With the commencement of the implementation of the African Continental Free Trade Area (AfCFTA) pact effective Jaunary this year,, the Tax and Investment Desk of Centurion Plus has launched the AfCFTA Impact Report.
The report is published to provide critical business impact assessment, especially for multinational companies and investors conducting business in Africa under AfCFTA protocols.
According to the publishers, the report is a tailored report for each entity and will be powered by Centurion’s fully integrated resource base of country-qualified and internationally mobile professionals in all 54 countries in Africa.
Specifically, the Impact Report is a guide to what businesses need to know about the AfCTA pact, including its impact on movement and provision of goods and services and the respective taxation outcomes; business optimization opportunities; customs and immigration; employment, including movement of personnel and potential changes in permit laws and regulations.
Other areas it is designed to provide guidance are intellectual property; trade and investment advantages; potential anti-trust and market access issues; potential environmental obligations
Legal issues surrounding mergers and acquisitions; and dispute resolution
The guide will assist businesses and investors to identify the major opportunities provided by the AfCFTA, while also identifying the blind spots and shortcomings in terms of the business models to adopt.
While as an Africa-focused Group, we will provide updates and new resources to help you keep ahead of the developments in the AfCFTA. What we have launched here ensures that businesses take full advantage of the opportunities offered by the AfCFTA agreement and transact end-to-end in Africa (including in ultra-frontier markets), with absolute confidence and at the most competitive business cost.
By its fiscal thrusts, the AfCFTA pact eliminates tariffs on 90 per cent of goods produced on the continent, tackles non-tariff barriers to trade and guarantees the free movement of persons. It consolidates a market of 1.2 billion people and a combined Gross Domestic Product (GDP) of $2.5 trillion.
While the private sector in Africa has been grappling with dealing with the effects caused by the COVID-19 pandemic, the AfCFTA pact provides for key benefits such as open borders, improved contracts, and better structured value chains. The private sector being a key stakeholder and a major beneficiary of the AfCFTA has a lot that it can benefit from the AfCFTA.
It also provides an opportunity for businesses to expand into African markets through the liberalization of markets and the progressive reduction of access barriers within the continent. In addition, businesses can take advantage and participate in supporting the diversification of African economies away from low-value-added products and commodities as well as in the development of regional value chains.
In addition, the agreement enhances competitiveness at the industry and enterprise level through exploitation of opportunities for scale production, continental market access and better reallocation of resources.