SHIFTING GLOBAL TRENDS
Urgent need for Africa’s free trade area
If Africa is serious about a free trade area it needs to act quickly, and differently, write Samuel Oloruntoba and Chris Changwe Nshimbi
Africa is moving towards crystallising an ambitious integration agenda of establishing a continental free trade area by October. This comes against a backdrop of an apparent trend away from huge regional trade deals in Europe and the US. African leaders appear undaunted by this. Their commitment to a continent-wide free trade area was firmed up in Addis Ababa in November 2016. Ministers and negotiators from the 54 members of the AU held their fourth round of talks for establishing the area. There is a huge amount to be gained from a free trade area for Africa. Intra-Africa trade is the lowest of any region in the world at 10%. Intraregional trade in Europe is 60%. Within the association of Southeast Asian Nations, it is 30% and in South America, 21%. If well-designed and implemented, a free trade area for Africa could change this. It could also set countries on a path of transformation from dependence on the export of commodities to manufactured products. Intra-Africa trade in manuf...
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