The Chief of Staff at the Africa Continental Free Trade Area (AfCFTA) secretariat, Silver Ojakol has described the impact of the pandemic on imports as a bolster to intra African integration.
According to him, the pandemic also gave the process added impetus, as African countries began officially trading under a new free trade area on January 1, 2020, after it was stalled by the global COVID-19 virus.
“We saw the impact on our economies of the disruption of imports due to the pandemic,” he said. “So there’s actually been an increase in political will to boost intra-African integration.”
Almost every single African country with the exception of Eritrea has signed on to the AfCFTA framework agreement, and 34 have ratified it.
On the other hand, observers such as W. Gyude Moore, a former Liberian minister who is now a senior fellow at the Center for Global Development comments the actual labor commences now.
“I would be surprised if they can have everything set up within 24 months. For long-term success, I think we’ll need to look at how long it took Europe. This is a multi-decade process.”
The African Continental Free Trade Area (AfCFTA) aims to bring together 1.3 billion people in a $3.4 trillion economic bloc that will be the largest free trade area since the establishment of the World Trade Organization.
Supporters say it will boost trade among African neighbors while allowing the continent to develop its own value chains. The World Bank estimates it could lift tens of millions out of poverty by 2035.
Contrarily, obstacles ranging from permeating entrenched protectionism of some of its members – must be overcome if the bloc is to reach its full potential.
Speaking about free trade agreements, one time, renowned Economist, Paul Krugman noted that, “contrary to what some seem to believe, textbook economics doesn’t say that free trade is a win-win for everyone. Instead, trade policy involves very real conflicts of interest. But these conflicts of interest are overwhelmingly between groups within each country, rather than between countries.
“Free trade is not the main cause of economic difficulties… The slowdown in growth is almost entirely due to internal causes.”
Meanwhile, 41 of the zone’s 54 member states have submitted tariff reduction schedules.
Members must phase out 90% of tariff lines over five years for more advanced economies or 10 years for less developed nations. Another 7% considered sensitive will get more time, while 3% will be allowed to be placed on an exclusion list.
President Akufo-Addo during the launch of the African Continental Free Trade Area (AfCFTA), revealed that it helps African countries revive their economies after the distressing effects of the coronavirus pandemic.
Speaking at the first African Continental Free Trade Area start trading webinar, President Akufo-Addo said, Africa is poised for growth and development.
“We are determined to enter into a new era of industrialization and have access to a single continental market. We will be a game-changer on that market as it will be the key to the ability of businesses on the continent to recover from the adverse effect of COVID-19 and proceed to grow in leverage of the new opportunities available to the market.”
