UNECA on how the AfCFTA will strengthen regional integration

The African Continental Free Trade Agreement (AfCFTA) is set to create a $3.4 trillion economic bloc, with regional integration playing a crucial role in its success. Joe Atamensa, the Principal Policy Advisor for the Macroeconomic and Governance Division at the United Nations Economic Commission for Africa (UNECA), discussed the significance of the agreement in a recent interview on CNBC Africa. Regional integration is essential for the economic development of Africa, and the AfCFTA is a significant step towards achieving that goal. Atamensa highlighted the importance of intra-African trade as a means to combat poverty and enhance industrialization on the continent. The removal of tariffs through the free trade area will lower the prices of goods, stimulate demand, and promote competition, ultimately leading to increased industrialization and value addition to products. The AfCFTA not only focuses on trade but also includes provisions for the free movement of persons, aiming to deepen regional integration further. The agreement envisions a future where Africans can travel within the continent using a common passport, fostering unity and cooperation among nations. However, challenges remain, including non-tariff barriers, sanitary conditions, and payment structures. Addressing these issues is crucial to ensure the smooth implementation of the agreement. In particular, landlocked countries face obstacles in accessing seaports, highlighting the need for cooperation and agreements to facilitate trade corridors. The COVID-19 pandemic has posed additional challenges to regional integration and economic growth in Africa. The disruption caused by the pandemic has impacted industries and led to contractions in various sectors and countries. Despite these setbacks, there is optimism for recovery in 2021 with the expected rollout of vaccines and the resumption of normal economic activities. As Africa navigates through the current crisis, the AfCFTA offers a beacon of hope for the continent's economic future. By fostering regional integration, addressing trade barriers, and promoting collaboration among nations, the agreement has the potential to unlock new opportunities for growth and development in Africa.