As the European Union – EU faces uncertainty after one of its largest economies, Britain opted to break away in what has now been coined as Brexit, the African Union – AU has announced major strides in its quest to launch the world’s largest free trade area worth an estimated US$3 trillion.
Like every regional integration efforts, fears around nationalistic interests, loss of local political power and even cultural dilution rage among member states. But the creation of an African continental Free Trade Area – AfCFTA has potential.
Zambia has a unique ball to juggle, the AU Commission on Trade and Industry is led by one of its prominent sons, Albert Muchanga which in one way or the other puts the country in a situation we’re it has to support its own nominee to the AU as well as review the challenges that his core job would pose once the Afro free trade area comes into place.
Zambian Albert Muchanga, who is the AU Commissioner for Trade and Industry said that “when you create a larger market, you create greater opportunities for large investments. Right now, members of the African diaspora are coming to us to start the process of investment, this will increase employment opportunities for its people.”
And today before departure back home, Zambia’s President Lungu signed the protocal which was witnessed Albert Muchanga, African Union Commissioner for Trade and Industry, signed on behalf of the African Union.President Lungu said Zambia will now work towards necessary processes required to ratify the agreement.
In a media statement issued by First Secretary for Press, Zambia Embassy to Ethiopia Inutu Mwanza to the Zambian Business Times – ZBT, President Lungu further stated that Zambia recognized the importance of the agreement as it was one that would liberalise intra-Africa trade of both goods and services for all African countries .
The drive has received further boost as Africa’s second largest economy by GDP, South Africa”s President Cyril Ramaphosa, signed and deposits instrument of ratification with Moussa Faki, Chairperson of the AU Commission – demonstrating South Africa’s commitment to a coordinated strategy to boost intra-Africa trade. Nigeria is Africa’s biggest economy and its commitment is yet to be clarified.
Other African countries that have already come on board include Ghana, Kenya, Rwanda, Niger, Chad, Guinea, Eswatini, Uganda, IvoryCoast, SierraLeone, Mali, Namibia, Senegal, Congo, Togo, Mauritania, Ethiopia and Djibouti.
The creation of the AfCFTA is not a silver bullet to solving Africa’s development challenges but definitely a step in the right direction. The economic and trade arrangements to be ushered in through the Estimated US$3 trillion FTA will need a strong political backbone to avoid this large market being controlled by external forces and use the market as a dumping consumer ground
