African heads of states and governments during the African Union Summit
for the agreement to establish the Continental Free Trade Area in
Kigali, Rwanda, on March 21, 2018. AFP PHOTO
Summary
- The game changer will be the commitment with which the agreement is implemented across the continent.
- A study of regional integration efforts within Africa reveals that despite public statements, there are still many barriers that countries place on the path of increased trade with their neighbours.
This past week very positive news reverberated throughout the African continent from Kigali, the capital city of Rwanda.
The
news was the signing by 44 African States of the signing of the
Continental Free Trade Area (CFTA). That action is monumental for it
fulfils a dream that the founding fathers of Africa had for Africa.
One
of the founding fathers was Kwame Nkurumah, the first President of
Ghana, famous for the quote, “Seek ye first the political Kingdom and
all else shall be added unto you.” Nkurumah was also a strong advocate
for African Unity, arguing that such a unity, “would have an overall
economic planning on a continental basis which would increase the
industrial and economic power of Africa.”
Nkurumah’s
attempt at this project was not successful. Instead the founding fathers
opted to establish the Organisation of African Union which shied away
from robust and ambitious plans for the continent.
In 1980, The Lagos Plan of Action was developed to provide a
pathway to Africa’s economic development. The Plan urged Africa to move
away from overreliance on raw materials as the biggest export and
instead focus on industrialization amongst other initiatives. In
addition, it called for greater continental integration.
Since
its adoption, Africa has pursued an integration agenda. The integration
has been through regional integration blocs, seen as building blocks to
continental integration.
However, the regional blocs
have not been able to fully deliver the dividends required to accelerate
Africa’s economic integration and development, partly due to economies
of scale and also continued challenges of sovereignty and its
accompanied non-tariff trade barriers.
This is the
background against which work over the last several years has been going
on to establish the CFTA pursuance to a resolution by the African Union
Member States in 2012.The discussions, though have been on for long and
trace their roots from the Lagos Plan of Action. The CFTA is expected
to act as a key driver for economic growth, industrialisation and
sustainable development within the continent.
The huge
numbers of countries that signed the CFTA is historic and signals a
determination to enhance unity within the continent and confront the
barriers that have continued to stand on the path of the continent’s
accelerated development. It is also a recognition that continued
reliance on the doctrine of sovereignty in its traditional sense is
inimical to dealing with the challenges that confront Africa’s peoples.
However,
the game changer will be the commitment with which the agreement is
implemented across the continent. A study of regional integration
efforts within Africa reveals that despite public statements, there are
still many barriers that countries place on the path of increased trade
with their neighbours.
The
East African Community is the most advanced in terms of economic
integration in the region. However, businesses still suffer hurdles
placed on their path as they trade within the community. In addition,
the Partner States occasionally view each other with suspicion and take
action which negate both the spirit and commitment under the EAC
integration agenda.
The continent is a player in global
and other trade initiatives. The economic partnership agreements under
the Cotonou Partnership Agreement with the European Union and the Africa
Growth and Opportunity Act (Agoa) initiative with the US are two such
examples.
Despite their existence, Africa has not
truly benefited from the engagements. A strong continental trade
integration agenda will help galvanize Africa’s efforts and place in
global trade.
All the countries in the continent have
to follow the signing process with domestication efforts. Political
commitment must move beyond signature to aligning domestic policies so
as to actualise the commitments under the CFTA. In addition, the
continent has to prioritize resource allocations for the initiatives
under the CFTA.
The demonstration of success must go
beyond lofty reports and statements. It must have tangible impact on the
lives of citizens of the continent.
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