Turning a dream into reality

"Progress is always guided by something that transcends everyday life … and sometimes the dreams of generations come true" Herman Van Rompuy

The African Continental Free Trade Agreement (ACOA) was hailed as a turning point in African integration. In line with the fundamental mission of the African Union (AU) of a more integrated Africa, AfCFTA seeks to establish a continental market, fostered by the free movement of people, capital, goods and services. services, in the hope of strengthening economic integration and promoting agricultural development. food security, industrialization and structural economic transformation. Cyril Ramaphosa, President of South Africa, echoed this statement at the launch of AfCFTA:

"The entry into force of the Continental Free Trade Agreement in Africa fundamentally means that Africa achieves the dreams of the founding fathers of the OAU more than 60 years ago, when they conceptualized the formation of an Africa. integrated … that is united and go to work as an economic bloc. "

This agreement is a bold step in the realization of this dream and inspires the hope of a dynamic era in intra-African trade. A report from the United Nations Conference on Trade and Development (UNCTAD) estimated that ALECAF could boost trade on the continent by 33%, as it offers access to a potential market for 1.2 billion people with a combined GDP of about 3.2 billion[1]. One of the remarkable aspects of the proposed Agreement is its sensitivity to the specificities of development conditions at the national level. Given the fact that countries are experiencing different degrees of industrial and general economic development, the agreement promises "mutually beneficial rules" that will govern trade between African countries. The deal can change the game in world trade and can eventually redefine Africa's trade with the rest of the world.

However, concerns remain as to how the agreement would be implemented and its potential consequences. The International Monetary Fund (IMF) has issued a warning, expressing concern over the possibility of uneven effects and potential revenue losses in countries with high export tariffs.[2] . In addition, along with many other regional initiatives on the continent, there is skepticism about the potential of AfCFTA to really take off and sustain itself. Nigeria, for example, dragged its feet before finally signing the agreement, expressing concerns about porous borders and the potential for dumping in its market.[3].

In addition, infrastructural and institutional bottlenecks continue to impede the movement of people across the continent. Recent xenophobic attacks in South Africa and reports of harbadment of African migrants in countries such as Kenya and Ghana may undermine attempts to create a continent-wide market. Although the current trend towards a visa-free continental entry in many African countries is laudable, the most important issues regarding long-stay visas – necessary for businesses – require special attention.

Amidst the uncertainty of what one can call an ambitious initiative on the part of the AU, it remains to answer questions and speculations about how the US government can help. AfCFTA can really make a difference by creating opportunities for member countries. What would make AfCFTA work? I focus on three areas.

First, it is necessary to believe strongly in the project, willing and able to guarantee its implementation. These believers must critically examine the seriousness with which this initiative is taken by other African countries. A lesson could be drawn from the experience of the European Union (EU) in the 1950s, during which supporters of the common market have introduced it as one of the building blocks of peace and stability. The six major European countries (Belgium, France, Germany, Italy, Luxembourg and the Netherlands) that signed the EU agreement firmly believed in the idea of ​​integration as a means of prevent new wars on the continent and had broad money idea across the continent[4].

Second, the role of political entrepreneurs at the national and regional levels in promoting the program is key to AfCTA's success. The initiative will probably be better accepted if it resonates with local actors and gives them the means to act, which then allows them to mobilize national support for them or to advocate for governments. The successful formulation of the idea by the political entrepreneurs in order to present the benefits as an attractive and potential value for the African countries can greatly contribute to the translation of the AfCTA into a transformation program.

Last but not least, the importance of institutions can not be overemphasized. While it is also commendable that new continental institutions emerge as a result of this new trade agreement, it is important that national and regional institutions align properly with the aspirations of continental regulatory institutions. A continental institution will be powerless without effective national counterparts. The power of ideas is determined by material and institutional dynamics. For the idea of ​​a continental free trade agreement to be a success, it is necessary to provide for a homogeneous institutional structure between the national and continental levels. Establishing a "transparent, predictable and mutually beneficial" market requires both commitment and institutional support from the key players.

The idea of ​​an integrated market is perhaps the catalyst that the AU needs to facilitate integration on the continent. However, the power of this idea can be considerably strengthened when it is able to mobilize powerful supporters at the national level, when it manages to achieve a synchronism between the national level and the continental institutions and when the institutional obstacles social rights to free movement of persons are abolished. An integrated African market can help create value for a continent previously disadvantaged in world trade.

[1] unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2128

[2] https://www.imf.org/~/media/Files/Publications/REO/AFR/2019/April/…/ch3.ashx

[3] www.theafricareport.com/15024/nigeria-agrees-to-sign-up-to-african-free-trade-zone/

[4]

Dr. Esther N. D. Darku is a CDD-Ghana D & D Fellow in International Trade and Domestic Competition. She holds a PhD in Sociology from the University of Fort Hare, South Africa and a MA in African Studies from the University of Ghana. Researcher CODESRIA-African Pathways, she works as a part-time research advisor at the School of Graduate Studies of the Ghana Institute of Journalism (GIJ).