The coming on-board of the African Continental Free Trade Agreement ( AfCFTA) is not just a good omen for Africans, but an ominous indication that African leaders are prepared for economic recovery and freedom through a stronger trade ties.
By Aruwan Enoch Peter
Over the years, the continent has suffered unnecessary economic stagnation, due to unhealthy trade rivalry and disharmonized customs policies among member countries. Hope and expectations have been inspired by this noble move, which signifies the continent’s is readiness to speak with one voice.One of the expectations, is that inter-country trades will be boosted, and achievement of appreciable level of economic independence will also be feasible. One cannot agree less with Stakeholders who hold the views, that a sustained operation of AfCFTA will also allow member countries to adequately harness their areas of comparative advantage in goods production and marketing, while reducing the chances of the Western world using Africa as a dumping ground for substandard products. There is also a strong evidence that AfCFTA will spur contemporary continental cooperation that can influence both the context and quality of transnational policy making.
No doubts, this free trade provides opportunity for Africa’s Policies, in the areas of economic development social affairs, trade-flow, health, education, peace and security, to be better unified. To this effect, the African continental free trade Area seem to be one of the most laudable developmental initiatives that have ever emerged from the continent. It may be beneficial for the purpose of information and education to succinctly state that AfCFTA is a free trade agreement amongst 54 out of 55 union, targeting at creating a single and more formidable market for goods and services as well as a single custom union for free movement of persons and capital. This historic, agreement came into force on May 30, 2019 following the ratification by 24 out of the signatory states and entered its operational phase following Heads of Government summit in July, 2019 in Niamey, the Capital of Niger Republic. Furthermore, this agreement has been ascribed with the ability to create a single market platform for all member states, which will undoubtedly promote trade and commerce amongst them. This trade facilitation has been described as a sure path that will also ensure industrialization of the continent. Part of the yearnings of Africans from this agreement as initiated by the African Union in Kigali, Rwanda on March 21, 2018 is a removal of tariffs of about 90% of goods and services , thereby allowing free access to commodities, good and services across the continent without much hitches and barriers.
In addition, it is estimated that AfCFTA agreement will further increase and boost trade by 52.3% across Africa come 2022. AfCTA is equally expected to help in pushing up for considerable trade on the continent. Even though, some are of the view that the initiative may end up in favour of the rich and advantageous African countries against the poor ones. The above views notwithstanding, analysts still see it as an avenue of encouraging competition among member states.Analysis made by economic experts, has also shown that there are tremendous potential for the continent to exploit. Among the hope that has risen by the operation of AfCFTA is the African youth economic opportunities.
Unarguably, AfCFTA has an important part to play in African development drive, through contributing to its income generation, structural transformation, job creation and improving security architecture of the continent.
