Africa has much catching up to do: its intra-regional trade accounted for just 17% of exports in 2017 versus 59% in Asia and 69% in Europe, and Africa has missed out on the economic booms that other trade blocs have experienced in recent decades.

Economists say significant challenges remain, including poor road and rail links, large areas of unrest, excessive border bureaucracy and petty corruption that have held back growth and integration.

Members have committed to eliminate tariffs on most goods, which will increase trade in the region by 15-25% in the medium term, but this would double if these other issues were dealt with, according to International Monetary Fund (IMF) estimates.

The IMF in a May report described a free-trade zone as a potential "economic game changer" of the kind that has boosted growth in Europe and North America, but it added a note of caution.

"Reducing tariffs alone is not sufficient," it said.

Divergent interests

Africa already has an alphabet soup of competing and overlapping trade zones - ECOWAS in the west, EAC in the east, SADC in the south and COMESA in the east and south.

But only the EAC, driven mainly by Kenya, has made significant progress towards a common market in goods and services.

These regional economic communities (REC) will continue to trade among themselves as they do now. The role of AfCFTA is to liberalise trade among those member states that are not currently in the same REC, said Trudi Hartzenberg, director at Tralac, a South Africa-based trade law organisation.

The zone's potential clout received a boost on Tuesday when Nigeria, the largest economy in Africa, agreed to sign the agreement at the summit. Benin has also since agreed to join. Fifty-four of the continent's 55 states have signed up, but only 25 have ratified.

One obstacle in negotiations will be the countries' conflicting motives.

For undiversified but relatively developed economies like Nigeria, which relies heavily on oil exports, the benefits of membership will likely be smaller than others, said John Ashbourne, senior emerging markets economist at Capital Economics.

Nigerian officials have expressed concern that the country could be flooded with low-priced goods, confounding efforts to encourage moribund local manufacturing and expand farming.

In contrast, South Africa's manufacturers, which are among the most developed in Africa, could quickly expand outside their usual export markets and into West and North Africa, giving them an advantage over manufacturers from other countries, Ashbourne said.

The presidents of both countries are attending the summit.

The vast difference in countries' economic heft is another complicating factor in negotiations. Nigeria, Egypt and South Africa account for over 50% of Africa's cumulative GDP, while its six sovereign island nations represent about 1%.

"It will be important to address those disparities to ensure that special and differential treatments for the least developed countries are adopted and successfully implemented," said Landry Signe, a fellow at the Brookings Institution's Africa Growth Initiative.

Regulations governing rules of origin, removal of non-tariff barriers and the development of a payments and settlements system are expected to be unveiled at the summit.

African leaders met on Sunday to launch a continental free-trade zone that if successful would unite 1.3 billion people, create a $3.4 trillion economic bloc and usher in a new era of development.

African leaders met on Sunday to launch a continental free-trade zone that if successful would unite 1.3 billion people, create a $3.4 trillion economic bloc and usher in a new era of development. After four years of talks, an agreement to form a 55-nation trade bloc was reached in March, paving the way for Sunday's African Union summit in Niger where attendees will unveil which nation will host the trade zone's headquarters, when trading will start and discuss how exactly it will work. It is hoped that the African Continental Free Trade Area (AfCFTA) - the largest since the creation of the World Trade Organization in 1994 - will help unlock Africa's long-stymied economic potential by boosting intra-regional trade, strengthening supply chains and spreading expertise. "The eyes of the world are turned to Africa," Egyptian President and African Union Chairman Abdel Fattah al-Sisi said at the summit's opening ceremony. AfCFTA "will reinforce our negotiating position on the international stage. It will represent an important step." Africa has much catching up to do: its intra-regional trade accounted for just 17% of exports in 2017 versus 59% in Asia and 69% in Europe, and Africa has missed out on the economic booms that other trade blocs have experienced in recent decades. Economists say significant challenges remain, including poor road and rail links, large areas of unrest, excessive border bureaucracy and petty corruption that have held back growth and integration. Members have committed to eliminate tariffs on most goods, which will increase trade in the region by 15-25% in the medium term, but this would double if these other issues were dealt with, according to International Monetary Fund (IMF) estimates. The IMF in a May report described a free-trade zone as a potential "economic game changer" of the kind that has boosted growth in Europe and North America, but it added a note of caution. "Reducing tariffs alone is not sufficient," it said. Divergent interests Africa already has an alphabet soup of competing and overlapping trade zones - ECOWAS in the west, EAC in the east, SADC in the south and COMESA in the east and south. But only the EAC, driven mainly by Kenya, has made significant progress towards a common market in goods and services. These regional economic communities (REC) will continue to trade among themselves as they do now. The role of AfCFTA is to liberalise trade among those member states that are not currently in the same REC, said Trudi Hartzenberg, director at Tralac, a South Africa-based trade law organisation. The zone's potential clout received a boost on Tuesday when Nigeria, the largest economy in Africa, agreed to sign the agreement at the summit. Benin has also since agreed to join. Fifty-four of the continent's 55 states have signed up, but only 25 have ratified. One obstacle in negotiations will be the countries' conflicting motives. For undiversified but relatively developed economies like Nigeria, which relies heavily on oil exports, the benefits of membership will likely be smaller than others, said John Ashbourne, senior emerging markets economist at Capital Economics. Nigerian officials have expressed concern that the country could be flooded with low-priced goods, confounding efforts to encourage moribund local manufacturing and expand farming. In contrast, South Africa's manufacturers, which are among the most developed in Africa, could quickly expand outside their usual export markets and into West and North Africa, giving them an advantage over manufacturers from other countries, Ashbourne said. The presidents of both countries are attending the summit. The vast difference in countries' economic heft is another complicating factor in negotiations. Nigeria, Egypt and South Africa account for over 50% of Africa's cumulative GDP, while its six sovereign island nations represent about 1%. "It will be important to address those disparities to ensure that special and differential treatments for the least developed countries are adopted and successfully implemented," said Landry Signe, a fellow at the Brookings Institution's Africa Growth Initiative. Regulations governing rules of origin, removal of non-tariff barriers and the development of a payments and settlements system are expected to be unveiled at the summit.

Economic 'game changer'? African leaders launch free-trade zone

The African Union launches the "operational phase" this weekend of a long-awaited trade accord, but analysts say the continent faces an uphill task to transform the pact into reality.

The 55-nation AU, gathering for a summit in Niger, will give the formal push to a deal to phase out tariffs on trade from the Cape of Good Hope to Cairo.

By doing so, say supporters of the African Continental Free Trade Area (AfCFTA), business between African nations will boom.

The economy of Africa, with a GDP of $2.5 trillion today, will reach takeoff just as its 1.2 billion population doubles over the next three decades, they predict.

"It's a remarkable achievement, and one that can even be described as historic," AU Commission chief Moussa Faki Mahamat said Thursday in the Niger capital Niamey.

Backers were given something to celebrate ahead of the summit: on Tuesday, Nigeria, the continent's largest and most populous economy, said it would sign after long holding back.&nbsp;

Talks on free trade began back in 2002, culminating in a deal that in late May crossed the threshold of ratification by at least 22 countries.

That tally is now 25 out of 55 AU members. Benin and Eritrea are the last countries yet to sign.

Major hurdles

The sunny mood may well sour when the AU is confronted with the realities of the task at hand, observers say.

"Negotiations on some very important points have not yet been completed," said Trudi Hartzenberg, director at Tralac, a specialist trade law organisation based in South Africa.

A timetable for lowering customs duties, rules for certifying "Made in Africa" products, and arbitration mechanisms to settle trade disputes are among the hurdles not even close to being resolved.

In its first phase, the zone will eliminate customs duties on 90 per cent of goods.

Tariffs will be scrapped over a longer period on seven per cent of "sensitive" goods -- a potential means for a country to protect national sectors from foreign imports, say analysts. Tariffs on the remaining three per cent of goods will remain in place.

At the Niamey meet, the AU is expected to choose the location of a secretariat, with Ghana and eSwatini (formerly Swaziland) among the names doing the rounds.

Critics say many economies are hugely dependent on agriculture or on primary resources such as minerals and forestry, and lack the diversity necessary for vibrant two-way trade.&nbsp;

The share of trade done by African nations with each other is very low -- just 16 per cent, compared to 65 per cent among European countries.

"Africa trades with the rest of the world, but it does not trade with itself," said Jakkie Cilliers from the Institute for Security Studies, a South African-based think tank.

'No magic bullet'

AfCFTA fans claim this slender intra-African trade could be boosted by 60 per cent within a few years.

But others caution that benefits on this scale will take far longer to achieve.

"The (free trade) agreement between Canada and the EU took seven years to negotiate and that was just between one country and a fairly economically integrated group of 28 states, not 55 countries, each at very different stages of economic development," said Elissa Jobson at the International Crisis Group (ICG) think tank.

Cilliers said the AfCFTA would take "about a decade to produce its positive effects".

"This is not a magic bullet," he said.

The average tariffs on intra-African trade, of 6.1 per cent, are higher than on exports to non-African countries.

This discrepancy is cited as a reason why intra-African trade is so low.

But, say observers, import duties are not the only obstacles to freer business.

Corruption, decrepit infrastructure and lengthy waiting times at borders are also hefty barriers.

In a report published in April, the International Monetary Fund said "improving trade logistics, such as customs services, and addressing poor infrastructure could be up to four times more effective in boosting trade than tariff reductions".

The African Union launches the "operational phase" this weekend of a long-awaited trade accord, but analysts say the continent faces an uphill task to transform the pact into reality.

The African Union launches the "operational phase" this weekend of a long-awaited trade accord, but analysts say the continent faces an uphill task to transform the pact into reality. The 55-nation AU, gathering for a summit in Niger, will give the formal push to a deal to phase out tariffs on trade from the Cape of Good Hope to Cairo. By doing so, say supporters of the African Continental Free Trade Area (AfCFTA), business between African nations will boom. The economy of Africa, with a GDP of $2.5 trillion today, will reach takeoff just as its 1.2 billion population doubles over the next three decades, they predict. "It's a remarkable achievement, and one that can even be described as historic," AU Commission chief Moussa Faki Mahamat said Thursday in the Niger capital Niamey. Backers were given something to celebrate ahead of the summit: on Tuesday, Nigeria, the continent's largest and most populous economy, said it would sign after long holding back. Talks on free trade began back in 2002, culminating in a deal that in late May crossed the threshold of ratification by at least 22 countries. That tally is now 25 out of 55 AU members. Benin and Eritrea are the last countries yet to sign. Major hurdles The sunny mood may well sour when the AU is confronted with the realities of the task at hand, observers say. "Negotiations on some very important points have not yet been completed," said Trudi Hartzenberg, director at Tralac, a specialist trade law organisation based in South Africa. A timetable for lowering customs duties, rules for certifying "Made in Africa" products, and arbitration mechanisms to settle trade disputes are among the hurdles not even close to being resolved. In its first phase, the zone will eliminate customs duties on 90 per cent of goods. Tariffs will be scrapped over a longer period on seven per cent of "sensitive" goods -- a potential means for a country to protect national sectors from foreign imports, say analysts. Tariffs on the remaining three per cent of goods will remain in place. At the Niamey meet, the AU is expected to choose the location of a secretariat, with Ghana and eSwatini (formerly Swaziland) among the names doing the rounds. Critics say many economies are hugely dependent on agriculture or on primary resources such as minerals and forestry, and lack the diversity necessary for vibrant two-way trade. The share of trade done by African nations with each other is very low -- just 16 per cent, compared to 65 per cent among European countries. "Africa trades with the rest of the world, but it does not trade with itself," said Jakkie Cilliers from the Institute for Security Studies, a South African-based think tank. 'No magic bullet' AfCFTA fans claim this slender intra-African trade could be boosted by 60 per cent within a few years. But others caution that benefits on this scale will take far longer to achieve. "The (free trade) agreement between Canada and the EU took seven years to negotiate and that was just between one country and a fairly economically integrated group of 28 states, not 55 countries, each at very different stages of economic development," said Elissa Jobson at the International Crisis Group (ICG) think tank. Cilliers said the AfCFTA would take "about a decade to produce its positive effects". "This is not a magic bullet," he said. The average tariffs on intra-African trade, of 6.1 per cent, are higher than on exports to non-African countries. This discrepancy is cited as a reason why intra-African trade is so low. But, say observers, import duties are not the only obstacles to freer business. Corruption, decrepit infrastructure and lengthy waiting times at borders are also hefty barriers. In a report published in April, the International Monetary Fund said "improving trade logistics, such as customs services, and addressing poor infrastructure could be up to four times more effective in boosting trade than tariff reductions".

Step by step, Africa inches toward 'historic' free trade zone

India has extended a grant of $15 million to Niger to help it organise the African Union (AU) summit.&nbsp;

The summit will take place from July 7-8&nbsp;in its capital Niamey. The grant assistance was handed over to Niger deputy foreign minister Lamido Ousseini Bala Goga Salamatou by the Indian envoy to Niger Rajesh Agarwal.&nbsp;

This is the first time the country is hosting the AU summit and India's support was in response to a specific request made by the Niger government. The AU summit is expected to launch the historic African Continental Free Trade Area (AfCFTA).

The Indian assistance comes even as the government&nbsp;increases its engagement with the continent.&nbsp;

New Delhi in October 2015 had hosted the India-Africa summit that had seen&nbsp;maximum participation of African head of states and governments. Niger President Issoufou Mahamadou had participated in the 2015 summit and also visited India in March 2018 to attend the Founding Conference of International Solar Alliance.&nbsp;

India opened its mission in Niamey in 2009 and has provided Lines of Credit worth $ 96.54 million to Niger for projects in transport, electrification, solar energy and potable drinking water. &nbsp;

New Delhi is also establishing Mahatma Gandhi International Convention Centre (MGICC) in the country and is likely to host meetings associated with the upcoming AU summit.

India has extended a grant of $15 million to Niger to help it organise the African Union (AU) summit. The summit will take place from July 7-8 in its capital Niamey.

India has extended a grant of $15 million to Niger to help it organise the African Union (AU) summit. The summit will take place from July 7-8 in its capital Niamey. The grant assistance was handed over to Niger deputy foreign minister Lamido Ousseini Bala Goga Salamatou by the Indian envoy to Niger Rajesh Agarwal. This is the first time the country is hosting the AU summit and India's support was in response to a specific request made by the Niger government. The AU summit is expected to launch the historic African Continental Free Trade Area (AfCFTA). The Indian assistance comes even as the government increases its engagement with the continent. New Delhi in October 2015 had hosted the India-Africa summit that had seen maximum participation of African head of states and governments. Niger President Issoufou Mahamadou had participated in the 2015 summit and also visited India in March 2018 to attend the Founding Conference of International Solar Alliance. India opened its mission in Niamey in 2009 and has provided Lines of Credit worth $ 96.54 million to Niger for projects in transport, electrification, solar energy and potable drinking water. New Delhi is also establishing Mahatma Gandhi International Convention Centre (MGICC) in the country and is likely to host meetings associated with the upcoming AU summit.

India extends $15 million to Niger for African Union summit