ICBT

In this essay, I argue that while the Zero Draft and Elements Paper recognize the role of trade as a driver of economic growth and development, particularly through regional integration and increased trade finance, these documents fall short of addressing the structural barriers that prevent marginalized trade actors—such as informal cross-border traders (ICBTs), women, and SMEs—from fully participating in and benefiting from trade-driven development. To ensure that trade genuinely fosters inclusive development, the financing for development agenda must move beyond broad commitments and explicitly integrate policies that support marginalized trade actors, particularly within frameworks like the African Continental Free Trade Area (AfCFTA). The following sections critically assess the strengths and gaps in the Zero Draft and Elements Paper and propose targeted policy interventions to enhance inclusivity in trade finance and development.

This low level of priority accorded to the social impact of the AfCTA contradicts the core values and aspirations of the African Union (AU). Most notably Article 3 (g) and 4 (c), (I), (m), and (n) of the AU Constitutive Act which all envisage an African Union that is democratic, inclusive, open to the participation of stakeholders, and sensitive to social concerns in the pursuit of economic development. However, going by what transpired prior to Kigali, it appears that priority was not accorded to these concerns mentioned above. More importantly, the recent hiccups experienced at the Kigali Summit are evidence that dialoguing with a broad range of stakeholders about the impact of trade on social structures is vital to the attainment of legitimate and effective economic agreements in Africa.

In order for the benefits of the AfCFTA to trickle down, African countries need to adequately consider ICBT when designing and implementing trade policies. Trade policies will be incompletely conceived and may not sustain the economic development goals that integration is supposed to deliver if African countries do not adopt a holistic approach that recognizes the importance of ICBT.