This archive report was first published on 16 July 2019.
On July 16, 2019, African leaders made history by launching a continental Free Trade Area (FTA), uniting 1.3 billion people and creating a Sh349 trillion economic bloc. The International Monetary Fund hailed the FTA as a potential 'economic game changer' that boosted growth in Europe and North America.
However, significant challenges stand in the way of economic prosperity. Poor road and rail networks, corrupt bureaucracies, and political instability hinder business growth. Moreover, the continent's leadership must be wary of China and India, which have expressed ambitions to become economic superpowers.
China's Belt and Road initiative has raised eyebrows, as it may tie African countries in an impoverishing relationship with China for decades. The Asian nation often finances and carries out oil and minerals exploration and surveys, but its terms are concerning. It demands the right to take over valuable State assets in the event of default, which could lead to Chinese firms penetrating Africa's hinterland and ferrying out raw materials.
Leaders must scrutinize contracts with Asian countries, ensuring they do not compromise Africa's economic interests. The continent's economic future hangs in the balance, and its leaders must navigate these challenges carefully.
