African Union

The AfCFTA will continue to face a number of risks that threaten to impede continental integration in favour of fragmentation. Of interest to this post are bilateral trade agreements between African countries, individually or in smaller groups, on the one hand, and non-African countries or regions, on the other.

A response to informality includes the suggestion that policy makers should formalize informal entities and activities. This suggestion holds that, responding to informality in such a way will ultimately help create better jobs, improve productivity and reduce poverty. But then, the question again arises at this point: is formalization the optimal solution? Shouldn’t the focus in the short-term rather be to improve conditions for informal sector actors and the spaces in which they operate than formalize? These are some of the broad challenges facing Africa, the AU and the governments of respective member states and other stakeholders as Africa proceeds with the AfCFTA.

The creation of a single continental unit is meant to allow the formation of larger economies of scale and enhance the region’s specialization in agricultural and industrial production. However, the reduction or even elimination of tariffs will not be enough to reach the AU’s objective of doubling the existing level of intra-African trade, as significant and continent-specific challenges lie ahead.

Hopefully, a sweltering sun in Africa has not caused AU experts to see mirages of intra-regional finance. Providing for intra-African investments in the current context of the continent is like offering classes on how to make planes to students living in countries that cannot yet make cars: Virtually all the real action takes place elsewhere. Instead of negotiating a chapter on investment, delegates must prioritize a chapter on how AU members can build their capacity to engage in deeper economic relations, especially on how to leverage FDIs in natural resources to develop adequate infrastructure for intra-African investment.

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.

Intellectual Property (IP) is one of the three items currently under negotiation in Phase II of the African Continental Free Trade Area (AfCFTA). The AfCFTA negotiations include IP because of the continued relevance of the innovative and creative sectors to trade in goods and services across the globe. With a focus on Pharmaceutical Patents, Plant Variety Protection (PVP), Geographical Indications (GIs) and Traditional Knowledge, this post suggests that the primary purpose of the Protocol on IP in the AfCFTA should be to promote socio-economic development on the continent.

The centralisation of democratic practise in the implementation of AfCFTA will require serious commitment on the part of national and regional officials involved in negotiating the process. A key first step in this respect is the express inclusion of respect for democratic values in the Agreement.

The signing of the consolidated text of the African Continental Free Trade Agreement (AfCFTA) in March 2018 by 47 African Union member States was a significant milestone. It was the first time since the Abuja Treaty of 1994 that a continental trade agreement had been negotiated. This symposium critically appraises the agenda of the AfCFTA. It kicks off with a post that boldly makes the case why this agreement promises to redress the comparatively low levels of intra-regional trade as well as the dearth of high value exports from Africa.

Welcome to Afronomicslaw.org, a blog on the international economic law landscape as it relates to Africa. A major goal of this blog is to complement current analysis of international economic law issues as they relate to Africa in the blogosphere. We believe that this blog is particularly timely because there are significant international economic law developments taking place in Africa that invite more contemporaneous reflection and discussion.