Zion Adeoye, Managing Director of AfCFTA Desk, Centurion Law Group
Founded in 2018, the African Continental Free Trade Area (AfCFTA) represents Africa’s greatest opportunity in the coming decades in the fight against poverty, including all forms, energy and infrastructure.
Against the backdrop of tens of millions of Africans who have fallen into extreme poverty due to the onslaught of the covid-19 pandemic, strong claims must be made for the swift implementation of the African Continental Free Trade Area. Under AfCFTA, extreme poverty is projected to decrease significantly across the continent. In West Africa, for example, the number of people in extreme poverty is greatly reduced. That is a decrease of about 12 million, which is more than one-third of Africa as a whole.
But beyond extreme poverty, the time has come for Africa’s true economic power to be realized through intra-African trade. Compared to Asia and Europe, where intracontinental trade is 59% and 68%, only 17% of exports from African countries are intracontinental (World Economic Forum). This is due to AfCFTA’s long-standing tariff and non-tariff barriers. Established to essentially eliminate.
The fact that intra-African trade accounts for only about 2% of world trade means that with proper implementation of the AfCFTA, there are significant benefits to be realized. The continent, which dominates vast resources and a strong consumer market of 1.2 billion, is easy to succeed economically, especially given its young, fast-growing and vibrant population.
Africa’s socio-economic and political structure under AfCFTA dispensing must be able to provide security for young people-livelihood security, exercise security, innovation security, life and property security. AfCFTA must be driven by the power of live socio-economics and young and vibrant people and SMEs, not by big government or large multinationals.
Cooperation on infrastructure
The African Development Bank estimates that Africa’s infrastructure needs range from $ 130 to $ 170 billion annually and the funding gap ranges from $ 676 to $ 107.5 billion. However, the lack of cooperation on infrastructure has always been as detrimental to African development as the lack of funding initially advertised.
For AfCFTA to work, it needs to connect the African economy on a regional and continental scale through a reliable infrastructure that is conceptualized, funded and commonly protected. Optimal development of regional or continental infrastructure blueprints requires the dumping of duplication and waste in infrastructure development.
Infrastructure cooperation must include security infrastructure. What is happening north of Mozambique should not be separated from the solutions deployed south of Nigeria. Trade cannot be promoted without protecting production and investment across the continent. The Mozambique rebellion is a threat not only to Mozambique and southern Africa, but to the entire continent, and as with Pretoria and Pemba, Abuja and Akra require commitment to concern and action.
Africa’s energy poverty or somehow its shortage is bad for business, both for Africa and for the rest of the world. More than 600 million people live without electricity in Africa, including more than 80 percent of rural people. In this region, only two countries, Mauritius and Seychelles, cover almost universal electricity. Home electricity access is more than 75% in just six African countries. Almost two-thirds of the countries in the region have household access rates of less than 50%.
Countries around the world need to take climate change seriously, but African countries responsible for significant reductions in carbon emissions are those whose global communities are within justice and justice. Suggestions for. It is never unreasonable for African countries to try to develop natural resources to empower industry and secure the future of a young and growing population after generations of impediment to their development. Or not disgust. Relief in other parts of the world will never be disproportionately placed on the backs of Africans.
The development of Africa’s oil and gas resources does not impede the development of renewable energy. Africa is not leveraging renewable resources, whose production costs are declining rapidly. Renewable energy also offers the potential for transformation to free Africa from energy poverty. Under AfCFTA, Member States are obliged to adapt local legislation to a wide range of regional plans. Thus, unified energy sector interventions and plans will enable the growth of renewable energy production to provide cheap electricity to the continent and the spillover effect from the use of innovative technologies in access to electricity. Will bring an increase.
Movement of people and social integration
It is no coincidence that the most glorious examples of free trade and perhaps regional prosperity are also typical of the free movement of people. The AfCFTA document pays the free movement of people for the sweetest lip service in human history. This is probably the most insurmountable obstacle to true integration in Africa.Obviously, this remains a very sensitive issue for the more developed countries of Africa. Remember that the nation is built in history, not in nature, And in many cases, the comparative advantage of the region far exceeds the historically drawn structure.
Indeed, for Africa, historic separation and fusion must be abandoned for true cooperation for development. The flaws in history must not undermine our potentially bright future. Young Europeans could not put the price on the opportunity to look on a continental scale. Europe as a whole represents a country that works, lives, and loves, even while its historic identity is celebrated.
The concept of shared prosperity is something we must accept and Africans must decide whether we will continue to be poor neighbors on high walls or wealthy countries with picket fences... Alien exclusion and self-loathing must be demoted while we build a permanent African federation. Undoubtedly, these are mutually exclusive.
Perhaps Africa has a unique opportunity to set a model for the rest of the world to follow on how meaningful, genuine and useful regional cooperation can be. Our rich culture of community interdependence and established involvement should be a valuable resource in an era of social distance.
Cooperation on implementation and compliance
The endless debate about the mere existence and potential of the AfCFTA document would be of no use to the development of Africa. If we all agree that a competitive African collective is essential in a fast-moving world, each country’s commitment to implement and comply with the agreed must be non-alloy.
True cooperation and commitment begins with the best hands and minds on rule-making, implementation and monitoring under the AfCFTA framework. The flood of issues such as protected trade principles, unfair competition, subsidies, currency manipulation, exchange rates, trade disputes and sanctions needs to be addressed in great detail within the framework of the AfCFTA. Hyperpolitical expression is inadequate, and technocrats must be given free reins to develop strong rules of conduct and conflict resolution rules without undue political intervention.
The seriousness of implementing AfCFTA also defines the need to avoid paralysis of unattainable consensus analysis. Even if these rules are at a disadvantage, there must be an efficient means for African countries to reach the decisions they must commit.
Communication, energy technology and future industry formation
Africa needs more communication channels to connect African businesses and organizations. Poor communication networks have hampered the development of the African economy. Advanced Information and Communication Technology (ICT) helps strengthen connectivity within Africa and increase access to goods and services. Under AfCFTA, policies and regulations related to ICT infrastructure need to be deliberately harmonized to facilitate cross-border interconnection.
Even while struggling with debilitating energy poverty, Africa must relocate to shape future industries. Many of the essential resources for future industry and technology are abundant in Africa, and while holding the ace, playing a second fiddle for Africa in the next Industrial Revolution is not an option. In addition, many African companies are exporters of natural resources and raw products, not finished or processed products. Therefore, the development industry is important because it provides African companies with the ability to process raw materials and export finished products. Governments also need to implement strategies to develop industrialization across different sectors in order to increase the global competitiveness of the continent.
Understanding Africa’s position on the above is the key to maximizing the value of AfCFTA.
Distributed by APO Group on behalf of Centurion Law Group.
Relocation of Africa under AfCFTA (according to Zion Adeoye)
Source link Relocation of Africa under AfCFTA (according to Zion Adeoye)