With Zambia as the 22nd nation to
ratify in April, the African Union met the minimum threshold for the African
Continental Free Trade Area (AfCFTA) to come into force. The agreement which cover a market of
$2.5 trillion in GDP and 1.2 billion people in Africa, creates the largest free
trade zone since the formation of the World Trade Organization 25 years ago.
Although the European Union is larger with a GDP of $22
trillion, that trading bloc does not cover nearly as many people, and the
AfCFTA promises to boast the largest number of member countries. Of the 55
member states of the African Union, only few countries including Nigeria and
Benin have not signed the agreement. These member states have pending matters
such as consultations with local trade
unions and
manufacturers regarding their concerns over the agreement, and issues over
control over industrial policy and fears that individual nations will become
dumping grounds for other nations’ manufactured goods.
Through the agreement, African Union countries are making
moves towards unity and shared prosperity and will use trade and investment to
leverage their power on the global stage and bring about sustainable
development for African people throughout the world.
Dr. Arikana Chihombori-Quao, the African Union
Ambassador to the United States recently spoke about the significance of the
agreement. According to her, we “are talking about undoing the damage that the
Berlin Conference in 1884, when the colonizers met in Berlin to break up the
continent … to make sure that Africa was forever dominated,” noting that even
with sovereignty, the African nations could not compete on the world stage
divided.
“Since 1963 people have said Africa for the Africans. It
means all people of African descent because we are all Africans.”
On the AfCFTA, Ambassador Chihombori-Quao said it will form
the largest economy in the world. “This is the fastest ratification in the
history of ratifications. The Western powers did not think this was going to
happen,” she noted.
“When there is a will there is a way. The African leaders
spoke loud and clear. … It illustrates how ready Africa is to take its role on
the world stage. The sleeping giant is waking.”
The new trade agreement provides opportunities for the
Africans in diaspora, according to the AU Ambassador. “More importantly, I want
the children of Africa, children of African descent to know that Africa is
counting on them to step up. Africa needs capacity,” she said, adding that if
the children of Africa do not come to take the contracts, other countries will.
“Our former colonizers, they intentionally underdeveloped Africa, they built
the Africa they wanted to forever look to them. Africa has everything the world
needs.”
Ambassador Chihombori-Quao noted that “this resource-rich
continent is painted as diseased, dying,” and “it was all by design to see
black people the continent is forever dominated. An Africa speaking with one
voice cannot be exploited.”
The AfCFTA
will bring about African unity that was undermined through colonization and
slavery. “The colonizers were downright evil people because what they did to
the continent was unacceptable. They put together a strategy to destroy a whole
race,” the ambassador said. “In addition to the physical boundaries, they also
set out to make Africans believe everything African was bad and everything
European was more desirable. The same mind game was going on with slavery. The
shackles of the mind are the same. While we gave up the shackles, the shackles
of the mind still exist.”
With the promise of free movement of people, electricity to
millions more at a savings of billions of dollars, the AfCFTA is a game
changer, with plans such as the high-speed rail from Cairo to Cape Town
bringing the promise of transformation to the continent.
As with any
such agreement, there are challenges, the foremost being in the implementation
of the AfCFTA, including negotiations on details regarding e-commerce,
intellectual property, competition tariff concessions, and other issues. As
Landry Signé and Colette van der Ven note in a Brookings paper, the ability of the AfCFTA to reduce intra-African trade
barriers depends on ongoing negotiations. Another issue is the old colonial
infrastructure of African nations, which impedes trade and is in great need of
an upgrade. While the continent requires $130 billion
to $170 billion in annual
infrastructure financing according to the African Development Bank, they suffer
from a $68 billion to $108 billion shortfall.
Ambassador
Chihombori-Quao believes that the AfCFTA
has implications for Africa’s relations with Europe, the U.S., and China. This
is because when Africa negotiates with China, it will do so on the basis of
equality. “The European Union is warning Africa about China. They don’t have a
leg to stand on,” the Ambassador said. “France is taking $500 billion out of
Africa year in and year out, Europeans are taking trillions out of Africa year
in and year out. The spotlight is on China but no one is talking about Europe,”
she said. “Until France stops taking billions out of Africa every year they do
not have a leg to stand on. They’ve been doing it so long it has become normal.
They are refusing to return the skulls they used for medical experiments,” she
added, arguing that “France is nothing without Africa. France is a developing
country without Africa.”
“One of the
biggest threats to peace and security in Africa is France. France is in 18
African countries (and) 22 African presidents were assassinated by France,”
said the head of the AU mission in Washington. “We can put China on notice that
we need them to treat us fairly. The reason China was able to get away with it
is we didn’t connect the dots. They dealt with us individually and now we are
connecting the dots,” the AU diplomat said, and concluded that the biggest
challenge to African economic unity are the former colonizers. “They did not
expect us to have these ratifications, so this was a curveball for them,” she
noted. “They infiltrate African governments, they will buy some people. We have
been through them for years.”
“The next
challenge is how we get people to unshackle themselves…The failure to believe
in ourselves; the failure to trust each other.
“People from China stick together like super glue. … Our problem
is we do not believe we are Africans. We as Black people must have a serious
conversation and look in the mirror” she concluded.
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