February 7, 2020/United Capital Report

Trading under the Africa Continental Free Trade Agreement (AfCFTA) framework is slated to start in July 2020, even though regional developments in 2019 suggests that many African countries are unprepared to implement the commitments of the deal. The re-emergence of xenophobic attacks in South Africa (Services), indefinite closure of Kenyan border with neighbouring Somalia (with cross-border trade banned in the process) and the closure of all land borders by the Nigerian government (Goods), just three months after celebrating its signing of the AfCFTA, buttress this position.

Notably, the overall success of the AfCFTA is in doubt amid a perceived push back by states to embrace the rules of economic integration. Thus, without a willingness by countries to take commitments made under the AfCFTA seriously and match their words with concrete deeds, AfCFTA risks not being the game changer it could be.

Beyond the above, impediments to trade between and among African countries such as transport and other key Infrastructure, currency and language barriers, are critical issues that may slow down the pace of the potential gain from the Agreement. In all, if the AfCFTA is to succeed, African states – especially South Africa, Nigeria and Egypt – must embrace more liberal transnational trade policies. This will require sustained efforts from governments, the private sector and civil society, to digest and disseminate information about the potential of the AfCFTA to generate jobs, improve infrastructure and boost economic growth.

Top African Stories

• Morocco’s unemployment rate slips to 9.2% in 2019: Morocco’s unemployment rate dropped slightly last year to 9.2% from 9.5% in 2018, the planning agency said on Wednesday, as heavy job losses in rural areas were offset by gains in towns and cities. Read More
• Saudi Telecom must offer to buy remaining 45% in Vodafone Egypt – regulator: Saudi Telecom Co (STC) must offer to buy the 45% of Vodafone Egypt owned by Telecom Egypt if it goes ahead with a $2.4 billion purchase of Vodafone Group’s stake in the company, Egypt’s financial regulator said.  Read More
• Trafigura to take 100% control of its Zimbabwe fuel import business: Commodities trader Trafigura will take control of its Zimbabwe business after buying out local partner Sakunda Holdings, which is owned by a businessman close to President Emmerson Mnangagwa’s government. Read More
• Qatar Airways in talks to buy 49% RwandAir stake, interested in increasing LATAM investment: Qatar Airways is in talks to buy a 49% stake in Africa’s RwandAir, and is interested in doubling its holding in LATAM Airlines Group to 20%, its chief executive said. Read More
• South African retailer Edcon sells 167 CNA stores: South African retail group Edcon said on Tuesday it was selling stationery business CNA to a consortium majority owned by Astoria Investments. Read more
• S.Africa’s Eskom and Transnet in talks on coal supplied by rail: South Africa’s heavily indebted state power firm, is in talks with Transnet to increase the tonnage and lower the price of coal transported by rail, the state logistics firm said. Read more

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