AfCFTA: COVID-19 as an opportunity to deepen intra-Africa trade

The coronavirus pandemic has sent shockwaves through global economies, and Africa is no exception. As the continent grapples with the economic repercussions of the crisis, there is a glimmer of hope on the horizon. The acting Executive Director of the International Trade Centre, Dorothy Tembo, sheds light on the potential for African leaders to transform this crisis into an opportunity for deeper collaboration and economic growth through the African Continental Free Trade Agreement (AfCFTA). Tembo emphasizes that the data reflecting the impact of the pandemic on trade is concerning, with significant decreases in both imports and exports across various sectors. Textiles, footwear, vehicles, machinery, and equipment are among the hardest hit industries. African countries are already experiencing a decline in demand for their exports, signaling tough times ahead. The International Trade Centre has conducted surveys revealing that 74% of businesses anticipate negative impacts, from financial struggles to potential shutdowns. This looming crisis requires immediate action to prevent long-term damage to the business environment. Despite the challenges, Tembo sees a silver lining. She advocates for strategic policies to be fast-tracked to mitigate the economic fallout and foster resilience. The pandemic has prompted shifts in demand, creating new opportunities for African businesses. For instance, the production of masks and other health-related products has emerged as a growth area, demonstrating the adaptability of African companies. The AfCFTA remains a vital instrument for driving economic integration and growth on the continent, but its operationalization has been delayed due to the current crisis. However, Tembo urges African nations to avoid overly restrictive trade measures that could hinder progress towards the AfCFTA's objectives. Instead, she calls for enhanced cooperation to facilitate trade and ensure that the continent is well-positioned to capitalize on post-pandemic opportunities. While acknowledging the postponement of the AfCFTA's implementation, Tembo believes that groundwork can still be laid during this period to advance the agreement when the time is right. The path forward involves balancing public health priorities with trade facilitation to safeguard Africa's economic future. As African leaders navigate the complexities of the current crisis, the message is clear: by leveraging innovative policies and fostering intra-Africa trade, the continent can emerge stronger and more united in the face of adversity.