The Secretariat responsible for coordinating the implementation of the ECOWAS Brown Card Insurance Scheme, has said it is engaging with key stakeholders across the continent to ensure that the insurance scheme remains robust.

This follows the African Continental Free Trade Agreement which comes into force this month. The African Continental Free Trade Agreement was signed by 44 African countries to create a tariff free continent that can grow local business, boost Intra-Africa trade, boost industrialization and create jobs.

The Secretary General of the Bureau of the ECOWAS brown card insurance scheme, Mr. Winfred Kwasi Dodzih said the African Continental free trade agreement legally came into effect at midnight, but the countries that have signed up have until July to work out the details of how it will work.

Mr. Dodzih said a lack of preparation can negatively impact the ECOWAS brown card insurance scheme, adding that the card will aid in free movement within and outside the country.

“This will really impact on the Ecowas brown card because as you rightly said, there will be a lot of free movement, not only within the regional block but outside the region,” he said.

Mr Dodzih hinted that the Secretariat has started negotiating with African Trade Insurance Agency (ATI) and also with sub regional groupings to look into how they can come together to face challenges ahead.

Background

The African Continental Free Trade Agreement legally came into effect on May 30 as countries that have signed up have until July to work out the details of how it will work.

So far, only 24 African countries out of 54 have ratified the trade agreement with, among others, Africa’s largest economy, Nigeria yet to sign.

The agreement is aimed at creating a single continental market for goods and services with free movement of goods, people and investments, similar to the European Union.

So far, experts say the CFTA will boost trade values in Africa and strengthen the continent’s position in global trade. Also, the UN’s Economic Commission for Africa estimates that the agreement has the potential to boost intra-Africa trade by 53%.

Burkina Faso became the latest country to join when it signed up on Wednesday.

Currently, Africa trades far less with itself than it does with the rest of the world.

The African Union says if all countries signed up it would become the largest free trade area since the formation of the World Trade Organization.