Implementing AfCFTA: What is in it for youths?

It is said that “a nation with large human capital base and wealth of natural resources should be advanced in development and experience immerse civilization”. However, while it is true that Africa as a continent is in no small ways blessed in all kinds of resources, her present reality does not validate that claim. As of now, only a handful of her entity states rank’s considerably key indicators such as infrastructural development- which of the eight (8) countries above average, Seychelles leads with 96.73 per cent, and education where the country is the only African state in the top 50 on the global metric. Also, she has a collective debt running over more than 283 billion USD, with one of her member state Sudan to be precise having been sunk so deep in debt that it gained global empathy for a 14 billion USD debt relief. All this are the reality even when the continent is rich in vigour, creativity and numerous valuable materials and should have nothing to do with neck-breaking debts, rather it should sit on the giving end of aids matter.

While debts in their selves are not a thing of shame, since capitalist nations such as The United State and China have accumulated debts in excess of 20 trillion USD and 8.2 trillion USD respectively, however, productive use of debt is a way towards growth. Simply, a debt must pay debt and then foster development.

Nevertheless, like the Western- Nigeria (A western African state) adage puts it, “onakan o woja”, translated to mean “there are many routes to the market”. Simply, debts are not the only way towards development. As debts enable development, so also does trade. Trade, according to Investopedia, is a basic economic concept involving the buying and selling of goods and services with the compensation paid by a buyer to a seller or the exchange of goods or services between parties. Trade could be further categorized into Home Trade and Foreign Trade. Home Trade, also called domestic trade, is the trade that takes place within a country. Whilst foreign trade, also known as international trade, is trade between a country and others. The need for foreign trade arises because individual states are not equally endowed with resources. So, outsourcing and external trade is vital to meet internal demands.

Africa countries like every other part of the world trades. As of 2019, member states traded aggressively with a total value of transactions peaking in the range of 750 billion USD. However, with the bulk of valued traded underdevelopment lingers as her reality indicate. It has thus left questions in the heart of many, is Trade truly potent for development? Well, indeed, trade is potent, as it brings diverse opportunities to all. However, the kind of trade in which African states members have engaged for a long time cannot bring continental shared prosperity. While it’s undeniable that the nations have efficiently mastered home trade, she still lacks greatly in regional trade- a kind of international trade, which could be best put as continental trade.

Continental trade, is the trading activities between countries of a region. Continent such as Europe have European bloc which forms a collective power in which trading activities go with, so also does the Asia continent have theirs, same as America. Although intra-Africa trade is low, it is not less of continental trade. Statistically, compared to other regions of the world like Europe, Asia, and America involved in intra-regional trade which sits around 68.1 %, 59.4% and 55% respectively, the intra-Africa export crawls at 16%, which subtly indicates why the continent trades so much, yet, grows so little. This low intra-trade amongst many can be pointed to the continent poor infrastructure. It remains more expensive for an operating factory in Accra, Ghana, to import coffee from Rwanda than from a Paris-based company, for instance. All these have been made worse by the COVID pandemic.

The year 2020, would remain memorable as many would hardly forget the diverse heart-breaking incident that filled the global space. As the global supply chain was broken, crude oil prices fell into the negatives, so also did social turmoil arose and political unrest occurs, as in the case of the Black lives matter and the endsars movement respectively. Common to all these is that Africans were not prepared for it. The waves of shocks aside the cracks in Africa’s structure showed the fragility of what African states have long depended upon and the need for a new path towards development. As said, this new path is Regionalization. So, to make regional trade work which in turn would foster and strengthen Continental trade, Africa Continental Free Trade Agreement famed as AfCFTA was initiated.

Although the initiative was long thought off, well before the advent of the COVID- 19 pandemic, the pandemic increased its relevance and strengthened political attention. AfCFTA is an agreement that enables the free movement of goods and services as it seeks to unify fragmented markets into a singular entity*. It would cover Trade in Goods and Services, Investment, Intellectual Property Rights and Competition Policy*. It needs arises since most African companies are small, and thus it is hard for them to individually attract funds that have developmental potentials. Africa’s Technology boom and China’s voyage into specific countries, such as Nigeria, Kenya, South Africa and Egypt is a testament that many are scared of other parts of the continent, even when these parts have huge potentials as they have a large base of non-consumers on across a broad variety. So, in simple terms, the trade agreement would de-risk the market, and in doing this improve the overall state of the continent. This shared prosperity would have the greatest impact on a set of demography, the youth. It would provide the following to them:

Employment.  To sustain trade, the manufacturing sector would rise. It would eventually make the creativity, intelligence and tenacity of productive use. By doubling the investment in manufacturing to $1 trillion, the creation of 14 million new stable jobs would be attainable.

Cultural Integration. Aside from the Nigeria and Ghana Jollof fight, there is little interaction between African. And the knowledge we have about each other is small. I must admit I just got to know about Seychelles, which is home to numerous beaches, coral reefs and nature reserves, as well as rare animals such as giant Aldabra tortoises. I would have missed out on the knowledge of this country and lived in complete ignorance that rather than search Miami beach, there are many around me.

Improved sense of worth and dignity. Nothing improves a human sense of worth than self-knowledge. Self-knowledge would be built as one incrementally and comfortably shoulder responsibilities. As the tariff and the cross-border limitations are made non-existent, Small and Medium Scale Entrepreneurs would rise. These entrepreneurs, who pioneer most jobs, would have no time to engage in anti-social activities. All this, in turn, would drastically reduce the insecurity and crime rate on the continent as no human would work so hard only to self destruct.

Advancement in Knowledge. Beyond the profits that would emerge on the continent, there would be a push in the boundaries of knowledge. As trade occurs and profits accumulated, the need for research for development would arise. It would cause the continent to have not only might that works, but minds that think. At the advent of this, the continent would be experience increased civilization tailored to her desire.

Political Involvement. If there is anything one is certain of it is that both the Nigerian government and the Ugandan government have seen that the youths are ready for their future just as they displayed in the EndSars and Bobi Wine movement. With AfCFTA, there is shared voice as by trading with my suppliers and customers I can have wedge geo-political influence through to laws of demands and supply to initiate the desired Continental change Many youth now know that wars are won by the simple laws of economics.

So, the implementation of a regional trade is beyond the words of mouths. It is a real force which has the power to shift the continent from mere global speculators to global dictators. However, this would not happen if the youth do not see themselves as crucial players in it implementation. To say that the agreement trade is a gift by other for the benefit of the youth is half truth, the trade agreement cannot work without the actions of the youth. The  youths matters. So, if this lofty goal is to be realized the youth must be given their rightful place, else, the continent would remain crawling.