INTRA AFRICAN FREE TRADE
“ALKEBUKLAN” is said to be the original ancient name of Africa which means “Mother of mankind”. The first known map of Africa was drawn under the Ming Dynasty (1389) and throughout history and various records, one can observe that from the 16th Century till the late 19th Century, the gradual transformation from flourishing kingdoms and borderless tribal regions towards rigidly defined territories with borders set by colonial powers, creating a divided Africa. This process of segregation of the Africa into bits and pieces was accelerated in the 20th Century with massive exploitation of its natural resources: oil, gas, minerals, amongst others through the development of various infrastructures, mainly railways towards seaports, while imposing restrictions for mobility of people and containing them within those rigid borders.
It is known that Africans have always been dynamic travellers and traders between the various tribes and empires, from the Bantus, the Western Empires, or the Ethiopian Empires, to name a few. The famous salt roads are just one of the many examples showcasing the connectivity between sub-Saharan Africa to the Mediterranean.
It is worth understanding how the land of “mother of mankind” has muted over the centuries turning into a land, which until recently was seen as the place to fear due to conflict zones, poverty, sanitary issues, high corruption rates and far more, as showcased by international medias. There has been a construct to express the weaknesses of the continent making it the place to be avoided in a systematic way. It is also interesting to question the very notion and perception of corruption and how it all started; quite surely not by the sovereign tribes and empires.
The post-independence era for some 5 decades has been for many African countries a major turmoil, each having their own challenges. With the creation of the Organisation of the African Unity (“OAU”), later transformed into the African Union (“AU”), has awaken the need to recreate the lost bondages between the various geographic region within the continent. Under the AU Agenda 2063 and its eight aspirations, several flagship projects have been initiated to reinforce the intra-African unity through the Free Movement Protocol (“FMP”) and most importantly the African Continental Free Trade Agreement (“AfCFTA”) which seeks to create a single market for goods and services across Africa.
The FMP recognises the importance of free movement as a means of promoting economic integration and development in Africa. It aims to eliminate barriers to the movement of people, goods, and services, including visa requirements, work permits, and other restrictions. The agreement also seeks to promote the protection of the rights of migrants and their families, and to provide for measures to ensure their safety and security.
The mobility of people, goods, and services in Africa can have significant economic benefits for the continent. Here are some potential impacts:
- Increase in trade: With greater ease of movement of goods, businesses can trade more easily with each other, leading to increased commerce and economic growth.
- Job creation: The mobility of people and goods can create jobs in transportation, logistics, and related industries. It can also facilitate the movement of skilled workers to areas where their skills are in demand.
- Improved investment: The free movement of goods and services can attract foreign direct investment in the continent, particularly in industries such as manufacturing and tourism.
- Regional integration: Improved mobility can lead to greater regional integration, which can lead to larger markets, improved supply chains, and increased productivity.
- Reduced costs: The cost of transportation and logistics can be reduced with greater mobility, leading to lower costs for businesses and consumers.
However, it is important to note that the benefits of mobility are not evenly distributed across the continent. Some areas may benefit more than others and there may be social and economic challenges to overcome in implementing free movement policies. Nonetheless, if implemented effectively, the mobility of people, goods, and services in Africa has the potential to be a significant driver of economic growth and development.
The AU Agenda 2063 sets perspectives to creating a single African market with a GDP of $3.4 trillion. In January 2021, the African Union launched the Africa Visa Openness Index Report 2020, which tracks visa openness policies across the continent. According to the report, 54% of African countries offer a visa-on-arrival policy for African nationals, while 24% offer visa-free access. This is fundamental to boost intra-African travels for the mobility of people.
According to the World Bank, trade between African countries accounts for only 17% of the continent's total trade, compared to 69% in Europe, and 59% in Asia. A 2019 report by the African Development Bank estimated that the implementation of the FMP could boost intra-African trade by 52.3% by 2022 and increase investment and job creation on the continent.
The implementation of the FMP is extremely slow though due to the absence of signature and ratification by many member states. Over the years, FMP has been considered as the gateway of the AfCFTA creating multiple opportunities across the region.
AfCFTA hence represents hope for African countries with an ocean of prospects for economic, social and cultural reinforcement. The rest of the world see new avenues to tap in the African natural resources (minerals, oil, gas and more), 60% of the world’s arable land to feed Africa and the rest of the planet, the youth representing 70% of the Africa and which will be representing more than 40 % of the world’ population by 2030. Moreover, as a developing continent, with an expected shift from 1.3 billion to 2.4 billion Africans by horizon 2050, which represents a great challenge but also a wide market.
Mauritius has a strategic role to play in unlocking the potentials of the Africa market. However, our nation must also address key constraints in facilitating mobility of people, goods and services starting with the improvement of air connectivity to mainland Africa (Kenya and South Africa which is insufficient). In this modern age of rapid economic mutations, with the industry 4.0 and artificial intelligence changing drastically the classic approach to do business and trade, Mauritius is bound to make its own technological shift in order not to miss great market openings. Mauritius should lay significant emphasis on mobility of people and services to export our experts and facilitating development across the continent in the following sectors: Agribusiness, Manufacturing, Warehousing and logistics, Technology, Education, Tourism and uncontestably the Financial Services and Legal frameworks to structure business and trade in various sectors.
Vinesh CHINTARAM
Strategist in Intra-African Connectivity
CEO, Vision Network Africa
Member of the 4th General Assembly of AU-ECOSOCC
Director, VISIO Architecture
