(5 minutes read)
- Has AfCFTA, launched in January this year remained mostly in papers thanks to the impact of pandemic?
- With strong signs to indicate it might bottom out, one can expect that economic activities will pick up in the continent as usual
- A number of analysts feel that the process would be slow since the 54 countries of Africa differ immensely geographically, politically, socially, economically, and culturally
Has AfCFTA, launched in January this year remained mostly in papers thanks to the impact of pandemic? With strong signs to indicate it might bottom out, one can expect that economic activities will pick up in the continent as usual. Could free trade make a difference in the coming days? There are differing views and perceptions.
A number of analysts feel that the process would be slow since the 54 countries of Africa differ immensely geographically, politically, socially, economically, and culturally. They have to find a common ground to work on. Years of colonization, cultural and language differences and the invasive foreign influences would make the market integration more difficult and cumbersome.
Political instability and corruption are other factors that can hold back the integration process. On the top of it, Africans should evolve a common trade language notwithstanding each country’s individual challenges. Equally significant is the nurturing of local talents and entrepreneurship.
Despite these vicissitudes, there are signs of progress in many countries in the continent. With the easing of Covid-19 restrictions and relaxation to travel restrictions, young Ghanaian entrepreneurs are keen to do businesses in 54 African countries including Kenya, Tanzania including investments.
Yet, many things should be put in place to make the world’s largest free trade zone more attractive. So far, only 54 countries have ratified the treaty. The small country –Eritrea-is yet to join the trade bloc. Analysts are also looking at the possible realms the new generation entrepreneurs will be betting on. They feel Fintechs initiatives, Agribusinesses, tourism, and intra -Africa trading may be the fastest growing sectors for the young Africans to enter. The African continent offers a market for young entrepreneurs to leverage on technology to lead innovative businesses. They should make investments in some businesses in all parts of Africa, be it in east, west and south of Africa. They should also work with governments within the sub-region to create a conducive environment for startups to thrive.
Cross-border trade, particularly in the East of Africa has been made easier with the use of a common currency. Transfer of money in the continent is much easier now. But to build confidence of the people in the system, there is the need to continuously build the platforms to minimize the occurrence of fraud within the cyber space. Easing of tax laws is another factor that can help more investments.
What should be the ultimate aim of Africa to strive for development? It should have its own high profile entrepreneurs to invest in the common market rather than depending on investors coming from other continents to take the cream out, leaving the Africans with the visccidities of a colonized continent. That mindset should come first.
