African Continental Free Trade Research Articles

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

The purpose of this study was to investigate theoretically the relationship between transformational leadership (the “Magnetic Manager) and organizational success. The transformational leadership and social exchange theories are the underpinning theories for this paper. The literature on the concept of transformational leadership, its forms, and organizational success was thoroughly reviewed. The paper found that a transformational leader is a critical success factor that can bring out changes in employees and the organization as a whole. The study concludes that there is a significant relationship between transformational leadership and organizational success. The study recommended that organisations celebrate successes. Transformational leaders should recognise and celebrate the successes of their followers. This helps to build morale and motivation, which can lead to success. Keywords: Transformational Leadership; Organizational Success; Charisma; Inspirational Motivation

INTERNATIONAL COMMUNITY IN THE GLOBAL DIGITAL ECONOMY: A CASE STUDY ON THE AFRICAN DIGITAL TRADE FRAMEWORK

Abstract Global digital integration is desirable and perhaps even inevitable for most States. However, there is currently no systematic framework or narrative to drive such integration in trade agreements. This article evaluates whether community values can offer a normative foundation for rules governing digital trade. It uses the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol as a case study and argues that identifying and solidifying the collective needs of the African region through this instrument will be key to shaping an inclusive and holistic regional framework. These arguments are substantiated by analysis of the regulation of cross-border data flows, privacy and cybersecurity.

Environmental Policies and Green Technologies: Impacts on Energy Sustainability in the African Continental Free Trade Area.

This research focuses on environmental pollution, a significant concern today due to energy use. Improving ecological sustainability suggests a framework for sustainable energy behaviours. This paper reviews the advances in environmental policies and green technology in designing efficient energy systems, but some gaps remain. The variables considered in this research are analyzed through Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models to determine their effects on energy structures and the environment in 31 of the 55 countries within the AFCFTA. Some main results show that one percentage point improvement in environmental legislation leads to decreased ecological footprints by 9.11% (DOLS) and 20.98% (FMOLS). On the other hand, a one percent increase in green innovations reduces ecological footprints by 0.6% (DOLS) and 1% (FMOLS). Also, service imports reduce sustainability by decreasing it by 2.98% (DOLS) and 1.47% (FMOLS), while service exports improve sustainability by increasing it by 1.59% (DOLS) and 1. 09% (FMOLS). Thus, these results underscore the need to maintain and strengthen environmental legislation and encourage green investments, as well as the importance of green innovation environmental policies and renewable energy to enhance environmental quality.

Ghanaian Small and Medium-Scale Enterprises (SMEs') Readiness for African Continental Free Trade Area (AfCFTA) Implementation

This paper seeks to assess Ghanaian Small and Medium-Scale Enterprises (SMEs') readiness for the African Continental Free Trade Area (AfCFTA) Implementation. The research instrument used to collect data was questionnaires and the study employed descriptive research design. The study randomly selected 250 SMEs from a population of 480 SMEs that were registered members of the Ghana National Chamber of Commerce and Industry, Cape Coast Branch and operating within manufacturing, pharmaceutical, herbal, tourism, hospitality, food and beverage, agribusiness, garment, leather, and textiles. Data collected from the SMEs was analysed using SPSS, version 28. The findings from the study shows that, there is a significant gap between Ghanaian SMEs' readiness for AfCFTA implementation. The study finds out that although majority of SMEs are capable of innovation and developing new products, they also have limited knowledge of export documentation, trade information and infrastructure, trade finance, and funding for expansion. They also have low knowledge and lack a basic understanding of the benefits of AfCFTA, its advantages, components, protocols, and Rules of Origin. The study again revealed that the obstacles facing Ghanaian SMEs exportation are high cost of production, border delays, poor infrastructure, high inflation, difficulty in accessing credit, and language problems. Based on these findings, the study recommended that SMEs needs to be retooled particularly in the area of AfCFTA Rules of Origin, its objectives, components, and Ghana’s trade policy to improve their readiness for AfCFTA implementation. Again, businesses should concentrate more on value addition, and be dedicated to looking for ways to enhance their current or existing products to outperform comparable products from other African nations.

Implementing African Continental Free Trade Area: Lessons from Afro-Pessimists and Afro-Optimists

Global cooperation has been an acceptable strategy for addressing many of the world’s challenges. The African Continental Free Trade Area (AfCFTA) agreement which entered into force on 30 May 2019 was designed in a similar light for Africa’s development. Its objectives among others are to create a single market for goods, and services, and deepen the economic integration of the African continent by the vision of an integrated, prosperous, and peaceful Africa as enshrined in the Agenda 2063. However, these benefits may not be realized unless member states garner concerted and sustained efforts to ensure the effective implementation of the AfCFTA. These efforts often elude most developing countries, and it is against this backdrop that this study attempts to investigate whether the contrasting perspectives of the Afro-pessimists and Afro-optimists could be of relevance to AfCFTA implementation. Using desk review methodology, the study synthesized both empirical and theoretical literature and found that Afro-pessimists are very critical and paint a gloomy picture of Africa. Whereas the Afro-optimists, are more positive looking with the claim that Africa is mistreated and its achievements are inordinately ignored. Significantly, both perspectives deepen understanding of the strengths and weaknesses of Africa’s development, providing a useful context for either the failure or success of the AfCFTA’s implementation. The key lesson the study draws is for Africans to maximize their strengths as much as possible and minimize their weaknesses. This will actualize the “Africa rising” phrase and lead to the majority of Africans rising with Africa.

Morocco, at the Heart of the Harmonization of the African Union's Migration Policies: Context, Complexity, Diversity, Effects and Challenges

Since the mid-1980s, the European Union has adopted a cautious attitude to migratory flows. It has constantly stepped up initiatives to combat immigration, by tightening border controls and reducing the granting of visas, thereby forcing would-be emigrants to look for alternatives. At the same time, Africa is facing unique migration challenges. The consequences of colonization, the imposition of capitalist relations and the development of an extroverted economy, among others, continue to influence current migration dynamics. Persistent economic crises, exacerbated by inequitable global economic policies, are driving many people to seek better opportunities elsewhere. In addition, the effects of climate change, such as desertification, droughts and floods, are intensifying migratory pressures. African countries therefore need to develop effective migration policies to govern migratory flows and respond to geopolitical challenges. It is crucial to put in place regional and international cooperation mechanisms to manage migration in a coordinated and humane manner. This means thinking carefully about migration issues, considering the historical, economic and political realities that shape them. This issue must be at the heart of the concerns of States and the African Union. It is true that attempts are being made at continental level, such as the Kampala Convention and the establishment of the African Continental Free Trade Area (ACFTA), but these measures can only be truly appreciated if they are applied on the ground.

Unlocking Kenya's Export Potential: Opportunities in the African Continental Free Trade Area

Regional trade agreements enhance export market prospects by providing preferential access. Since 1986, Kenya has embraced an export-led growth strategy, unswervingly executing trade liberalization through bilateral, regional, and multilateral trade agreements. This study assesses Kenya's export potential within the African Continental Free Trade Area (AfCFTA) framework, intent on its bilateral trade prospects with six AfCFTA member states namely Cameroon, Egypt, Ghana, Mauritius, Tanzania and Tunisia. Utilizing the stochastic frontier gravity model, the analysis discloses that Kenya’s average export potential is strong, with potential rates of 94% for Cameroon and Tunisia, 66% for Mauritius, 93% for Egypt, 66% for Ghana, and 56% for Tanzania. The findings show that African states possess considerable export potential in agricultural and value-added products. To capitalize on this potential, it is critical to identify specific commodities that align with markets where Kenya's strengths are positioned. The study concludes that a targeted strategy focusing on specific goods for specific markets, along with increased export of agro-processed products through value addition and diversification, can effectively harness this potential.

Innovative approaches to enhancing logistics for adapting to the evolving demands of manufacturing companies in East Africa through improved lean strategies

This article explores innovative approaches to enhancing logistics for manufacturing companies in East Africa through improved lean strategies. The region faces numerous logistical challenges, including poor infrastructure, political instability, and supply chain disruptions. These issues are critical barriers to the competitiveness and growth of East African manufacturers in a globalized market. By adopting lean strategies such as Just-in-Time (JIT) inventory management, Value Stream Mapping (VSM), and Continuous Improvement (Kaizen), companies can streamline their operations, reduce costs, and improve customer satisfaction. The article highlights the importance of localizing lean practices to fit the unique context of East Africa, emphasizing the need for a cultural shift towards continuous improvement and innovation. Additionally, it underscores the role of advanced technologies, public-private partnerships, and regional collaborations in optimizing logistics systems. The future of logistics in East Africa is seen as promising, with opportunities arising from the African Continental Free Trade Area (AfCFTA) and the potential for technological advancements to reshape the logistics landscape. Ultimately, the article calls for concerted efforts from governments, businesses, and NGOs to invest in infrastructure, foster innovation, and promote sustainable logistics practices. By doing so, East African manufacturers can overcome current challenges and position themselves for long-term success in the global market.

Regional trade agreements and economic integration in Africa: assessing the impact of the African Continental Free Trade Area (AFCFTA)

This article examines the impact of Regional Trade Agreements (RTAs) on economic integration in Africa, focusing on the African Continental Free Trade Area (AfCFTA). As the largest free trade area globally, AfCFTA aims to create a unified market for goods and services across 55 African Union member states, fostering economic growth, reducing trade barriers, and enhancing intra-African trade. This article assesses the potential economic benefits of AfCFTA, including increased market access, industrialization, and job creation. It also considers the challenges of implementation, such as infrastructure deficits, varying levels of economic development, and non-tariff barriers. Through case studies of key African economies, including South Africa, Nigeria, and Kenya, the article explores how AfCFTA is reshaping trade dynamics and regional cooperation. Furthermore, it evaluates the role of AfCFTA in addressing Africa’s dependence on external markets and enhancing global competitiveness. The article concludes by providing recommendations for policy reforms, capacity building, and regional cooperation needed to maximize the benefits of AfCFTA. By analyzing both opportunities and challenges, this article offers insights into how AfCFTA can drive deeper economic integration and sustainable development across the African continent.

Breaking Down Barriers: Preparing Africa's Insurance Market for AfCFTA Success

This article examines the regulatory challenges that affect the readiness of the African insurance sector for expansion and integration under the African Continental Free Trade Area (AfCFTA) framework. Employing a mixed-methods research design, the study integrates qualitative interviews with senior industry executives and quantitative survey data from key stakeholders to identify and evaluate the primary regulatory barriers impeding market preparedness. The analysis reveals several critical obstacles, including regulatory fragmentation, inconsistent enforcement of standards, and inadequate cross-border coordination. The findings suggest that addressing these challenges is crucial for realizing the full potential of AfCFTA in the insurance sector. The article concludes by providing strategic recommendations aimed at fostering regulatory coherence, enhancing market readiness, and supporting sustainable growth across Africa’s insurance markets.

Sustainable development goals implementation in a post‐colonial African State: Any future for the African Continental Free Trade Area?

AbstractThis paper examined the prospect of the African Continental Free Trade Agreement in the context of the SDGs. It took its bearing from the contemporary structure of most African states, arguing that the reality of the continent's postcolonial condition could impede the implementation of the AfCFTA. Its refrain is that studies on how Nigeria and South Africa, as regional powers, have used their economic and political influence to advance the SDGs' implementation throughout Africa, using different South–South development frameworks are few. In other words, the institutionalization of a strategic collaboration agenda through a Nigeria‐South Africa‐coordinated African response to the new powers, in the area of timely implementation of the SDGs is lacking. This study affirms that for the AfCFTA to be successful, it is incumbent on the regional hegemons to build a suitable institutional framework and governance structure that upholds the rule of law and encourages harmonization, consistency, and predictability.

Embracing the African continental Free trade Area: Unpacking Malawi’s economy response to trade liberalization

The impact of trade liberalization on Malawi’s economy has been a hotly debated topic. To shed light on the subject, a study was conducted using the PEP-1–1 CGE model and the latest Malawi’s Social Accounting Matrix (SAM) from 2019. The results were eye-opening, revealing the potential effects of the African Continental Free Trade Area (AfCFTA) on various sectors of the economy. The removal of trade tariffs is predicted to have a significant impact on prices, with a decrease of 26.31% in the agricultural sector alone, services (−7.88%), public administration (−9.92%), and manufacturing and industry (−11.23%) imposing hopes of improving food affordability and food security. However, it is expected to have adverse impacts on wage rates in the agricultural sectors (−18.78%), manufacturing and construction (−19.01%), services (−2.79%) and public administration (−15.81%). Additionally, while exports are expected to increase, the country’s balance of payments may suffer as imports are likely to outweigh foreign earnings. This could also lead to a decrease in government revenue from taxes. To mitigate these effects, the study suggests implementing export restructuring strategies, particularly in industries like manufacturing and construction, and promoting diversification of local production to boost competitiveness and improve wage rates. With these measures in place, the government will not only offset potential losses but also tap into new sources of taxable income.

Regional (economic) integration, political stability uncertainty and (intra-African) exports

The economic literature reports ambiguous effects of regional economic integration (REI) and political stability on exports. Therefore, this research analyzes the effects of REI and political stability on intra-African exports, compares them to the effects on intra-African imports and explores the combined effect of REI and political stability on intra-African exports. We use the two-stage least squares and fixed-effects approach which includes the two-step feasible generalized method of moments (GMM) estimation to address endogeneity issues in a panel of 49 African countries over the period of 1996–2022. The results show that REI and political stability lead to an increase in intra-African exports. However, while REI results in an increase in intra-African imports, political stability results in a decrease; similar findings are highlighted for overall intra-African trade as well as for total exports of goods and services. The results remain robust across diverse estimation techniques. Furthermore, they reveal that political stability plays a role in amplifying the relationship between REI and intra-African exports. Supporting the African Continental Free Trade Area agenda, these findings imply that African policymakers need to (i) strengthen REI to increase intra-African trade and (ii) improve political stability to ensure that a greater part of REI is canalized in a more effective way in order to boost intra-African exports.

A Commentary on the Jurisdictional Challenges in the Rand- Dollar Exchange Manipulation "Cartel": Competition Commission of South Africa v Bank of America Merrill Lynch International Designated Activity Company [2023] ZACT 26 (30 March 2023)

Cartels are the most egregious of competition law transgressions, because they entail a concerted effort on the part of cartel members to deliberately distort the market through price fixing, bid rigging, market allocation and constraining the supply of goods and services. Despite efforts by national competition authorities in various countries to combat cartelism, cartels have proved to have long tentacles, often extending beyond borders and morphing into "cross-border cartels". This contribution discusses one of the major challenges that cross-border cartels poses to competition authorities, that of prosecutorial and penal jurisdiction. The note focusses on the "banking cartel" that has been and still is the subject of contentious litigation. In March 2023 the Competition Tribunal (the Tribunal) handed down judgment in the matter of the Competition Commission of South Africa v Bank of America Merrill Lynch International Designated Activity Company [2023] ZACT 26 (30 March 2023). There were several questions in the matter, including the jurisdiction of the South African competition authorities to investigate and prosecute firms not incorporated or operating in South Africa (pure peregrini). The Competition Commission (the Commission) had initiated proceedings in the Tribunal against a host of banks for alleged cartel conduct, and some of the respondent banks raised objections and exceptions relating to the jurisdiction of the South African competition authorities. The note observes that while national competition authorities may have prosecutorial jurisdiction against cross-border cartels, there is still a challenge in enforcing an order where cartels are non-resident in the country. The contribution also notes potential challenges to cartel enforcement on the African continent in light of the establishment of the African Continental Free Trade Area (AfCFTA). Due to the removal of various trade barriers, there is likely to be a rise in cross-border competition issues, including cross-border mergers and cross-border cartels. The note therefore discusses a pertinent issue, that of jurisdiction, which may well be a challenge within the AfCFTA.

Sino-Africa Relations Post-Covid-19: Issues for Consideration

Sino-Africa relations have been periodised into three phases. The first phase (1950s–1970s) includes the establishment of the People’s Republic of China (PRC) in 1949 and the decolonisation of African states. The second phase (1971–1990s) includes the drift of Sino-Soviet relations, the admission of China into the United Nations Security Council (UNSC), as well as the end of the Cold War. The third phase (2000s–2020) covers the inclusion of China into the World Trade Organisation (WTO) in 2001, as well as the establishment of the Forum on China-Africa Cooperation (FOCAC) in 2010. This article considers the fourth phase of Sino-Africa relations, argued to have begun in 2020 post-Covid-19, taking place at a time of de-globalisation, the ongoing Russia-Ukraine war and the US-China trade war. We assert that the latter changing global dynamics must be considered in making sense of Sino-Africa relations today. The article argues that despite such a changing global political order, there have been continuities and changes in China’s relations with the African continent. This is evident in the tightening of its relations with Africa, irrespective of ongoing dynamics in global affairs. Despite concerns about the USA’s reprioritisation of Africa, the establishment of the African Continental Free Trade Area (AfCFTA), China’s Belt and Road Initiative (BRI), vaccine diplomacy, and China and African States’ “neutrality” stance on various ongoing conflicts, it is safe to say that Sino-Africa relations will triumph even in this new phase.

Africa’s lingua franca and its role in the successful implementation of the AfCFTA: a case for Kiswahili as the African commerce and epistemological language

The African Continental Free Trade Area (AfCFTA) is the largest free trade agreement in the world in terms of its membership and it has tremendous potential to lift millions of Africans out of poverty through boosting intra-Africa trade by ensuring that Africa has one gigantic market of over 1.3 billion people. For this to be achieved, this trade agreement must be implemented rapidly and to the letter. This article therefore argues that, among others, the use and adoption of an African indigenous language such as Kiswahili can play an important role in enabling Africans to trade with one another with ease and mutual trust. The adoption and use of this language as a potential lingua franca for commerce and teaching and learning also has the potential to harness the innovation and creativity of Africans as this would be emanating from the age-old ingenuity of our forebears. The main argument made here is that language is both the reservoir and vessel for culture and indigenous knowledge systems (IKS), and without its maximum exploitation, our societies will not industrialise and develop. Methodologically, qualitative semi-open-ended interviews and non-participant observation were conducted in Kenya, Tanzania and South Africa to gauge experts’ views on the utility of Kiswahili as a potential Pan-African language. Pan-Africanism and Afrocentricity are key theories deployed in giving shape to this study.

Foreign Investment in Fragile and Conflict-Affected Situations: Opportunities, Challenges and Prospects

African countries remain stubbornly plagued by fragility and conflict-affected conditions. Out of thirty-seven countries categorized as fragile and conflict-affected states, African countries are nineteen in number representing about 51% of the total states. The remaining African countries that are excluded in this list do not fare better in institutional and social fragility index, nor are they delivering enduring peace and sustainable development to their populace. The African Union (AU)’s approval of the Phase II of the African Continental Free Trade Area Agreement (AfCFTA) constitutes a pragmatic approach to use investment framework to change the climate of fragility and conflict. Foreign investment presents a veritable opportunity to turn the fragile and conflict-affected African states into a hub of peace and development. The increase in international investment brings with it the spillover of skills, know-how and technology into the host state. Additionally, foreign investment increases employment and revenue generation, diversification and improvement in the quality of products and services, and overall improvement in the standard of living. Equitable and inclusive sharing of revenues from natural resources similarly promotes societal cohesion and limits the triggers of institutional fragility. Consequently, this paper seeks to explore the modalities for the use of foreign investment as a pathway to inclusive development in African countries plagued by fragility and conflict.

Competitive Challenges of the Democratic Republic of Congo Companies in the face of African Continental Free Trade Area Agreements

Competitive Challenges of the Democratic Republic of Congo Companies in the face of African Continental Free Trade Area Agreements

Visa-on-arrival, ECOWAS-free Mobility and the Securitisation of the Intra-African Migration in Nigeria

Over the years, Nigeria’s regional hegemonic leadership in (West) Africa, especially within the Economic Community of West African States (ECOWAS) region, has been debated within academic and foreign relations circles. A major component of this regional leadership aspiration was its quest for a ‘borderless Africa’. As an important arrowhead of its pro-African foreign policy, the Nigerian government proactively crafted a benign national border policy to give practical expression to the free mobility of persons and goods within the West African subregion. Despite a demonstrable commitment to free mobility within Africa over the years, Abuja suddenly imposed a restrictive border policy shortly after it signed the African Continental Free Trade Area (AfCFTA) agreement and approved the contentious visa-on-arrival for African migrants. Considering this context, this study makes three arguments: First, it interrogates the rationale behind the liberal border diplomacy of the Nigerian government. Secondly, the paper contends that the inability to ‘silence the guns’ in Africa despite all efforts has seriously militated against the aspiration for intra-African mobility and borderless Community in West Africa. Lastly, the study examines the dire implications of Nigerian nationalistic border diplomacy and its declining soft power for the future of ‘borderless West Africa’.

Management Economic Systems and Governance to Reduce Potential Risks in Digital Silk Road Investments: Legal Cooperation between Hainan Free Trade Port and Ethiopia

This research explores the interplay between innovation, economic systems, governance structures, and law, and how they interact with one another in the context of China and Ethiopia’s investments in the Digital Silk Road. The way cutting-edge methods related to governance and economic systems might help lower the risks involved in major infrastructure projects, like the Digital Silk Road, particularly in light of law and 5G developments, is investigated. China–Africa connections are to be strengthened, sustainable development is to be encouraged, and healthy economic progress is the goal of the partnership between Ethiopia and the Hainan Free Trade Port. The impact of these transnational investments on fair growth and sustainable development is assessed, while exploring the evolving agendas and procedures governing investments. This research draws attention to how the law and legal cooperation between Ethiopia and China may promote mutually advantageous outcomes, promote transparency and governance mechanisms, and lessen the likelihood of disputes. This research on the factors influencing the future of the Digital Silk Road and its consequences for long-term, sustainable economic growth, and business in the area, aims to provide valuable insights for policymakers, development professionals, and academics, and for the copromotion of China and Ethiopia in terms of digital investment. This research relates to the promotion of the African Continental Free Trade Area (AfCFTA), in terms of construction and economic development. It also examines how the DSR raises concerns about data security and privacy, cross-border transactions, technology transfer, and cyberterrorism, as well as encourages digital investment, such as through enhancing digital governance regulations, modernizing international investment agreements (IIAs), and bolstering global health, coordination, and cooperation; the article concludes by analyzing the implications for Africa. The findings show that such cooperation would support Africa’s digital transformation and sustainable development, while strengthening China–Africa cooperation.