World Economic Forum Aims To Uplift Africa

UK-based economist and political analyst Simba Chabarika believes it is too early to celebrate the ratification of the Africa Continental Free Trade Area (AfCFTA) which took place at the 28th World Economic Forum held in Cape Town recently

- Babington Maravanyika

He says just as years of bureaucratic wrangling delayed the ratification, there will, without doubt, be more bureaucracy in implementing the actual trade between the African countries. He said it was well and good to talk about the collapsing of trade barriers, potentially boosting economies and uniting African countries, but putting theory into practice may prove not to be as easy as many people believe.

Chabarika said cutting links with overseas countries with which African countries have traded for decades may not be as easy as generally envisaged. He said the overseas countries may actually come up with new incentives which could dissuade some African countries from abandoning them in favour of new partnerships with other African countries.

Transport links between some African countries may also prove a big challenge in the movement of goods. Just as people travelling from some African countries need to travel via Dubai or some European cities to get connecting flights to some parts of Africa, the same may be required in the movement of goods, something which would consequently make them expensive.

Speaking at the forum, Ngaire Woods, professor of Global Economic Governance at Oxford University, said he was worried that when AfCFTA is implemented, some poorer African countries may be crushed by stronger neighbours. He said there was need to ensure that Africa’s uniquely young population benefits when AfCFTA is implemented. More than 200 million of Africa’s population is aged between 15 and 24, he said.

“The consequences of liberalisation can really damage some of the poorest in these countries, but that’s not a reason not to do it, that’s a reason to have really great policies of support,” said Woods.

“We need to soften our borders to enable easy movement. We need leadership that is capable and has the determination to act collaboratively.”