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Africa Continental Free Trade Area: Matters Arising

Africa Continental Free Trade Area: Matters Arising

AFTER much anticipation, apprehension, and concerns from her continental brothers and regional allies, Nigeria, to the joy of continental entrepreneurs, eventually signed the AfCFTA agreement on 7 July 2019. AfCFTA, a continental agreement between African countries stemmed from the Organisation of African Unity, (OAU) and later the African Union’s desire to promote cooperation among and between African States. The agreement seeks to promote intra African trade by minimizing reliance by African nations on the West for markets. Thus, the pact is expected to make Africa a single market of about 1.2billion people, increase intra-African trade, free movement of business professionals and investments, by establishing a single continental market for goods and services.

HOWEVER, the HOPE notes the delay in the signing of the agreement by President Muhammadu Buhari. This delay was informed by the President’s perception that Nigeria should not do anything that would undermine local manufacturers and entrepreneurs. This delay gave the Federal Government enough time to scrutinize the agreement and interact with the stakeholders of the nation’s economy. The signing of this document on July 7, therefore suggests that the President had cleared the grey areas and appended his signature to a document that has immense benefits to the nation’s economy.

GIVEN the integration of Nigeria into the continental market, THE HOPE, wants Nigerians to note that the expectations of job creation, lower import prices, increase in production outputs, technology transfer and specialization amongst others are long-term expectations, which would not materialize within the next few years. On the other hand, there would be immediate losses in trade tariff revenues, collapse of small-scale enterprises in the face of stricter competitions, regulatory reforms and capital transfers would be experienced almost immediately. This however does not imply that the AfCFTA agreement is a wrong step in the wrong direction. The  document promises long-term rewards instead of short-term palliatives.

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AS it was with the onset of globalisation, the benefits to countries cannot be the same. The benefits that can accrue to any of the signatories to the AfCFTA agreement are dependent on the home governments of these nations. Only nations who could create an enabling environment to thrive and grant financial and infrastructural support to local small-scale enterprises, industries and even large scale industries, to produce competitive products, would benefit immensely. The HOPE reiterates that Nigeria may be a market for foreign goods, while her produce is being underpriced in other nations, except government makes deliberate efforts to boost and improve the qualities of intended export goods and services.

FOR Nigeria, AfCFTA came at a point when the country has decided to diversify her economy. The focus now is on the development of Agriculture and small-scale enterprises. Agriculture would definitely benefit from the integration of Africa markets. Therefore, nations that are producers of food, raw agricultural materials, and agriculture related produces would benefit immensely from this agreement. To this end, THE HOPE admonishes the Nigeria government to improve on her investments in the Agriculture sector. While, promoting the production of raw materials for export is commendable, the Federal Government must also promote the establishment, sustenance, and productivity of manufacturing and industrial infrastructures in the country. This would promote agro-processing and attract more investors and foreign capital into the country.

THE HOPE also emphasizes the need for Nigeria to enhance and improve her security structures. Apart from equipping the security agencies with modern and adequate security gadgets, equipment and structures, there is also the need to subject the personnel to intensive training on the guidelines of the agreement. Foreign traders need to be given a sense of security in order to attract them. However, the security apparatus must also take into consideration that undesirable elements and products may want to find their way into the country under the guise of trade. Security must also be extended to certain local goods  against foreign competitions. Such securities would guard against deaths of the small-scale enterprises, and militate against increased unemployment. In that wise, the nation’s national interest must be the guiding principles of the nation concerning security within the boundaries of the agreement.

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FINALLY,  The Hope, admonishes that African governments must remain committed to the success of  AfCFTA agreement in order to sustain it and ensure that the gains are distributed amongst the member states, in order to achieve sustainable continental development.. Africa should also be wary of interventions, and meddlesomeness of their former colonial masters, who may seek a clandestine frustration of the noble idea.

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Africa Continental Free Trade Area: Matters Arising

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