The political economy of the African Continental Free Trade Area and structural transformation in Africa

Abstract

ABSTRACTThe post-colonial economy of African countries has continued to manifest all the characteristics of its colonial origins in terms of its structure, direction, and composition. Export of primary commodities continue to take precedence over exports of manufactured products. The African Continental Free Trade Area emerged after series of negotiations to address the problem of structural transformation through value added production, services and increased agglomeration in African economies. This paper examines the extent to which the AfCFTA can foster structural transformation and socio-economic development in Africa. The paper found that despite the challenges that may affect the implementation of the agreement, AfCFTA holds great potentials for the realisation of the social transformation in Africa through creation of regional value chains, unlocking the opportunities in free movement of factors of production and enhancing a stronger voice for Africa in the negotiation of trade and investment agreements with other regions of the world.