Covid-19 is a “blessing” to the success of the Africa Continental Free Trade Area

The West Africa Regional Director for trade think-thank, CUTS International has indicated that the delay in the implementation of the African Continental Free Trade Area (AfCFTA) as a result of the Covid-19 pandemic augurs well for the continent.

Mr. Appiah Kusi Adomako, in an interview made it known that, the delay has given countries in Africa ample time to prepare for the starting of the policy.

Also, he added that Africans should look at the brighter side of this delay because countries on the continent have been forced by the pandemic to enhance their manufacturing capacities.

“It also gives member countries time to patch up all outstanding issues with regards to rules of engagement and other protocols which have not been finalized.

“This crisis has also allowed them to step up their manufacturing base, waiting for the actual commencement of the trade {(AfCFTA)}. So I think it has in it some blessings and also some curses. And I think that we need to look at the positive side of what this crisis has brought to us.”

In January 2012, at the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union, held in Addis Ababa, Ethiopia, the decision to establish a Continental Free Trade Area by 2017 was agreed upon. However, this deadline was not to be realised.

On 30 May 2019, the Agreement establishing the AfCFTA came into force as 24 countries put forward their instruments of ratification. This made the African Union decide on July 1, 2020 as the date of the commencement of the agreement by the continent. This was not without reluctance by the biggest economy in Africa, Nigeria. Nonetheless, the Nigerian President Muhammadu Buhari signed the landmark agreement at the African Union (AU) summit in Niger.

However, the onset of the coronavirus caused concerns about the timeline of AfCFTA’s implementation.  

In April this year, CUTS International pushed for the deferment of the Agreement.  The think-tank suggested that the implementation date, 1 July 2020, was not practicable.

Mr. Appiah Kusi Adomako said in April 2020 that, “In the light of the global pandemic and what is happening across the world and the continent, it is no longer feasible for the trading to commence under the agreement on July 1st this year, as initially planned. With the closure of most land and sea borders, as well as airports, it would be difficult for people and goods to move freely within the context of the agreement.

“It is undeniable that the virus has already taken a significant toll on lives and the economies across the continent. Projected revenue for African government has been hard hit and majority of businesses are not in a good shape to take advantage of the agreement.”

The aim of the AfCFTA is to bring together all the 55 member states of the African Union. The implementation of this policy will ensure African countries and businesses will have access to a market of more than 1.2 billion people. This will also make Africa’s combined gross domestic product (GDP) rise to more than US$3.4 trillion.

With regards to the number of participating countries, the AfCFTA will be the world’s largest free trade area since the formation of the World Trade Organization. The Economic Commission for Africa (UNECA) has suggested that the AfCFTA has the potential to boost intra-African trade by 52.3 percent by eliminating import duties. This, according to UNECA can also double trade among countries on the continent if non-tariff barriers are also reduced.