In 2018, the African Continental Free Trade Area (AfCFTA) was introduced at the 10th Extraordinary Summit of the African Union. In 2021, the AfCFTA was formally implemented. Since then, various negotiations have taken place that have attempted to get the free trade area up and running. While there certainly have been some hurdles to the agreement’s implementation, there is some good news.
John Rocha, chief director at Africa Bilateral Economic Relations and a part of the Department of Trade, Industry, and Competition in South Africa, noted that 31 countries are expected to formally begin trading under the AfCFTA this year. If true, this is a monumental step forward for the agreement, which has been estimated to potentially lift about 30 million people out of extreme poverty, raise Africa’s income by nearly $450 billion, and create the largest single market for goods and services by number of participating countries across the globe.
While the AfCFTA’s implementation has been somewhat hindered by discussions regarding Rules of Origin and other trade law specifics, news like this indicates that things are progressing and the future for Africa will include liberalised trade. For decades, the African continent has been hampered by unnecessary trade barriers that have made it incredibly difficult to move goods across borders. These divisions make it difficult for Africans to get the products they need, keeping people stuck in poverty. Some African leaders recognize this, and are making wise decisions that can certainly help the free trade area function properly.
For example, Liberia’s Speaker of the House of Representatives, Jonathan Koffa, was recently speaking at the African Leadership Awards, held in Addis Ababa. During his speech he noted that Africa “should depend on trade, not aid.” He also stated that Africans “must turn to each other, trade with each other, and develop an African bond that makes [Africans] closer in fact, and not just in theory.” In his speech, Koffa also emphasized the need to make it easier for people to move throughout the continent, crossing borders more easily and allowing people to seek productive work opportunities where they can be found.
Statements such as these recognize the fact that the AfCFTA in many ways represents an ideological shift toward market economies and away from the damaging state-centered development philosophies that have hampered growth on the continent. Positive steps are certainly being taken to improve African economies, let’s hope they continue to do so.
Alexander Jelloian
Alexander Jelloian is the Research and Project Manager at the Initiative for African Trade and Prosperity.
In 2018, the African Continental Free Trade Area (AfCFTA) was introduced at the 10th Extraordinary Summit of the African Union. In 2021, the AfCFTA was formally implemented. Since then, various negotiations have taken place that have attempted to get the free trade area up and running. While there certainly have been some hurdles to the agreement’s implementation, there is some good news.
John Rocha, chief director at Africa Bilateral Economic Relations and a part of the Department of Trade, Industry, and Competition in South Africa, noted that 31 countries are expected to formally begin trading under the AfCFTA this year. If true, this is a monumental step forward for the agreement, which has been estimated to potentially lift about 30 million people out of extreme poverty, raise Africa’s income by nearly $450 billion, and create the largest single market for goods and services by number of participating countries across the globe.
While the AfCFTA’s implementation has been somewhat hindered by discussions regarding Rules of Origin and other trade law specifics, news like this indicates that things are progressing and the future for Africa will include liberalised trade. For decades, the African continent has been hampered by unnecessary trade barriers that have made it incredibly difficult to move goods across borders. These divisions make it difficult for Africans to get the products they need, keeping people stuck in poverty. Some African leaders recognize this, and are making wise decisions that can certainly help the free trade area function properly.
For example, Liberia’s Speaker of the House of Representatives, Jonathan Koffa, was recently speaking at the African Leadership Awards, held in Addis Ababa. During his speech he noted that Africa “should depend on trade, not aid.” He also stated that Africans “must turn to each other, trade with each other, and develop an African bond that makes [Africans] closer in fact, and not just in theory.” In his speech, Koffa also emphasized the need to make it easier for people to move throughout the continent, crossing borders more easily and allowing people to seek productive work opportunities where they can be found.
Statements such as these recognize the fact that the AfCFTA in many ways represents an ideological shift toward market economies and away from the damaging state-centered development philosophies that have hampered growth on the continent. Positive steps are certainly being taken to improve African economies, let’s hope they continue to do so.
Alexander Jelloian
Alexander Jelloian is the Research and Project Manager at the Initiative for African Trade and Prosperity.