Secretary-General of the African Continental Free Trade Area (AfCFTA), Mr. Wamkele Mene, has stated that Africa’s economic integration is no longer a matter of choice but a necessity if the continent is to industrialize.
According to him, Africa’s vision for development – to build an integrated, peaceful and prosperous continent driven by its own citizens and representing a dynamic force in the international arena, is embedded in the AU’s Agenda 2063.
AfCFTA, he said, is one of the flagship projects of the implementation plan of Agenda 2063, Africa’s long-term development strategy for transforming the continent into the global powerhouse of the future.
“Through the AfCFTA, Africa is reshaping her small and fragmented markets to create one integrated market with large economies of scale and scope,” he stated.
Speaking on the occasion of the Antalya Diplomacy Forum in cooperation with AfCFTA on the title, ‘A vision for Development in Africa’ on Saturday 12th March 2022, Mr. Mene indicated Africa is charting a new course for its industrialization and economic development against a global backdrop of changing political and economic priorities, including the impact of the Covid-19 pandemic.
According to him, the quest for an integrated continent led to the formation of the OAU in 1963 and was supported by a Pan-African vision to eradicate the vestiges of colonialism and apartheid, which was eventually accomplished in the 90s after the end of apartheid in South Africa.
“Attention has now been refocused on matters of economic growth and development. Accordingly, in 2002 the OAU was transformed into the African Union (AU) to spearhead the pursuit of regional integration and development,” he stated.
According to him, through the AfCFTA, Africa is reshaping its small and fragmented markets to create one integrated market with large economies of scale and scope.
He said, “The countries of the continent survive mainly on exports of a very narrow range of primary commodities to traditional markets of the North while being heavily reliant on the import of capital goods. As a result, African countries do not trade with each other that much.”
“AfCFTA presents a renewed opportunity for Africa to steer its economic relations away from excessive primary commodity dependence and reliance on external creditors/donors to a new economic model based on self-reliant cooperation, value-addition and industrial activities, as well as higher levels of intra-African trade.”
“With the AfCFTA, we have an opportunity to accelerate intra-African trade and to use trade more effectively as an engine for growth and sustainable development.”
“Beyond trade in goods, the AfCFTA covers other trade-related issues that are critical to foreign direct investment strategies and activities including trade in services, competition policy, intellectual property rights, investment, dispute settlement and digital trade,” he added,
Mr. Wamkele Mene noted as a Secretariat, equitable distribution of the gains of the AfCFTA will be at the centre of its implementation because if it is perceived to be benefiting only a handful of relatively industrialized countries in Africa, it will be rejected.
He assured that ensuring no group, sector or country feels marginalized or excluded from the benefits of the AfCFTA will help address the root causes of conflicts, give hope to the citizenry and set the continent towards prosperity.