AfCFTA: The Game Changer for Africa

14 Jun

The AfCFTA connects 1.3 billion people across 55 countries with a combined gross domestic product valued at $3.4 trillion – representing a connected Africa. Africa needs long-term thinking and greater cooperation – and this is precisely what the AfCTFA represents. Across the world, countries are questioning trade agreements and economic integration. While the world turns in one direction, the African Union is moving in the other by deepening ties across the continent. At the same time, we cannot lose sight of significant challenges of AfCFTA including implementation, equity and infrastructure. Beyond trade, the pact also addresses the movement of people and labour, trade in services, investment, intellectual property rights and competition policy. When African countries trade with themselves they exchange more manufactured and processed goods, have more knowledge transfer, and create more value. Where does local manufacturing fit into the AfCFTA agreement?

Manufacturing in Africa is growing but there is a misconception that it can only be profitable if the products are sold outside the continent. Manufacturing on the continent is concentrated in only a small number of countries. Increased urbanization and access to electricity has increased the demand for manufactured goods and the continent’s capacity to produce them. Africa has seen local manufacturing from car assembly to ceramics, textiles, mattresses, and industrial production is rising. Automation creates opportunity. Manufacturing companies can strategically involve themselves in developing infrastructure on the continent and uses the latest tools and techniques to build functioning roads and ports. Private investment in African infrastructure can yield profits while contributing to the continent’s economic success especially if they partner with government initiatives.

The panel will discuss the success of the AfCTFA; what has been implemented so far, how it is working and what still needs to done to execute the trade agreement that was launched in January 2021.

Opening Remarks