The African continent has embarked on a journey that seeks unlock economic potential thorough unity in diversity. However, while many experts view the African Continental Free Trade Agreement (AfCFTA) as a historic deal loaded with benefits, skeptics haven't overlooked Europe's possible influence in the development of the accord. Since coming into effect on January 1, 2021, the deal brings together 54 African countries with a combined population of more than 1 billion people and a combined GDP of over US$3 trillion. It seeks to establish a single African market for goods and services, together with the free movement of people and capital. Once fully functional, it could be the biggest free trade area in the world. With a dark history dominated by colonialism, Africa faces a myriad of challenges despite having a great supply of natural resources and opportunity. Highlighting AfCFTA in a historical context, Chris Hattingh, a project manager at the Free Market Foundation, said: "The agreement points to a very positive direction for Africa because economic freedoms in Africa have been suppressed for centuries through colonialism." The treaty is also expected to stimulate intra-regional trade flows, address the continent’s industrial deficit and reduce its over-reliance on primary goods exports. Miyelani Mkhabela, the CEO at Antswisa Transaction Advisory Services, is confident that AfCFTA is a great opportunity for entrepreneurs in particular. "This is one of the greatest opportunities for African entrepreneurs because entrepreneurs will trade amongst each other and will produce African products. When you look at Africa's import [cost], it is calculated at around $540 billion. That is a huge chunk of products that we are importing and if that can be produced within our country, it will assist in creating jobs." Hattingh believes that AfCFTA has the potential to unlock opportunities and strength through the diversity of the continent. "I'm hoping countries realize that through being interconnected, through trading [and] through playing to their strengths, their economies will be strengthened. The strength of diversity is amplified through trade when it's easy to trade." However, according to civil society activist Hameda Deedat, the implementation of AfCFTA could be jeopardized by issues such as xenophobia, the coronavirus pandemic and the disparity between regions across the continent. She is the Acting Executive Director, National Labour and Economic Development Institute. "Look at the issue of xenophobia in South Africa, the global closure of borders in the context of the coronavirus pandemic [and] at colonial history. We have a large francophone Africa and anglophone Africa. Francophone Africa is still, in my view, dominated and colonialized by the French. Do you think France, noting that they are dependent on West Africa in so many ways to keep their economy going, are going to relinquish West Africa to the AfCFTA? Never!" She added: "Do you think francophone Africa is going to accept trading in an African currency that all of African countries use, which is going to lead to a disadvantage to the French? As much as there can be commonalities and differences, some of it works to our advantage and there are definitely differences that work to our disadvantage." Deedat is skeptical about the influence Europe may have had on the formation of the AfCFTA and is concerned that it may be a renewed version of subtle colonialism. She bases this skepticism on the fact that European countries offered trade facilitation, support and capacity building in the formation of the African Free Trade Area. "It [EU] is using AfCFTA to make it sound like it's for Africa but, in actual fact, it's perpetuating what has historically been. Let's not say that the AfCFTA is here to challenge colonialism" "The framework is not pan-Africanism. It does not speak to pan-Africanism and true regional integration in the way that we need it to in order to deliver the key aspirations. The AfCFTA, in its current form, will not deliver." While analysts are divided on whether the trade deal is a gamechanger or colonialism in a new suit, it is clear that only through proper implementation will the anticipated benefits be reaped. WATCH THE FULL DISCUSSION HERE:
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AuthorZahid Jadwat is a South African writer, columnist, podcaster and radio show host. Archives
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