This archive report was first published on 13 July 2020.
As African countries prepare to implement the African Continental Free Trade Area (AfCFTA) Agreement, concerns are growing about the pact's ability to deliver its expected benefits amid the Covid-19 pandemic.
Launched in March 2018 in Kigali, Rwanda, the AfCFTA has garnered 54 signatories, aiming to boost intra-African trade and facilitate Africa's development and industrialization. According to the United Nations Economic Commission for Africa (UNECA), the pact has the potential to boost intra-Africa trade by more than 52 percent by 2022.
However, the implementation of the AfCFTA agreement was postponed due to the Covid-19 pandemic, and experts are expressing doubts about the continent's ability to benefit from its ambitious flagship initiative.
Costantinos Bt. Costantinos, an economic advisor to the African Union (AU) and the UNECA, told Xinhua that the AfCFTA has the potential to 'inject ground-breaking momentum' for advancing intra-Africa trade. However, he stressed that countries should brace for the realization of 'enabling factors' necessary for the effective implementation and success of the free trade deal, such as infrastructure connectivity, lifting of economic barriers on cross-border trade, and adjustments to national economic strategies and policies.
Infrastructure connectivity is singled out as the mainstay of an improved trade and economic integration in Africa, with failure to bring about efficient infrastructure integration potentially costing the continent the success of major AfCFTA aspirations.
The African Union has warned that 'the time-frame is tight and the stakes are high' as countries set to start trading under the AfCFTA any time soon. The Institute for Security Studies (ISS) has also cautioned African governments and pan-African organizations to carefully analyze global lessons and think beyond short-termism to effectively tap into the AfCFTA.
Antonio Pedro, director of the UNECA Sub-regional Office for Central Africa, stressed the need to tap into the AfCFTA as 'a much more dependable' option to realize Africa's major economic development and industrialization aspirations amid growing pressure on multilateral platforms.
AU Commissioner for Trade and Industry Albert Muchanga also emphasized that the AfCFTA will allow African-owned companies to enter new markets, contributing positively to the global multilateral system.
July 7, 2019: Chairman of the African Union (AU) Commission Moussa Faki Mahamat (C) announces the operational phase of the African Continental Free Trade Area (AfCFTA) Agreement during the launching ceremony in Niamey, capital of Niger.
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