This archive report was first published on 28 December 2019.
As the African continent embarks on a new era of economic integration, 2019 stands out as a pivotal year in recent history. The African Continental Free Trade Area (AfCFTA) agreement, signed by 54 out of 55 African states, aims to create a borderless trade environment.
According to the United Nations Economic Commission for Africa (Uneca), the implementation of AfCFTA could see intraregional trade in Africa grow to $70 billion annually, with intraregional trade accounting for half of exports by 2040.
However, the devil lies in the details. AfCFTA's objectives go beyond boosting trade, aiming to create a culture of openness and intercultural intercourse. To achieve this, it is complemented by initiatives such as the protocol of free movement of people, right to residence and establishment, and the Single African Air Transport Market (SAATM).
Despite progress, many African countries remain closed to fellow Africans while being more open to outsiders. By October, only 28 countries had ratified AfCFTA, and a smaller number had signed the principle of free movement of people. SAATM is making slow progress, with some countries failing to appreciate the benefits of air transport.
For Africa to truly prosper, it must conquer its fears and implement the AfCFTA agreement. The story of intra-African trade shows that with just a little more effort, the continent could be more prosperous. At 42%, the percentage of manufactured goods in which African countries trade with each other is higher than the 15% to other regions.
It is still some months before AfCFTA comes into force. In the intervening period, there is a lot of work to do. The policy and physical infrastructure that will support free trade needs to be built, and barriers to free movement of people and commerce need to be dismantled rapidly.
