July 08, 2019

Africa Continental Free Trade Area: History in the making

topic:	Economy
editor:	Bob Koigi

The outlining of the historic Africa Continental Free Trade Area on Sunday has heralded the coming into force of the largest free trade area globally, promising jobs, economic growth, free movement of goods and services and prosperity for a continent whose contribution to global trade is still negligibly low.

Merging 55 countries into a single market of 1.2 billion people and a combined GDP of $2.5 trillion will now bolster the minuscule intra African trade, which has been blamed for the snail-paced growth of some key sectors like manufacturing and agro-processing – a trade market that has seen Africa export its value, which it then pays high premium on in finished products.

The enthusiasm surrounding the plan is evident, especially among the political class which is a good thing for the pact. But the greatest task is to now convert and maintain this enthusiasm while actualising this momentous dream. There are still grey areas including endemic protectionist policies that have hitherto hindered free trade in Africa and which explain why economic giants were largely hesitant to commit to the trade deal.

Prohibitive import duties, dilapidated infrastructure, tedious procedures, barriers at the borders and corruption remain Africa’s Achilles heel.

But while the journey ahead is long and winding, the prospects are promising and the dream of a united Africa is closer now more than ever. The trade accord, the envisioned African passport and the Single African Air Transport Market will foster sustainable development for the continent and deepen integration among its people in ways never experienced before the world over. The onus is on the continent to make this work.