One of the key aspects of the AfCFTA is that African countries that have signed and ratified this Agreement will phase out tariffs on 97% of products imported from other African countries (except Eritrea, that never signed the agreement). The progressive reduction - until abolition - of customs duties on such goods will make them less expensive and therefore more attractive for African consumers. This is supposed to lead to an increase in their demand which in turn will stimulate growth in trade among African countries. However, the AfCFTA does not eliminates other internal taxes that are levied by African countries on imports. This is the case of the VAT and excises for instance. Therefore, if on one hand the AfCFTA will cause African countries to lose revenue from customs duties, on the other hand, revenue from domestic taxes will increase because the latter will hit larger volumes of products entering through their borders. But what about export duties? Will they also be eliminated by the AfCFTA?

Leggi tutto...

On June 16, 2023, at the 12th inter-ministerial council meeting of the Central Corridor Transit Transport Facilitation Agency (CCTTFA), the Republic of Malawi's submitted a request to join the Central Corridor that was approved by the other corridor members. On the same occasion, a call was made to the Republic of Zambia to become a member of the Central Corridor as well. The meeting was also the occasion to discuss other major projects planned under the next year's budget, including the coordination of the tripartite railroad project linking Tanzania, Burundi and the Democratic Republic of Congo (DRC) and the conduction of a series of feasibility studies for the construction of safe parking areas along the Rwandan section of the central corridor.

Leggi tutto...