Capacity Imperatives for the Realization of the African Continental Free Trade Area: Issues and Policy Options

Abstract

The African Continental Free Trade Area (AfCFTA) was launched in 2018 with a focus to create a common market for goods, services and investment while allowing for the free movement of persons. While the AfCFTA offered potential advantages in terms of increased welfare and higher level of intra-African trade, some capacity issues need to be tackled to ensure successful implementation of the Agreement. Some of the challenges include African countries’ ability and willingness to implement the AfCFTA domestically and support African Union (AU) institutions for this purpose, failures in fulfilling countries’ obligations, and the availability and readiness of quality human and institutional capacities. The main objective of this chapter is to highlight the capacity imperatives and propose some actions for a successful implementation of the AfCFTA as African governments are moving forward in establishing the continent-wide free trade area. The chapter shows that there is need to use and support existing continental bodies and Regional Economic Communities (RECs). However, most of the capacities needed for supporting the successful implementation of the AfCFTA rest at the country level—the public and private sectors. The private sector and partner institutions should join efforts to strengthen capacities in such areas as the ratification, domestication and development of national AfCFTA strategies, the implementation of the Action Plan for Boosting Intra-African Trade and the Africa Mining Vision, development of the critical mass of technical skills as well as institutional and ‘soft’ capacities.