AFRICA IS ONE STEP AWAY FROM ECONOMIC BOOST

Keyisha Leeza Kalengeraye & Albert Paul Moifula

“Probably, this is the time for Africa to develop itself.”

Part of understanding the African dream comes with a price; however, the actions prove that Africans are ready for the African Solution. The March 2018 Summit climaxed all the years of hesitation. With 55 markets in Africa, the continent is engaging in more external deals than internal. According to the International Monetary Fund (IMF), 70% of African trade deals are in the hands of Non-Africans.

The 2020 (World Bank) trade report also estimates that African is in-depth to China and the USA for the next 100 years. This has been the same company questions in the minds of Africans, yet the narrative has been the same for the past two decades. African is becoming the home of unemployed youths and a rising population. Poverty Struck, conflicts inflicted, the African dream could need a new page.

The question of “WHAT IS THE AFRICAN SOLUTION “ was merely impossible to answer. However, there could be light at the end of the tunnel across all 55 states. With over 25 countries that are part of the African Continental Free Trade Area, the AFCFTA is the most prominent African Investment. While it has its challenges, there are widely accepted reasons why the AFCFTA initiative could be the African Solution.

Currently, the AFCTA is said to

• Increase 50% Trade Shares across African Countries between 2020- 2040
• Create the most extensive trade center ( 1.2 Billion People)
• Enable Africa to have a Gross Domestic Product (GDP) of more than 3 trillion USD.
• Develop strengths in Trade in Goods and Services, Investments, Intellectual Property rights, and Competitive policy.
• Solving scarcity amongst member states.
• Establishing a demand for the African Market on a Global Scale.

The Idea of the AFCFTA is ready to boost the African Economy on a Global Scale. Although this massive plan calls for an African party, it does not dispute the many challenges around the AFCFTA. Apart from the high risk of smuggling and abuse, there are currently only 28 Countries in favor of the Trade deal of excluding Nigeria and South Africa, the two largest giant economies in Africa. There are debates as to how resources could be equally distributed. In the view of the Ghanian President (Nana Akufo-Addo), Africa has many challenges that should be given greater priority. However, if the AFCFTA can help bridge the economic gap amongst Africans, leaders should ensure that it is done without selfish gains.

Another major challenge is the trade roads in African. Considering the many conflicts in Africa, having a mega trade center might not be realistic. Though this might be ignored; however, it is essential to note that peace and stability are the driving force to bilateral relations check. By doing so, the AFCFTA will also work in line with the African Sustainable development goals. In comparison between the economic Partnership Agreement (EPA) signed by Japan and Europe, the AFCFTA will also secure Africans’ interest in strategic global Negotiations.

References

[1]: English.bdi.eu. 2020. EU-Japan: World’S Largest Free Trade Zone Unites Partners With Same Values. [online] Available at <https://english.bdi.eu/article/news/world-s-largest-free-trade-zone-unites-partners-with-same-values/#:~:text=Entering%20into%20force%20in%20February,trade%20between%20the%20two%20economies.> [Accessed 14 October 2020].

[2]: Hammond, A., 2020. Benefits Of The Afcfta — Africa’s Gateway Agreement To Economic Prosperity — Alexander C. R. Hammond. [online] African Liberty. Available at: <https://www.africanliberty.org/2019/03/06/benefits-of-the-afcfta-africas-gateway-agreement-to-economic-prosperity/> [Accessed 14 October 2020].

[3]: Au.int. 2020. [online] Available at: <https://au.int/sites/default/files/treaties/36437-treaty-consolidated_text_on_cfta_-_en.pdf> [Accessed 14 October 2020].

[4]: IMF. 2020. The African Continental Free Trade Area: Potential Economic Impact And Challenges. [online] Available at: <https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2020/05/13/The-African-Continental-Free-Trade-Area-Potential-Economic-Impact-and-Challenges-46235> [Accessed 14 October 2020].