The Southern African Development Community (SADC) considers that non-tariff barriers, prevent the successful implementation of the African Continental Free Trade Area.
In SADC's view non-tariff barriers must be eliminated to catalyze internal trade, both regionally and continentally.
Speaking at the high-level conference of African Union stakeholders on the African Continental Free Trade Area held in Lilongwe, Malawi, the SADC Executive Secretary said that to achieve the stated goals and benefits, the implementation of this strategy will require hard work, determination and focus.
Elias Magosi said it is essential that SADC member states, take note of the importance of robust structural transformation as the implementation of this new trade strategy is pursued.
For Magosi, the limited industrial base of most African countries, which depend on trade in primary goods mainly from agriculture and extractive industry, in addition to poor facilities that hinder trade facilitation throughout Africa, are among several factors that may limit the benefits in this new trade agreement.
The African Union's head of mission for the Southern Africa regional office, Jean Pierre, called the African Continental Free Trade Area agreement one of the flagship projects of Agenda 2063 and one of the cornerstones of Africa's integration.
Pierre said that this trade initiative, will diversify intra-African trade, as it will increase the ratio of industrial goods to extractive goods and natural resources, in favor of industrial goods.
Acting United Nations Resident Coordinator Rudolf Schwenk said that to successfully exploit the opportunities this trade agreement offers, Malawi and many other countries in the region need to continue to make their industries more competitive.
He said that countries need to build a competitive productive base that produces goods and services that can compete in the international market in several dimensions.
The African Continental Free Trade Area agreement, will create a single market for goods and services for an estimated 1.2 billion people, increase trade between African nations, and create a gross domestic product of more than $2.5 trillion across all 55 African Union member states.
With its full ratification, it will become the world's largest free trade area since the creation of the World Trade Organization.