In a revolutionary move that promises to change the economic terrain across the African continent, the African Continental Free Trade Area (AfCFTA) has commenced operation, lauded as the largest free trade area in the world since the development of the World Trade Organisation.
Launched officially on January 1, 2021, AfCFTA encompasses 54 of the 55 African Union nations, making it the world’s largest free trade area in terms of the number of participating nations. The initiative signifies Africa’s resolute commitment to foster intra-continental economic integration and significantly spur growth.
The groundwork laid by the African Union Commission and the AfCFTA Secretariat has been critical in realizing this, with Wamkele Mene assuming his role as the first Secretary-General of the AfCFTA Secretariat in March 2020. The operationalization of AfCFTA is set to boost Africa’s trading position in the global market by reinforcing regional integration and attracting long-term foreign direct investment.
Secretary-General Mene has been vocal about how the inception of AfCFTA can potentially transform economies on a continental scale. Advocating for trade as a significant conduit for financial growth, Secretary-General Mene emphasized the urgent necessity of a robust continental economy that can survive external economic shocks, much like the ongoing COVID-19 pandemic.
While economic analysts agree there is no overnight solution to several on-ground challenges, including conflict, corruption, inadequate infrastructure, and regulatory logistics, AfCFTA provides a renewed impetus to tackle these issues. The rise in intra-African trade is expected to encourage industrial development and foster a competitive manufacturing sector.
With the AfCFTA, African countries have a unique opportunity to break the cycle of commodity dependence and reshape their economies. While the journey may not be devoid of hurdles, the promise of a unified Africa, moving towards a holistic economic progression, is a powerful narrative that promises a brighter future for the continent.
The inauguration of the AfCFTA is the starting line for a marathon, and the races to follow will test the resilience, the united resolve, and the economic potential of Africa. The move is being widely viewed as a paradigm shift in Africa’s economic journey, redefining its engagement with the world, and it is hoped that it will unleash unprecedented opportunities for growth and integration in an increasingly interconnected world.
