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By Ayo Olukanni
The entry into force of the African Continental Free Trade Area (AFCFTA), the agreement of May 30, 2019, is indeed a historic event in the long march of economic integration in Africa. AfCFTA seeks to create a single, unified market, moving intra-African trade from 17% to 52% by 2022 and Africa's gross domestic product from 2.5 billion to 25 billion. dollars from here 2050.
The question on everyone's lips is: "What should Nigeria do, now that the Agreement has come into force and the train is gradually withdrawing from the station". In answering this question, let's leave aside the question of why Nigeria has not signed and why we have hesitated so far on this agreement. The hope is that we sign before the solemn launch of the AfCFTA in Niamey in July 2019, which will mark the beginning of the operational phase of AfCFTA. For now, let's focus on what needs to be done and start getting ready for implementation when we finally join the Accord.
As Africa prepares for the implementation of this historic agreement, some issues deserve our attention. The AfCFTA is designed for the economic integration of Africa in the same way as is evident within the European Union, the Free Trade Agreement. North American Exchange (NAFTA) and the Association of Southeast Asian Nations (ASEAN). Of course, the AfCFTA Framework Agreement still needs to be strengthened, especially with regard to the operational modalities of rules of origin, tariff schedules, tariff concessions, services and investment rules.
Single and unified market
The reality is that the Agreement has finally arrived and the recent stakeholder meeting organized by the Coalition for Dialogue on Africa (CoDA) in Addis Ababa clearly shows that we are on the sidelines of the history of emergence. Africa's single and unified market and only those who are preparing for it will fully exploit their potential. The dialogue between stakeholders on continental trade and strengthening the implementation of the African Continental Free Trade Agreement, organized by the Coalition for Dialogue on Africa, CoDA, S & 39 is held from 27 to 28 May 2019 in Addis Ababa. The event was a political dialogue meeting chaired by former president Olusegun Obasanjo in his capacity as chairman of the CoDA.
The dialogue brought together African policymakers, regional economic communities, RECs and a cross-section of regional economic groupings, regional financial institutions, chambers of commerce, African business leaders and business leaders. other members of the organized private sector. The meeting discussed strategies for successful implementation of the Agreement in pursuit of the agenda of the African Union 2063, the The Africa we want. As dialogue between stakeholders continued, another meeting was also held at the African Union, at the African Union headquarters in Addis Ababa. This was the 15th meeting of the Plenary Negotiating Forum for Trade Negotiators.
It dealt with specific issues of agreement while the quiet diplomatic discussions on the choice of the country hosting the AfCFTA secretariat took place, among seven states wishing to host the secretariat: Egypt, Eswatini, Egypt. 39, Ethiopia, Kenya, Ghana, Madagascar and India. Senegal. Both meetings were of paramount importance because they focused on "implementation", which is the real challenge in ensuring that this continent-wide trade agreement is not just a speech, but that It is achieving its objective of boosting intra-African trade in a positive way. Both meetings concluded that implementation is essential now and that African countries, especially the private sector, should start preparing and putting their homes ahead of them in order to benefit from them. Before continuing, let's go back in history.
While May 30, 2019 is really worth being scarred, the dream of a pan-African single market goes back to the creation of the Organization of African Unity (OAU) in 1963. An economically integrated Africa was part of the envisaged African-African vision. It was the dream of our ancestors and our African pioneers who were getting closer to the political independence of the sixties. The visionary leaders, including the late Dr. Kwame Nkrumah, Ghana's first president and our own golden voice of Africa, Prime Minister Tafewa Balewa, alluded to it. This is what they did when training the OAU, today African Union, on May 25, 1963. They baderted forcefully that the independence of the countries would not be significant without the economic independence of the new African states.
In addition, they spoke about an economic group at the scale of the African continent. The journey to AfCFTA began in the 1960s. This vision has inspired regional economic communities such as the Economic Community of West African States, ECOWAS, the East African Community, ECA, Development Community of Southern Africa, SADC and others. There was also the Lagos Plan of Action (April 1980), the Abuja Economic Treaty adopted on June 3, 1991, and the creation of an African Central Bank which began in May 2015 and should be completed by 2020.
With the start of AfCFTA negotiations in 2014, our own ambbadador, Chiedu Osakwe, became the chief negotiator and chaired the negotiating body at the technical working group level, while the Minister of Industry, Trade and Investment, Mr. Okechukwu Enelamah the president at ministerial level. This was in line with our leadership role in Africa, which saw Nigeria participate in the struggle against apartheid, in the struggle for independence of African countries under colonial rule and in promoting economic integration. It was therefore natural for the President to go to Kigali for the signing of the AfCFTA in June 2018. However, the lack of stakeholder consultations as well as the lack of empirical studies on the impact of AfCFTA on the local market. the economy led to the decision not to sign Nigeria yet. This has also led to consultations at the national level and a consensus has emerged subsequently on the fact that Nigeria can not afford to be excluded from a single market. on the continent scale for reasons too well known to be listed here and that he should sign. Our signature is only a matter of time, because Nigeria went too far to be absent in combat and certainly not under the AfCFTA!
AfCFTA is perhaps the fastest of all negotiated agreements in the history of OAU / AU. From the decision of the Heads of State to start the negotiations to the conclusion of the Framework Agreement and its entry into force, the process took about 24 months. This reflects the political commitment to this agreement and the decision to continue on this path. Hence the decision to intensify activities, especially the deposit of instruments of ratification for its entry into force, which has now taken place.
According to the findings and results of the CoDA meeting in Addis Ababa on 27-28 May 2019, Member States must now prepare for implementation and set up their respective National Implementation Committees. This will enable them to identify the challenges of an effective and unified African single market. Committees should also lead the process for private sector engagement, free movement of people, industrialization, value chain development, gender equality, strengthening regional economic communities and promoting cross-border trade.
While noting that the West Africa Free Trade Agreement has taken off, we must accept the fact that work has just begun, particularly at the national level. This is the crux of the problem, hence the recommendation to create a strong, private sector-focused national implementation committee to implement. Each African country is responsible for the success of the agreement. In our country, Nigeria, how can we translate this vision into reality? There is no quick fix in this case. Hard work is the answer. In addition to a national committee for effective implementation, the private sector must engage. The private sector should be helped to fully understand this agreement as part of its efforts to prepare it to exploit the opportunities offered by this agreement.
At the CoDA meeting in Addis Ababa, the question of why Nigeria did not sign and when Nigeria will be asked. There was also a sense of anticipation on the part of Nigeria to give concrete meaning to the agreement, as there is the notion that AfCFTA will be a hollow continental trade agreement without Nigeria. Although it may be far-fetched, there is truth in it.
Rules of origin, services, tariffs
The July 2019 meeting in Niamey is the official launch and we should indeed board this train that is gradually coming out of the station. We hope that we will sign and that our team will now focus on key issues such as rules of origin, services, tariffs, etc. We have already lost the host competition of the AfCFTA Secretariat. It is likely that our sister state, Ghana, has been granted the right to host the seat. We must act now, especially those of us from the organized private sector.
It is also relevant to draw attention to the fact that, in fact, Nigerian private sector operators and local businesses are already operating de facto in Africa. One of Nigeria's conglomerates is present in 18 African countries. Nigerian banks dominate the banking and financial sectors. We dominate the entertainment and creativity sectors. Nollywood's video and movies are ubiquitous and worth billions of dollars. They create jobs and jobs at home and abroad. Nigerian air operators, despite the difficulties faced by the national aviation sectors, are now providing services in the west and in other parts of Africa. So what are we afraid of? Now is the time for the private sector to wake up and prepare to tap the potential of the deal.
The central question here is how the private sector benefits from the Free Trade Agreement. Stakeholders should study the Agreement with a fine-tooth comb to fully understand its foundations. This will be part of the start-up activities from preparation to implementation. Nigerian banks that are already operating in West Africa and the rest of Africa, as well as operators in key sectors of the economy should be invited to stakeholder meetings to deliberate and to collaborate with the national implementation committee to be put in place by the government. The time has come to act. We can not wait any longer.
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