The whole of Africa, especially trade enthusiasts were thrown into a jubilant mood on Monday, February 15, 2021, when the General Council of the WTO announced Dr. Ngozi Okonjo-Iweala of Nigeria as the organization’s seventh Director-General.
Whilst Africa’s wait for the top-job of the largest trade organization has come to an end, it also marks a historical milestone in the history of the WTO as the first woman to assume the Director-General position, effective March 1, 2021.
Despite assuming the office at a time where there are several trade tensions among countries, it is expected that her presence will drive the African agenda in world trade matters. Africa represents a key bloc within the WTO as it accounts for nearly 27% of the membership and 35% of members from developing countries. Experts say her appointment will add a voice to the negotiation table of the African continent which has been very minimal.
Additionally, her appointment is expected to whip up the enthusiasm in Africans in the WTO as her presence shows that the continent is a force to reckon with as far as trade is concerned. This is because, many are of the view that the WTO is only relevant for a few powerful nations, whilst the majority of the countries despite being fully initiated as members, assume the status of ‘observers’.
More significantly, an African assuming the top position of the WTO could never have been better at any other time than now when the African Continental Free Trade Area (AfCFTA) has come into force on January 1, 2021.
The AfCFTA provides the opportunity for Africa to create the world’s largest free trade area, with the potential to unite more than 1.2 billion people, in a $2.5 trillion economic bloc and usher in a new era of development. Being the largest trade integration in the world, an African head at the WTO will play a vital role in the success of the current Agreement.
One of the priorities of the new AU Chair, President Felix Tshisekedi of the Democratic Republic of Congo (DRC), for the year 2021 is accelerating the operationalization of the African Continental Free Trade Area (AfCFTA) which will help drive trade, investment, and job creation, and enable a stronger and faster recovery.
Coincidentally, in her congratulatory message to the first female Director-General of the WTO, Christine Lagarde, President of the European Central Bank stated that Dr. Ngozi’s “strong will and determination will drive her to tirelessly promote free trade to the benefit of people worldwide”.
Thus, Dr. Okonjo-Iweala’s vast experience in other international positions as an economist makes her very important to the success of the current trade agreement as she is expected to engage with the leadership of the AfCFTA Secretariat and offer her expertise on how to overcome the major obstacles of the African trade integration. Her political acumen and extensive negotiating skills could contribute towards restoring the multilateral trade agenda.
Her negotiation skills will also be relevant in persuading the remaining 18 out of the 54 countries to ratify the agreement to ensure that no country in the African continent is left behind.
The AfCFTA which requires member states to remove tariffs from about 90% of goods will encourage easy access to commodities across Africa. According to the United Nations Economic Commission for Africa, by 2022, this agreement will increase intra-African trade by over 52%.
Currently, intra-Africa trade is limited to 15% of Africa’s total trade, indicating that the intra-regional value chain is very weak in contrast to Asia, where it stands at 61% and in Europe with 67%, according to the UNCTAD.
Now expectations are high as the hope of Africa to promote its free trade agenda has gained a major boost following the appointment of one of her most celebrated and illustrious daughters into a position that oversees trade activities in the world.
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