The Power Table: AU Commissioner Albert Muchanga on deepening Africa’s economic integration

This year marks the 60th anniversary of Africa Day, a celebration of the achievements and potential of the African continent. At the core of this celebration is the African Union's theme of accelerating the implementation of the African Continental Free Trade Area (AfCFTA). The AfCFTA is an ambitious trade pact aimed at creating a single market for goods and services for the almost 1.3 billion people across Africa, with the goal of deepening the economic integration of the continent. To shed light on the progress and challenges in this endeavor, CNBC Africa's Godfrey Mutizwa sat down with Albert Muchanga, the Commissioner of the African Union. The commissioner provided valuable insights into the work being done to integrate the continent economically through the AfCFTA. Muchanga highlighted the historical context of this journey, starting from the call for an African Common Market in the 1960s to the recent launch of the AfCFTA in 2018. He emphasized the importance of industrialization in driving intra-African trade, focusing on manufactured goods, agro-processed goods, and services. Implementing the Action Plan on Integrated Industrial Development of Africa is a key step towards achieving this goal. Muchanga also underscored the need for promoting quality, protecting intellectual property rights, and fostering competition through initiatives like the 'Made in Africa' standard. However, he acknowledged that progress in industrialization has been slow, with Africa still heavily reliant on imports for manufactured and food products. Addressing this issue requires a concerted effort in skills development and research and development to ensure the competitiveness of African goods in the global market. Muchanga also stressed the importance of mobilizing the private sector to invest in manufacturing, agro-processing, and distribution to establish an integrated African market. One of the critical challenges identified was the need to enhance logistics and shipping infrastructure within Africa. Current systems often route goods through Europe, causing delays and inefficiencies in intra-African trade. A feasibility study is underway to develop an integrated shipping and logistics network across Africa to facilitate smoother trade flows. Looking ahead, Muchanga outlined key priorities for the AU, including advancing towards the African Customs Union, driving inclusive growth and sustainable development, and promoting export diversification away from raw materials. The commissioner also emphasized the shift towards green industrialization to mitigate carbon emissions while tapping into the continent's resources for green energy production. Overall, the path to African economic integration is multifaceted, requiring collaboration among stakeholders, focusing on industrial development, and harnessing private sector investments to unlock the continent's potential. The conversation with Commissioner Muchanga sheds light on the strides made and the challenges ahead in deepening economic integration in Africa.