Ghana's largest port Tema. (PHOTO: XINHUA)

By WANG Xiaoxia

As the world's largest free trade area in terms of the number of participating member states, the African Continental Free Trade Area (AfCFTA) is committed to removing trade barriers and promoting economic integration in Africa, as well as providing unprecedented opportunity for China-Africa collaboration.

Since its official launch in January 2021, AfCFTA has been witnessing stable progress amid challenges such as the global COVID-19 pandemic.

Secretary-General of AfCFTA Secretariat, Wamkele Mene, said last month that a total of 39 countries had already ratified the free trade zone agreement, and the negotiations on the rules of origin had been completed and more than 80 percent of the rules are agreed.

On January 13, the Pan-African Payments and Settlement System (PAPSS) was launched to facilitate cross -border trade and other economic activities among African countries, which is expected to save the continent 5 billion USD of payment costs per year.

Mene said that AfCFTA will further boost trade and investment in Africa and accelerate the industrialization process.

The construction of AfCFTA will not only promote Africa's own development and revitalization, but also bring important opportunities for China-Africa economic and trade cooperation, said Qian Keming, Vice Minister of Commerce of China, while signing a MoU with Mene on establishing an Expert Group on Economic Cooperation in October 2021.

Statistics from the General Administration of Customs of China show that China-Africa trade volume exceeded 250 billion USD in 2021, the highest since 2014. AfCFTA could create a huge market for the free flow of goods and services, which will attract more Chinese investors, said John Gatsi, Dean of University of Cape Coast Business School in Ghana.  With  the  use  of  the  PAPSS, Chinese investors will find it more convenient to trade their goods within the continent, said Gatsi.

Yao Guimei, researcher from Chinese Academy of Social Sciences said that AfCFTA is expected to unleash its potential of growth in multiple sectors and industries. Apart from prioritizing infrastructure construction, many African countries are also expanding new areas such as mobile communications, the digital economy, clean energy, and smart cities. This will bring new opportunities for China-Africa cooperation, said Yao.

Amid the pandemic, Chinese enterprises have shared experience with Africa in terms of pandemic control and economic recovery, with the support of digital technology and digital platforms. Online promotion events and live-streaming have boosted the export of African products to China, and the digital economy is expected to be a new highlight of China-Africa cooperation, said Yao.