AfCFTA: How to get the free trade deal back on track amid COVID-19 crisis

The African Continental Free Trade Area (AfCFTA) agreement, which was set to be operationalized on the 1st of July, has faced a setback due to the global COVID-19 pandemic. Various heads of state agreed to postpone the commencement of the free trade deal, making it the continent's largest trade agreement in the making. Albert Muchanga, the AU Commissioner for Trade and Industry, shed light on the challenges faced and the way forward for AfCFTA. The impact of the pandemic was significant on the negotiations for the agreement. The period from January to May was crucial for finalizing the talks in preparation for a summit that was planned for the 1st of March in South Africa. However, with the lockdowns and travel restrictions in place, it became impossible for negotiators to continue meeting, leading to a halt in the negotiations. The governments also had to shift their focus to handling the health crisis at hand, diverting attention from trade negotiations. The COVID-19 pandemic disrupted supply chains globally, affecting trade with the EU, West, and East. Nonetheless, the postponement could potentially open up new opportunities for intra-Africa trade, with the continent looking inward to replace disrupted international markets. The lockdowns and restrictions on movement had a direct impact on transportation and the movement of goods across Africa, making it challenging to commence trading under AfCFTA. Muchanga pointed out various considerations that led to the decision to postpone the operationalization of AfCFTA. The heads of state and government weighed the challenges and concluded that it was necessary to reschedule. Negotiations continued through digital platforms to ensure progress for a new operational date set for the 1st of January 2021. Amid the crisis, initiatives like Panabios, with the Afro champions leading the way, have played a significant role in mitigating the effects of the pandemic and building confidence in handling potential infections. The screening mechanisms at entry and exit points across Africa have been pivotal in managing the spread of COVID-19 within the continent. Looking ahead, Muchanga highlighted the opportunities for Africa in intra-Africa trade post-pandemic. The collapse of commodity prices emphasized the need for export diversification, which AfCFTA can facilitate. Regional supply chains development is essential to ensure resilience and stability in trade amidst global disruptions. One major challenge that emerged during the pandemic was the flight of capital from Africa to safer havens, signaling the need for increased investment within the continent. The African private sector and pension funds have a vast market of 1.2 billion people within AfCFTA, presenting immense opportunities for investment and growth. Despite the temporary setback, Muchanga remains optimistic about the future of AfCFTA, asserting that negotiations will continue and the market will launch as planned on the 1st of January 2021.