THE AFRICAN CONTINENTAL FREE TRADE AREA AND REGIONAL ECONOMIC INTEGRATION: POTENTIAL ECONOMIC BENEFITS AND CHALLENGES

Abstract

The paper examined the African Continental Free Trade Area with a view to assessing its potential economic benefits and challenges for regional economic integration. The paper adopted qualitative methodology and approach in obtaining relevant data towards achieving the objectives. Specifically, qualitative data were obtained from secondary sources such as books, journals, periodicals as well as official documents. It argues that the number of states accepting regional economic integration initiative such as the AfCFTA is one of the major features of globalization whose benefits have not been evenly distributed among nations. It argues further that the African Continental Free Trade Area (AfCFTA) presents a major opportunity for African countries to pull 30 million people out of extreme poverty and to raise the income level of 68 million others who live on less than $5.50 per day. The paper reveals that with the implementation of AfCFTA, trade facilitation measures that cut red tape and simplify customs procedures would drive $292 billion of the $450 billion in potential income gains. That is to say, that implementing AfCFTA would help usher in the kinds of deep reforms necessary to enhance long term growth in African countries. It further reveals that the African Continental Free Trade Area (AfCFTA) agreement is capable of creating the largest free trade area in the world measuring the number of countries participating in the agreement. It concludes that achieving economic prosperity by 2063 is such a long period, but African countries must adhere strictly to the principles and objectives of the agreement and avoid anything that will cut short the life span. The paper recommends that the African Union should as much as possible, ensure the protection of the key interests of participating member states by launching in-depth studies as well as mandating member states to commission nationwide enlightenment and sensitization programmes on the AfCFTA so as to give it regional acceptance. It recommends further that the key planners and players should focus implementation on security and terrorism, abide by the agreement of the AfCFA, avoid conflictual policies that may affect free trade especially domestic policies and ensure the availability of adequate transportation system such as road and rail networks.