African Continental Free Trade Area Research Articles

Elimination of Discrimination Against Women and the African Continental Free Trade Area

Abstract Article 4 of the Protocol on the Free Movement of Persons, provides against the discrimination of nationals of state parties to the treaty based on their sex. The discrimination against women extends to stereotypes that often put them at risk in other countries where they might be domiciled. And this is further worsened by the fact that many of these women are not informed about their rights. The study would focus on the issues that result from the discrimination against women in Africa and how this would impact women’s economic capacity to trade within the African Continental Free Trade Area (AfCFTA). This research engaged the doctrinal approach and the Realistic Conflict Theory. Content analysis was done on the Agreement Establishing the African Continental Free Trade Area Protocol on Trade and Services, the Protocol on the Free Movement of Persons, institutional reports, and journal articles. This study concluded on the opportunities that the inclusive approach of the AfCFTA could bring, if states could leverage on the AfCFTA through states mechanisms to provide equitable means for women to thrive in an export sector, culturally inclined to constrain gender inclusion.

African Continental Free Trade Area Agreement investor protection and capital market in Africa

Purpose The purpose of this paper is to explore the modalities for the curtailment of expropriation of investment in the course of implementation of the African Continental Free Trade Area (AfCFTA) Agreement and to ensure that the African capital markets contribute robustly to economic growth. Design/methodology/approach The paper relies on the doctrinal approach to assess the state of play and the prospects for the future. Findings The paper found that African capital markets are fragmented and continue to suffer from poor investor protection which lowers market confidence. Originality/value The paper offers new insights on the regulatory approaches to foster investor protection in light of the emergence of the AfCFTA, regulation of executive compensation and need for harmonization of best practices across African markets.

The Liberating Effects of Nigeria to African Continental Free Trade Area: Synoptic Perspectives

This article examines the African Continental Free Trade Area (AfCFTA), with special attention to its goals, background, challenges, and effects on Nigeria. Africa has abundant natural resources and a diverse range of cultures, but it also faces challenges like poor infrastructure and ineffective governments, which limit trade throughout the continent. Recall, AfCFTA was created in 2018 with the intention of creating a competitive single African market by eliminating tariffs and other barriers. The AfCFTA aims to eliminate tariffs, standardize customs procedures, resolve disputes amicably, and cooperate in addressing technical barriers. Hence, this study delved into the synoptic perspective of the liberating impacts of the African Continental Free Trade Area (AfCFTA) agreement., especially on Nigeria trade relations. The liberation needed cloches were: weak infrastructure development, slow trade facilitation, and under standardization. Hence, by economically engaging in AfCFTA, created pathway for access to more affordable goods. Although, unfulfilled trade obligations posed a cog on the implementation Wheel. However, liberation is set for infrastructure development, increased exports, better trade facilitation, and institutional development Keywords: Africa; Economic Liberation; Nigeria; Free trade

Protecting the patient’s data in the 21st century healthcare industry: Is the African continent ready for the digital space?

To ensure proper healthcare services and automation, including minimising medical errors and providing faster and more efficient healthcare, the medical field is experiencing innovative technological trends. They include automated patient records, hospital management system software, telemedicine, and the use of artificial intelligence devices. These innovations exist in more than just the global north, as they are slowly finding residence in African countries. Focusing on automated patient record, the article examines existing data protection legal frameworks in Africa to ascertain whether they provide effective remedy mechanisms patients can access should a breach occur. Taking cognisance of the current African Continental Free Trade Area Agreement (AfCFTA) aimed at creating a single market for goods and services; it is evident that healthcare services might have a continental approach. Thus, the article adopts a continental, regional, and national perspective. Using doctrinal method, the article compares the African Union Data Protection Convention with the European Union General Data Protection Regulation to draw lessons from the European Union Experience. The article finds that strengthened national mechanisms might provide the requisite remedy mechanisms patients can access to ensure enforcement of their rights to data protection.

African continental free trade area and greenfield investment: Likely effect and transmission channels

AbstractWe examine the likely effect of the African Continental Free Trade Area (AfCFTA) on African investment using data on announced greenfield investment. Departing from existing work on this subject, we add value by providing estimates based on a general equilibrium counterfactual analysis in a structural gravity framework. Results suggest that the stock of announced intra‐African greenfield investment in 2018 would have increased by 0.7 percent from a successful implementation of the AfCFTA in that year relative to the baseline scenario of no agreement, with considerable heterogeneity across source and destination countries. Moreover, the positive effect is found to increase with the depth of the negotiated agreement. Exploring possible transmission channels we find the trade elasticity of announced greenfield investment to be positive, especially for trade in intermediates in African host countries with strong governance indicators. This suggests that, by improving institutional quality and galvanising regional value chains, integration within Africa could also incentivise investment.

Globalization and capital formation in Nigeria

No country can achieve sustained economic growth without substantial investments in capital formation. Nigeria is rich in natural resources but due to inadequate capital and technology, these resources have not been fully tapped and maximized. This study seeks to provide another gate way to unlocking the dearth of capital formation for development by specifically investigating the impact of financial and trade globalization on capital formation in Nigeria within the period 1990–2022. Autoregressive distributed lag (ARDL) technique was adopted for data analysis. The findings of this study indicate that while trade globalization has negative effect on capital formation in both the long run and short run respectively, financial globalization exerts negative effect on capital formation in the long run but a positive effect in the short run. Nevertheless, Financial and trade globalization exert detrimental effect on capital formation in the long run. A major policy recommendation is that Nigeria should play a key role in the African Continental Free Trade Area in order to boost her trade and financial competitiveness within Africa and so be able to lunch herself into the global space, and thus tap the potential benefits of trade and financial globalization.

A new era for African health systems: Market shaping and the African Continental Free Trade Area (AfCFTA)

AbstractThe COVID‐19 pandemic has forced a reflection on the origins of supplies in African healthcare market and underscored the need for an increase in local manufacturing of medical supplies. Several African countries’ health markets have been heavily reliant on imports. First, this article demonstrates how the African healthcare market has had a high import dependency and the role that the African Continental Free Trade Area (AfCFTA) could play to reverse this. It is estimated that African countries import between 80% and 94% of medical supplies, 75% of testing kits, between 70% and 95% of pharmaceuticals, and 99% of vaccines. Second, during the COVID‐19 pandemic, countries imposed export restrictions which impacted the flow of medical supplies to African countries. This finding highlighted the limited production capabilities on the African continent and reiterated the need to strengthen continental value chains and local manufacturing capacity to establish the continent's New Public Health Order. Third, there was the emergence of local innovations seeking to minimize the impact of these supply chain disruptions. Using case studies on the local production of COVID‐19 testing kits and personal protective equipment, the article highlights progress made toward health market reform. It calls attention to the implementation of the AfCFTA to strengthen the supply, manufacturing, and trade of medical resources. Fourth, this article highlights countries that have African‐made pharmaceuticals and vaccinations and the importance of regional hubs to expand these products in African healthcare markets. It concludes by discussing investments made to expand local manufacturing of health products.

The AfCFTA tariff offers: Current state and first revelations about members' stances towards openness and protectionism

AbstractMost signatories of the African Continental Free Trade Area (AfCFTA) agreement have submitted tariff concession offers, as published on the AfCFTA Secretariat's website. Over a year since the AfCFTA came into effect, it is time to take stock of these submissions and assess the data with respect to members' stances towards fostering intra‐African trade through openness on the one hand and maintaining protection against competing imports and revenues from import tariffs on the other. Combining the offers with corresponding trade and tariff data, we find that there are both significant data gaps and inconsistencies with the AfCFTA's trade liberalisation modalities and the trade classification standard. Constructing two tariff schedules, one which repairs the offers for compliance with the modalities and another that maximises the import tariff revenue retained as a benchmark, the analysis confirms that the modalities require regions to liberalise strongly, but most opt to liberalise even more and earlier than necessary. Stances towards freer trade, however, differ markedly between regions. Deriving a measure of liberalisation stance from the schedules above and associating it with trade, economic and geographic indicators reveals patterns that suggest potential motivations for the stances of some country groups.

The tax revenue implication of trade liberalisation in sub‐Saharan Africa: Some new evidence

The tax revenue implication of trade liberalisation in sub‐Saharan Africa: Some new evidence

African Continental Free Trade Area and Regional Trade in ICT and Digital Technologies

This study examines the impact of the African Continental Free Trade Area (AfCFTA) on regional trade in the Information and Communication Technology (ICT) and Digital Technologies (DT) sector across 43 African countries from 2014 to 2021. Employing the augmented gravity model and confidence-level estimations, it highlights AfCFTA's mediating role in enabling ICT&DT trade on the continent. Using hierarchical regression analysis of a panel dataset comprising 5,160 observations, the findings imply that trade openness and productive capacities not only facilitate trade in the ICT&DT sector but also result in positive spillover effects across various economic sectors. This study contributes to the international business literature by refining the application of the gravity model to capture the need for sector-specific analyses to unpack institutional dynamics and dis-enablers of trade. It identifies AfCFTA as a pivotal yet underexplored element in the global trade landscape, highlighting its potential as Africa seeks a more prominent role on the global stage. The research stresses the significance of digital empowerment and policy reforms to maximise the benefits of regional integration under AfCFTA.

Prospects and challenges of achieving structural transformation in Africa through the African Continental Free Trade Area

The African Continental Free Trade Area (AfCFTA) agreement seeks to integrate markets in Africa into one large market. With the growing concerns about continental integration, this study identifies prospects and challenges of achieving structural transformation in Africa through the AfCFTA. The study employs the Interactive Structural Modelling technique, which helps to develop a contextual relationship between the factors in terms of their driving power or dependence power. The results indicate that unequal trade and investment opportunities, poor infrastructure, poor access to development finance, and the degree of industrialisation have a high driving power, hence a greater potential to create a ripple effect on other factors associated with African integration. Based on the findings, this study recommends that a platform be created within the agreement where these challenges can be tackled. In this view, the establishment of various development finance institutions monitored and facilitated by the AfCFTA affiliates, could be explored.

Sustainable Development Under AfCFTA: Dimensions, Limitations and Prospects

Abstract Sustainable development constitutes a catch phrase for integrated and inclusive development more so in Africa that is battling with development challenges. Despite its legitimization at the highest institutional level, a principal impediment encountered in the concretization of sustainable development principles (environmental, social and economic) in Africa remains the enforcement conundrum. The situation is compounded by indifference of the state and non-state actors. Cases of environmental damage, social malpractices and economic marginalization in the execution of trade and investment policies are largely treated with levity, with prioritization accorded to financial accruals over disciplining delinquent behaviour. Consequently, the emergence of the African Continental Free Trade Area Agreement (AfCFTA) with provisions on sustainable development renews hope for the concretization of the sustainable development principles in Africa. A crystallization of effective enforcement of sustainable development principles is deeply intertwined with an existence of an effective peer-review mechanism with a network of reporting linkages. Arguably, effective peer review system is fundamental to assessment of state of play, investigation of violations, collation of reports, and institutional strengthening to change the dynamics in favour of improved performance.

A framework of African Continental Free Trade Area dispute settlement mechanism: legal challenges

Abstract African countries have recently signed an ambitious and progressive trade pact titled the African Continental Free Trade Area (AfCFTA) agreement. The agreement establishes a free trade area, which also includes a dispute settlement mechanism (DSM). African countries further agreed on the Protocol on Rules and Procedures on the Settlement of Disputes to establish and regulate the process of the DSM. The Dispute Settlement Body formally launched its business on 26 April 2021. The Agreement and the Protocol are the first of the kind in the continent and are on the verge of implementation. Given that, the article examines the AfCFTA Agreement and the Protocol on Rules and Procedures on the Settlement of Disputes. Accordingly, the article finds that the Agreement and the Protocol involve some legal challenges that will constrain the efficacy of the DSM in the continent.

The dynamics of green innovation, environmental policy and energy structure for environmental sustainability; Evidence from AfCFTA countries

Environmental pollution caused by many factors including energy use has been a major problem around the world. A sustainable energy structure can help improve environmental sustainability. The roles of green innovation and environmental policies in determining an effective energy structure and achieving environmental sustainability have gained attention in recent research, but there are gaps to fill. Given the rapid development and unification of Africa to boost economies, this article aims to establish whether or not green innovation and environmental policies have influenced energy structure and environmental sustainability. Thirty-one (31) countries out of the 55 African Continental Free Trade Area (AfCFTA) countries were used in the analysis. The study adopted the Fully modified ordinary least squares (FMOLS) and the Dynamic ordinary least squares (DOLS) models in its analysis. Major empirical results revealed that a 1% increase in green innovations reduces ecological footprints by 0.7% and 1% (DOLS and FMOLS). Also, a percentage increase in environmental policies can reduce ecological footprints by 10.12% (DOLS) and 21.87% (FMOLS). A 1% rise in renewable energy improves their environmental sustainability by 3.26% (DOLS) and 1.82% (FMOLS). A 1% consumption of non-renewable energy reduces environmental sustainability by 4.59% (DOLS) and 1.55% (FMOLS). These results provide insights into the importance of green innovation, environmental policy, and renewable energy in improving environmental sustainability. Stringent measures and policies to boost green investment, sustainable energies, and environmental sustainability are necessary for the region.

Transition to Polycentrism and the Transformation of Regional Trade Agreements

Regional trade agreements (RTAs) are important instruments of the world trade system, which have been increasingly developed in recent decades, since they complement the existing World Trade Organization (WTO) and WTO+ agreements and allow taking into account the specificities of regions. The principle of ensuring non-discriminatory trade is the main principle of multilateral trade of the WTO, or in other words, observes the rule of not favoring one trading partner over another. RTAs are, in fact, an exception to this approach, as it is the signatories that enjoy more favorable market access conditions. At the same time, the WTO recognizes the legitimate role of RTAs in facilitating trade between their parties, but requires that they not create barriers to trade with third parties. RTAs cover more than half of world trade, and new transcontinental agreements have been concluded in recent years: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Comprehensive Regional Economic Partnership, and the African Continental Free Trade Area. There are different types of RTAs in international cooperation, ranging from free trade agreements to common markets, including between countries of a territorially contiguous or transcontinental nature, based on WTO and WTO+ agreements or protectionist in nature. The article reflects the consequences for the national economies of developing countries, it is revealed that the European Union in the RTAs is actively promoting its values as the absolute truth for all peoples and nations, and their non-acceptance is considered as a factor causing possible restrictions. Other developed economies have also imposed obligations on signatories in terms of ensuring the transformation of the national economies of developing countries, but in recent years this trend has weakened somewhat. China, initiating the RTA, pursues the realization of its national interests, without imposing any political, mental or social aspects, and at the same time is ready to develop mutually acceptable compromises. The transformation of RTАs in modern conditions is carried out in three basic directions: preference for the preservation of full sovereignty by the signatory countries; the inclusion of articles that condition the promotion of sustainable development; control and monitoring to ensure compliance with labor safety regulations, non-damage to the ecological environment, as well as the use of tools of responsible corporate business conduct.

The AfCFTA: An Enabler or Hindrance of China-Africa Trade?

China is flooding Africa with its products. This phenomenon is referred to by various scholars and commentators as the “dumping” of cheap manufactured goods on the continent. Using terms such as “zhing-zhongs” in Zimbabwe and “fong-kongs” in South Africa to refer to the inauthentic cheap goods that mostly bear a “Made in China” label, China is said to have influenced the growing unemployment and closing of firms in Africa. This article investigates whether or not the African Continental Free Trade Area (AfCFTA) enables or hinders trade relations between China and Africa. Admittedly, the agreement is said to be a solution to enabling intra-trade in Africa. This intra-trade is also a positive response to Africans to not rely exclusively on China's manufactured goods but also produce and consume their own products. Through the AfCFTA, it is argued that the “Made in Africa” label will override China's finished goods in the long term. Given that China is not only the world's largest manufacturing hub but Africa's largest trading partner, the implications of China's manufactured goods in Africa is a terrain worth investigating. The article argues that although the AfCFTA is a stepping stone for intra-trade on the continent, the benefits of the agreement will not be realised anytime soon because of various challenges such as limited infrastructure, the affordability of the manufactured goods, and the convenience of having readily available products at the time of purchase.

Leveraging the Potential of the African Continental Free Trade Area: Logistics Challenges and Development Paths for Future Value Chains in Africa

Background: With a rapidly growing young population, the African continent provides a high but barely exploited economic potential. Creating an African free trade zone is one of the African Union’s major initiatives to increase prosperity. Even though the AfCFTA has already come into force, its potential has not yet been fully exploited. This study investigates the logistics challenges associated with the AfCFTA and potential solutions and development paths for future value chains. Methods: The study builds upon a two-stage research process. First, applying the Nominal Group Technique with a group of 19 industry experts, current challenges and strategies to deal with them are conducted, and statements about potential development paths emerging from the AfCFTA are synthesized. Second, a questionnaire among additional industry experts is done to assess the results of the first stage. Results: The article sheds light on the barely untapped field of logistics challenges hindering the AfCFTA to leverage its potential. Strategy fields to address current challenges are explained, and the first indications of how the AfCFTA will shape supply chains in the mid-term are outlined. Conclusions: The article underlines the importance of logistics in the development of pan-African value chains and highlights potential development paths that may arise in the medium term. It also emphasizes the growing need for cooperation between politics, business, and research to overcome current logistics challenges and leverage the potential of the AfCFTA.

Critical factors to consider in the trade–security nexus of the African Continental Free Trade Area: A catalyst for establishing peace

ABSTRACT This study examines the geostrategic importance of the African Continental Free Trade Area (AfCFTA), discusses its potential trade impacts on African states, and considers whether it could support regional peace. Regional integration is crucial for achieving industrialisation, promoting trade across African borders, and preserving regional peace and security. Inextricably linked to regional integration is a security community comprising a distinct group of individuals for whom the likelihood of large-scale conflict or violence has diminished. A comparative analysis was conducted using Africa’s trade patterns, milestones, and achievements during 2015–2017 and 2022–2023. Subsequently, the key causes of insecurity on the African continent were explored, focusing on the Regional Economic Communities and states embroiled in coups during 2020–2023. The findings suggest that African authorities view the AfCFTA positively and believe economic integration may bring about peace. However, African authorities would require a strong continental strategy – supported by robust regional and national programmes – to promote investor confidence and trade, considering Africa’s high levels of intercommunal violence, civil unrest, violent extremism, terrorism, and transnational crime. The AfCFTA delayed trade liberalisation to protect Africa’s less developed economies, resulting in poor working conditions, intellectual capital loss, and decreased tax collection.

Economic Transition Opportunities for Nigeria in joining the African Continental Free Trade Area

This article explores the African Continental Free Trade Area (AfCFTA) and its implications for Nigeria. AfCFTA, established in 2018, aims to create a competitive single African market by eliminating tariffs and barriers, fostering economic growth, job creation, and industrialization. The nature of trade in Continental Africa has been more with the rest of other continents than within Africa. Then comes the question of what is standing on the way of inter and intra Africa trade. With trade we can unlock Africa growth and development and by so doing, we can improve per capita income in the continent and by so doing reduce poverty in Africa. The article discusses the objectives and challenges of AfCFTA, emphasizing the importance of infrastructure, regulatory harmonization, and trade facilitation. For Nigeria, Africa’s largest economy, joining AfCFTA offers expanded market access, job opportunities, and economic diversification. The government’s rationale for participation includes promoting industrialization, increasing export opportunities, and improving trade balance and foreign exchange reserves. The reality is that we all need each other to get the wheel of life going. Keywords: , Globalization, AfCFTA, Regional Trade, Trade balance

The Growth Prospects for Nigeria in Joining the African Continental Free Trade Area

This paper examines the potential benefits and challenges of Nigeria joining the African Continental Free Trade Area (AfCFTA) agreement, which aims to create a single market for goods and services across Africa. Using a computable general equilibrium model, we simulate the effects of trade liberalization under different scenarios of tariff reduction, trade facilitation, and regional integration. We find that Nigeria stands to gain from participating in the AfCFTA, especially if it is accompanied by improvements in infrastructure, customs procedures, and regulatory harmonization. However, we also identify some potential costs and risks, such as trade diversion, revenue loss, and adjustment costs for some sectors and regions. We recommend that Nigeria adopts a proactive and strategic approach to maximize the opportunities and mitigate the challenges of the AfCFTA, such as diversifying its export basket, enhancing its competitiveness, strengthening its domestic policies, and engaging in regional cooperation. Keywords: AfCFTA, Nigeria, trade liberalization, regional integration, computable general equilibrium model