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The African Continental Free Trade Area (AfCFTA) Secretariat and the U.S. National Bar Association (NBA) have formalized a partnership aimed at improving legal frameworks for small businesses and expanding economic opportunities across Africa.
The memorandum of understanding (MoU), signed this week, will leverage tools such as the Pan-African Payment and Settlement System (PAPSS) and gender-focused trade protocols to simplify cross-border commerce and reduce transaction barriers.
Under the agreement, the NBA—a prominent U.S. organization of African American lawyers—will provide legal support to African SMEs navigating trade regulations, intellectual property disputes, and compliance issues. Officials said the collaboration will prioritize the AfCFTA’s Protocols on Women and Youth in Trade to ensure underrepresented groups benefit from continental integration efforts. PAPSS, a digital payment platform operational since 2022, is expected to mitigate currency conversion challenges and lower transaction costs for businesses.
The pact aligns with the AfCFTA’s broader goal to increase intra-African trade, which currently represents just 17% of the continent’s total commerce. By standardizing dispute resolution mechanisms and commercial laws, the initiative seeks to attract diaspora investment and improve investor confidence.
Africa’s trade ambitions have long been hampered by fragmented legal systems, a legacy of colonial boundaries and divergent national regulations. The AfCFTA-NBA partnership reflects a strategic effort to address these gaps, mirroring past regional agreements like the 2018 African Union Free Movement Protocol, which struggled with inconsistent implementation. Legal harmonization is critical for the AfCFTA’s vision of a unified market encompassing 1.7 billion people by 2035.
Diaspora engagement remains central to this strategy. While remittances to Africa consistently outpace foreign direct investment, converting these flows into structured trade participation requires enforceable legal safeguards. The NBA’s involvement could help bridge this gap, though challenges persist in extending services beyond urban centers to rural SMEs. Success may depend on aligning high-level policy with grassroots needs—a balance that will define the AfCFTA’s trajectory in the coming decade.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/afcfta-u-s-bar-association-sign-pact-to-strengthen-african-trade/
