A Chat With Alan Kyeremanteng On ACFTA - African Continental Free Trade Agreement

Ghana will not face revenue shortfall if it implements the African Continental Free Trade Agreement, trade minister says

Ghana’s Minister of Trade and Industries, Mr Alan Kyerematen has debunked reports from the International Monetary Fund (IMF) that the country stands a risk of facing revenue shortfall if it implements the African Continental Free Trade Agreement (ACFTA) this year.

According to him, the IMF must check its facts vis-à-vis its assertion that the country risks facing revenue shortfall if it implements the ACFTA, a move which according to the minister is aimed at rather helping the economic growth of the country.

The International Monetary Fund (IMF)recently said Ghana could face revenue shortfalls if the country implements the ACFTA this year.

Even though the IMF admitted that the implementation of the agreement could boost trade on the continent, it (IMF) said the deal could also affect earnings and employment opportunities in some sectors of the economy.

The Country’s Representative for the IMF, Albert Touna Mama made the revelation at the launch of the IMF’s spring 2019 Regional Economic Outlook.

He said, “Our policy message is to try to put the necessary infrastructure or policies [in place] to shelter part of the population that will be affected”.

But Mr Kyerematen says he is surprised at the IMF's stands on the agreement.

While speaking at the ‘Meet the Press’ series in Accra, he stressed that “if the IMF is saying that the ACFTA is going to cause a major challenge for us in terms of job creation, for me it doesn’t add up.”

He added that “This is to be the single most important stimulus for investment in Africa because everybody is targeting the African market, but if the investor knows that by locating in an African country, he can export duty-free, quota-free, he’ll bring the investment to the country, so, how could that be a disincentive in terms of employment creation? Please check your facts or ask the IMF to check their facts.”