(4 minutes read)
· Pandemic, many feel, have exposed the fragile infrastructure of the African continent, be it physical, fiscal, healthcare and what
have you?
· There is a feeling that intra-trade of 54 African countries are mostly padded up since there is an inherent psychological barrier for countries in the region to trade among themselves unless they are forced to.
· Between 2017 and 2018, pan –African exports increased by only1%, while Africa’s exports to the rest of the world increased by 22%. Services exports declined by 1% in 2016-17, while global services exports increased by 7%.
Pandemic, many feel, have exposed the fragile infrastructure of the African continent, be it physical, fiscal, healthcare and what have
you? It is also true that it has told the world’s largest continent where its fault lines lie and for gathering a determined effort to
build on where it lacks-qualitatively and quantitatively, what more has to be done.
A few days back, www.trendsnafrica.com and its sister publication have carried an editorial on the imperativeness of moving towards the much desired AfCATA ( African Continental Free Trade Area) and argued for the need for progressively implementing the free trade, despite the disruption created by the pandemic. The realization is borne out of the likely losses the continent may face for any delay in heralding the common market.
There is a feeling that intra-trade of 54 African countries are mostly padded up since there is an inherent psychological barrier for
countries in the region to trade among themselves unless they are forced to. For instance, one of the intangible goods that are traded
is electricity. South Africa’s ESKOM has been contracted to give power to neighboring countries of Zambia and Zimbabwe since these countries do not have enough generation. Endemic problems being faced by the ESKOM forced these countries to develop their own power projects, particularly harnessing alternative sources of energy.
Yet, in the case of manufactured and agricultural goods, which are the low hanging fruits to be tapped for enhancing intra- trade, no headway has been made. Let the figures speak for themselves. Between 2017 and 2018, pan –African exports increased by only 1%, while Africa’s exports to the rest of the world increased by 22%. Services exports declined by 1% in 2016-17, while global services exports increased by 7%. What could be the reasons for such lackluster performance? Is it because of the mistrust and age old tribal rivalries? Should it mean the integration of markets be accompanied by a conscious effort to bring amity among people of different races and tribal affiliations?
Contradictions are inherent in the development process of the continent. Despite having the most arable land in the world, Africa is
still a net food importer. It is also a net importer of medicines. More than 90% of drugs consumed in sub-Saharan Africa are imported.
Oil is a sad commentary. The oil rich countries are exporting crude oil at very low prices and import refined oil at much higher prices to meet the domestic demand.
There is an overwhelming view held by many including our digital platforms that free trade is the panacea for bringing the economic
development of the continent into full throttle. But the pertinent point is whether there is any political will across the countries to
forget and forgive differences and work for the larger interest of the continent. That is also the way out forward for Africa from the
derivation and underdevelopment.
