African leaders agree to start continental free trade zone negotiations

African leaders have agreed to start negotiations over setting up a continental free trade zone by 2017, following a deal signed last week to create a large free trade area covering 26 African nations.

The current AU Chairperson and Zimbabwean President Robert Mugabe, on Monday announced that "the Continental Free Trade Area (CFTA) negotiations open", on the sidelines of the AU summit in Johannesburg, South Africa.

"I am pleased that we launch the negotiations after three regional groups signed a free trade agreement also this month," Mugabe said.

A free trade zone is essential in promoting mobility of goods and people within the continent, he added.

Three trade blocs -- the Southern African Development Community, the Common Market for Eastern and Southern Africa and the East African Community -- have signed an pact, known as The Tripartite Free Trade Area (TFTA), spanning an area from Cairo to Cape Town.

The AU has set the target of 2017 for the free trade agreement to be implemented, under which African nations are expected to reduce trade barriers amongst themselves by reducing export and import duties and removing visa requirements in some cases.

Kenyan President Uhuru Kenyatta, hailed the start of the negotiations as a critical step towards "reducing poverty and doubling the continent's economic development."

"It means the African Union is meeting to discuss what to do with the continent's prosperity as opposed to what to do with the problems that we suffer," Kenyatta said.

Meanwhile, AU Commissioner for Trade and Industry, Fatima Acyl, said the continental body is aware of the challenges in negotiating such an agreement.

"There are some rich resourced countries, landlocked countries and small island countries. However, with enough political will and our knowledge of the benefit of the continental free trade area, we will prevail," said Acyl.

However, analysts say, to achieve greater integration, a large sum of money is needed to improve the state of railway lines, roads and other infrastructure.

Countries also have to agree on product quality to ensure a general standard is met in manufacturing goods being traded.

It also remains to be seen how countries with weaker economies prevent their manufacturing industries from being strangled by economic giants like South Africa and Nigeria. Endi