Posted: 2/2/2019 Updated/revised: 7/17/2019, 5/19/2019, 3/9/2019, 2/23/2019
Update Of 7/17/2019
The Acton Institute just published this article about the AfCFTA: Africa strikes a free trade deal: Inside the deliberations
It reminded its readers that this great agreement finally overcomes the arbitrary and artificial borders imposed by the former colonial powers! Something, I was remiss to recognize here.
Next on the agenda appear to be rules for licensing and standardization across the 54 nations. If they do not commit the same foolish mistakes of Western countries, these African countries can move ahead with dizzying speed by e.g. by adopting reciprocity or other procedures of mutual benefit.
Update Of 5/19/2019
With the signing of Gambia in April, the AfCFTA is in effect now! This is a global game changer! Stay tuned!
Just read this recommendable article: Africa Just Created a Major Free Trade Bloc That Will Add Billions in Wealth. It also describes briefly how many of the African countries, after gaining independence from their colonial powers in the 1950s and 1960s, choose Marxism and socialism. We know what a colossal failure this turned out to be leaving hundreds of millions of Africans in abject poverty!
“So far, 22 African Union member-states have ratified the free-trade area, and more are expected to join in the coming months. … After the west African nation The Gambia ratified the African Continental Free Trade Area (AfCFTA) in April, the twenty-two-nation threshold needed for the trade pact to come into effect has now been reached.” (emphasis added)
Update Of 3/9/2019
Just read The Trade Deal That Could Spark Africa’s Industrial Revolution The enactment of the AfCFTA is fantastic news for the continent (published 3/7/2019)
According to this article 19 countries have by now ratified the agreement, 22 countries need to ratify for it to come into effect. This is very exciting news!
Here are some quotes from the above article (emphasis added):
- “Rwandan President Paul Kagame proposed the AfCFTA last March. Since then, 52 of the 55 African Union (AU) members have endorsed the free-trade area.”
[What a success story in such a short time!] - “Currently, only 18 percent of exports from African countries are traded within the continent. By comparison, intra-regional trade accounts for 69 percent and 59 percent of total exports in Europe and Asia, respectively. ”
[Enormous potential for more intra-area trade!]
Original Post
Probably, the biggest event I have completely and regrettably missed in 2018. Has sub saharan Africa finally found a way out of widespread poverty? Some African countries are considered economic lions with significant economic growth year after year.
“The African Continental Free Trade Area (AfCFTA) is a planned free trade area, outlined in the African Continental Free Trade Agreement among 49 of the 55 African Union nations. If the agreement is ratified, the free-trade area will be the largest in the world in terms of participating countries since the formation of the World Trade Organization.” (Source 2; emphasis added)
“The African Continental Free Trade Area does not come into effect until 22 of the signing countries ratify the agreement. As of January 2019, 18 countries had ratified the agreement.” (Source 2)
Keep in mind that the area of the African continent is larger than Canada, China, and the U.S. combined or six times larger than the entire EU.
If the African countries can pull off a successful free trade zone in Africa, then this would be an economic miracle. Wish them all the best!
Some Enablers
Perhaps, the U.S. African Growth and Opportunity Act (AGOA) of 2000 also helped to spur economic development in Africa. How about Bill & Melinda Gates?
Then, there was the unprecedented President George W. Bush global health initiative started in about 2003: $15 billion over five years to fight HIV in developing countries, primarily in Africa. This still ongoing program certainly had the ambition and enormity of the famous Marshall plan for post-war Europe. “PEPFAR has been called the biggest single disease global health initiative in history” (Source 3)
China too has become heavily involved in Africa with investments and business development.
Some Consequences
- Population growth forecasts for Africa are seriously in need of downward revision
- Tremendous prosperity and poverty relief through regional economic development
- Less pressure for young Africans to migrate
- The UK after Brexit is poised to take advantage of free trade with Africa
Sources:
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