AfCFTA Interview
Transcript
The African Continental Free Trade Area
Lessons from other free trade
agreements in other parts of the world, navigating the political and economic
differences, poor infrastructure, stability, synchronising AfCFTA with other
continental integration schemes
Public Lecture – Respublica
Litereria - RL Vol XIII No 419 MMXIX
Former Chairperson of the AU
Anti-Corruption Advisory Board
Professor of Public
Policy & Sustainable Institutional Reforms
Summary
One of the Key
Decisions of the 32nd Ordinary Session of the Assembly of the African Union
(January 2019) is that it endorsed the recommendations of African Union
Ministers of Trade on Template on Tariff Liberalisation which will be used by
Member States in preparing the AfCFTA Schedules of Tariff Concessions. The agreement
was endorsed on March 21, 2018, by 44 African countries in Kigali, Rwanda. Free
trade is an economic practice whereby countries can import and export goods
without fear of government intervention. African countries can benefit from
free trade by increasing their amount of or access to economic resources. Free
trade agreements ensure small nations can obtain the economic resources needed
to produce consumer goods or services. Free trade can improve the quality of
life for a nation's citizens. Importing from neighbouring countries ensures a
constant flow of goods that are readily available for consumption. Better
foreign relations is usually an unintended result of free trade. African
countries can also use free trade agreements to improve their military strength
and their internal infrastructure, as well as to improve politically. African
countries can use free trade to improve their production efficiency.
Infrastructure plays a key role in economic
growth and poverty reduction. Conversely, the lack of infrastructure affects
productivity and raises production and transaction costs, which hinders growth
by reducing the competitiveness of businesses and the ability of governments to
pursue economic and social development policies. The potential pitfalls are a
major potential challenge in harmonising Africa’s heterogeneous politics and
economies under one agreement is the wide variation that exists in their levels
of development. Other challenges are through political, security, economic and
cultural ties, former colonisers maintain a tight stranglehold in Francophone
Africa, both to serve their interests and maintain a last bastion of imperial
prestige. The complexities of the regional integration, the assumptions
that are made on the basis of perceived necessities or demand underlie the
question how does African states and the private sector go about to bring that
change? Without comprehensive policy-making and preferential treatment for
Africa’s most at-risk economies, the AfCFTA could prove to be a force for
economic divergence, rather than a force for good. It is therefore important
that participating countries build an efficient and participatory institutional
architecture to avoid leaving any economies behind.
Key words: African Union, AfCFTA, Free trade,
Infrastructure, former colonisers, FrancophoneSee interview here or https://www.academia.edu/38666167/AfCFTA_Interview_Transcript_RL_Vol_XIII_No_448_MMXIX