July 1-15, 2019
Coffee from Africa may give the rich aroma to Starbucks coffee served all across the globe. But unfortunately you cannot drink such a coffee from a coffee chain in Africa. Similarly, a bunch of roses you buy in Johannesburg imported from Holland may have bloomed in Kenya.
The official launch of The African Continental Free Trade Area (AfCFTA) in Niamey, Niger, by the Heads of State and Government at an extraordinary summit of the African Union last Sunday, is set to change this paradox and empower African economies. It promises to usher in a new era of “Partnership and Prosperity” for Africa.
It is ironical that amidst the cries of global trade wars echoing protectionist undertones, Africa has become the torch -bearer of openness. To transform the euphoria into reality, there are numerous ‘ifs and buts’ .The long list of “actionables” includes fixing tariff schedules, non-tariff barriers, certificates of origin, and so on and so forth. Africa’s security issues, poor infrastructure, absence of manufacturing and processing capacity, lack of skilled labour, diversity and size of the continent etc, are some of the challenges that make the transformation cumbersome. Peace and security, quality of governance, sound fiscal policies etc are critical for the successful makeover.
Amidst the excitement and apprehensions, what does the trade bloc portend for India ?
In terms of market size, structural transformation and transparency, AfCTFA presents tremendous business potential. It offers a number of takeaways for the Indian companies to tap larger, unified, simplified and more robust African market particularly in sectors like FMCG, food processing, infrastructure and logistics , IT, financial services, etc. Africa’s transnational corporations have a major role in the common market and Indian businesses can hand hold them to pan out their intense Africa presence.
Nurtured by government policies and private initiatives, India’s economic ties with Africa over the years have surged ahead. India-Africa Forum Summit (IAFS), the official platform for catalyzing India- Africa business ties , held once in every three years, had played a crucial role in taking the engagement to the next level. The Third summit held in New Delhi in 2015, brought several prominent political and business leaders from the region together to flag new and upcoming areas for partnership.
The 2015 Delhi Declaration specifically stated India’s support for AfCFTA and its successful implementation. Thus, there is a commitment from Indian side to support industrialisation and structural reforms in Africa to roll out AfCFTA. The next Summit is overdue and it is hoped that the Indian Government takes the necessary steps to organize this significant event to derive the first mover advantage. A proactive initiative can help engage Africa as a top business partner of India.
The official launch of The African Continental Free Trade Area (AfCFTA) in Niamey, Niger, by the Heads of State and Government at an extraordinary summit of the African Union last Sunday, is set to change this paradox and empower African economies. It promises to usher in a new era of “Partnership and Prosperity” for Africa.
Coffee from Africa may give the rich aroma to Starbucks coffee served all across the globe. But unfortunately you cannot drink such a coffee from a coffee chain in Africa. Similarly, a bunch of roses you buy in Johannesburg imported from Holland may have bloomed in Kenya.
It is ironical that amidst the cries of global trade wars echoing protectionist undertones, Africa has become the torch -bearer of openness. To transform the euphoria into reality, there are numerous ‘ifs and buts’ .The long list of “actionables” includes fixing tariff schedules, non-tariff barriers, certificates of origin, and so on and so forth. Africa’s security issues, poor infrastructure, absence of manufacturing and processing capacity, lack of skilled labour, diversity and size of the continent etc, are some of the challenges that make the transformation cumbersome. Peace and security, quality of governance, sound fiscal policies etc are critical for the successful makeover.
Amidst the excitement and apprehensions, what does the trade bloc portend for India ?
In terms of market size, structural transformation and transparency, AfCTFA presents tremendous business potential. It offers a number of takeaways for the Indian companies to tap larger, unified, simplified and more robust African market particularly in sectors like FMCG, food processing, infrastructure and logistics , IT, financial services, etc. Africa’s transnational corporations have a major role in the common market and Indian businesses can hand hold them to pan out their intense Africa presence.
Nurtured by government policies and private initiatives, India’s economic ties with Africa over the years have surged ahead. India-Africa Forum Summit (IAFS), the official platform for catalyzing India- Africa business ties , held once in every three years, had played a crucial role in taking the engagement to the next level. The Third summit held in New Delhi in 2015, brought several prominent political and business leaders from the region together to flag new and upcoming areas for partnership.
The 2015 Delhi Declaration specifically stated India’s support for AfCFTA and its successful implementation. Thus, there is a commitment from Indian side to support industrialisation and structural reforms in Africa to roll out AfCFTA. The next Summit is overdue and it is hoped that the Indian Government takes the necessary steps to organize this significant event to derive the first mover advantage. A proactive initiative can help engage Africa as a top business partner of India.
