African Continental Free Trade Research Articles

Examining current regional intensity of trade in Africa: How strong are the trade linkages and implications for intra-Africa trade in the African Continental Free Trade Area

Examining current regional intensity of trade in Africa: How strong are the trade linkages and implications for intra-Africa trade in the African Continental Free Trade Area

The Prospects of AfCFTA in Promoting Industrialization and Economic Diversification in Africa

African Continental Free Trade Area (AfCFTA) functions as a boost for Africa's economic development by enhancing intra-African trade. This is because trade is an engine of growth and development. For the fact that most African nations that are located within the same region engage in similar and competitive production, the ensuing economic cooperation and trade exchanges not only have the promise of increasing trade but also stimulating other ancillary economic activities, creating new job opportunities, speeding up economic growth, promote the standard of living, and promote economic development. However, AfCFTA's record has not been very impressive. The main obstacles to intra- regional commerce among African countries include heavy reliance on trade in primary goods, high product and market concentration of exports, and inadequate regional manufacturing networks. This study therefore examines continental economic trends and Intra African Trade: Prospects for African Continental Free Trade Area. The study adopted qualitative methods of data collection and analysis and the comparative theory of integration. The study found that the low level of trade diversification implicated the capacity of the African Continental Free Trade Area (AfCFTA) to achieve improved intra-regional trade performances in Africa. African countries maintain as much as 77% export specialization, with higher external/world trade at 84.6 percent of their total import and export trade. The study recommended that Governments should invest in infrastructure development, including building roads, railways, ports, and airports, as well as improving access to electricity and broadband. Governments should adopt modern trade facilitation measures such as electronic customs systems, single window platforms, and risk management techniques and should align their technical regulations and norms with global best practices and standards, as those created by appropriate international standard-setting organisations like the International Organisation for Standardisation (ISO).

Intra-Africa trade and the need to rethink the neo-liberal approach

Notwithstanding past trade reforms, trade in Africa and particularly intra-Africa trade, remain dismal. Africa has even created economic communities, fitted with monetary, fiscal, and socio-political anchors, by way of various Regional Economic Communities (RECs) – now reflected by the African Continental Free Trade Area (AfCFTA). Whilst these have yielded marginal benefits, the persistence of low intra-Africa trade calls into question their suitability. Focused on the realities of institutions targeted by these reforms and Africa's context – i.e., weak linkages between institutions, high informality, and low social capital – we posit that reforms have not elicited the hoped-for high intra-Africa trade because of their near total reliance on the neo-liberal approach, which neglects Africa's context. Drawing on Africa's sociology and new institutional economics, we use a conceptual institutional analysis to evolve a political economy based framework that suggests potential solutions: Linking the formal sector that currently underpins economic/trade policies to the informal institutions that are reflective of Africa's norms, values, cultures and expectations (the informal sector), and scaling up production; via the cooperatives production model, strategic procurement mandates, and effectuation of continental transportation infrastructure network, are our recommended pathways to reversing the current dismal intra-continental trade.

African Continent Free Trade Area Development Strategy Analysis

The establishment of the African Continental Free Trade Area (AfCFTA) will promote the agglomeration of industries in the African region, the extension of the industrial chain and the growing economies of scale, and promote the participation of African countries in the global supply chain. From the perspective of how Africa should deal with the difficulties in the development process of the free trade area, this paper discusses how the development strategy and strategy of the free trade area on the African continent can help its stable development from the aspects of the construction of the free trade area on the African continent should learn from China's experience, promote the development of African port economy, help the development of agriculture and industrialization in Africa, increase and improve the investment in infrastructure, and connect the development of urbanization in Africa.

African Continent Free Trade Area Development Strategy Analysis

The establishment of the African Continental Free Trade Area (AfCFTA) will promote the agglomeration of industries in the African region, the extension of the industrial chain and the growing economies of scale, and promote the participation of African countries in the global supply chain. From the perspective of how Africa should deal with the difficulties in the development process of the free trade area, this paper discusses how the development strategy and strategy of the free trade area on the African continent can help its stable development from the aspects of the construction of the free trade area on the African continent should learn from China's experience, promote the development of African port economy, help the development of agriculture and industrialization in Africa, increase and improve the investment in infrastructure, and connect the development of urbanization in Africa.

Contribution to Securing BYOD Systems in Financial Authorities and Public Administrations in Free Trade Zones

The growth of digital tools, such as mobile phones, computers, and tablets, and the advent of new information and communication technologies have generated new phenomena in terms of communication capacity and data processing. This phenomenon is called BYOD, which stands for Bring Your Own Device, meaning employees use their own devices to access company resources within the company's IT network, whether internally or externally. On the one hand, it has brought many benefits and opportunities, but on the other hand, it carries many cybersecurity risks. Incidents of cybercrime, embezzlement, espionage, and cyberattacks. These are recorded every day in ZELECAF countries in general and in Congo Brazzaville in particular. In this article, a contribution and optimization to the security of BYOD systems in the financial authorities of the countries of the African Continental Free Trade Area are presented. Congo Brazzaville was chosen for the field study, and a few Central African countries were chosen for an online study. The results obtained are encouraging to the extent that the survey carried out revealed the use of digital tools in financial management by workers. Also, the lack of solid security in the existing computer networks within these structures was noted. The principles of raising public awareness of cybersecurity culture, protecting information, authenticating passwords by the IT manager or network administrator, hiding the wireless network, and enabling the firewall are part of the attempted solutions proposed. Compared to studies in the literature, the methodology is adapted, so that in the literature [14], [15], the majority of surveys were carried out in the field, with a very limited number.

Impacts of Regional Integration and Market Liberalization on Bilateral Trade Balances of Selected East African Countries: Potential Implications of the African Continental Free Trade Area

This study examined the effect of free trade on intra-African bilateral trade balances for Kenya, Rwanda, Uganda, and Tanzania to assess the potential implications of the African Continental Free Trade area. The four countries have experienced persistent trade deficits. Whether free trade within Africa can improve the national trade balances, and the drivers of bilateral trade balances are important questions for policy and strategic programmes for the countries to make the most gains from free trade area. The econometric model estimated for each country is an extension of the standard Keynesian model of trade balance to include determinants of bilateral trade flows from the gravity model. Quantitative analysis using panel regression was augmented with qualitative data from interviews with trade policy experts and trade officials from various African countries and focus group discussions with small-scale cross-border traders at the Busia and Namanga border posts in East Africa. Findings show that complete tariff elimination on intra–African trade may not impact the bilateral trade balances of Kenya, Rwanda, and Tanzania but could improve bilateral trade balances for Uganda by 6 percent. Within the free trade areas, Uganda’s bilateral trade balances were higher within the Common Market for Eastern and Southern Africa but lower within the East African Community, than outside these areas. Kenya’s trade balances were lower in the Common Market for Eastern and Southern Africa, than otherwise. On the contrary, no significant difference in trade balances is established for the membership of Kenya, Rwanda, and Tanzania in the East African Community; Rwanda in the Common Market for Eastern and Southern Africa; and Tanzania in the Southern African Development Community, when compared to trade balances with non-members. The importance of macroeconomic factors is demonstrated by the increase in bilateral trade balances with higher relative price levels of trade partners; the reduction with increase in relative production and expenditure capacities of trade partners; and improvements following a depreciation of home currency for Tanzania and Uganda, yet a worsening of trade balances in Kenya. A lack of harmony in documents required for cross-border movements within the free trade areas is reported as counterproductive. All African countries should therefore fully implement protocols and cooperate in the harmonization of trade procedures for the free movement of people and goods across borders. Country policies and trade programmes should pursue increased productivity in the leading intra-African export sectors and diversify exports via foreign direct investment in strategic sectors to substitute imports from outside Africa; reduce costs of production; increase the quality of products; and improve transport infrastructure.

Reducing Wait Times at Customs to Boost Trade: How Implementing the Trade Facilitation Agreement Can Expand Trade among AfCFTA Countries?

Abstract All WTO members participate in the Trade Facilitation Agreement (TFA), a rules-based bottom-up approach built on monitorable provisions (e.g., the publication of information, advance rulings, appeal or review of decisions, transparency and border agency cooperation) aimed at reducing time in customs. The paper draws on the OECD indicators of the state of implementation of provisions in the TFA summarised in a TFI (Trade Facilitation Index) to estimate the reduction in waiting time at customs for a large sample of 160 countries. Implementing the TFA could be a significant complement to the African Continental Free Trade Area (AfCFTA)'s objectives. The paper's estimates suggest that a realistic implementation of TFA measures could reduce time in customs for imports by 3.7 days and by 1.9 days for exports. Using extraneous estimates from customs-level transactions, this translates to a reduction tariff Ad-Valorem Equivalent (AVE) in the range 3.5%–7% for imports and 8% extra growth for exports. The large differences in interests across AfCFTA participants—landlocked-coastal, resource-rich and resource-poor, large-small—suggest large gains from reducing tariffs on intra-African trade. However, tariff reductions face the zero-sum hurdle of negotiations involving rent transfers across and within countries. By avoiding rent-transfer issues, this paper suggests that taking seriously the TFA provisions would be a powerful complement to the AfCFTA's tariff-reduction agenda.

African Continental Free Trade Agreement and Nigeria’s Developmental Aspirations: Exploring the Promise and Perils

African Continental Free Trade Agreement and Nigeria’s Developmental Aspirations: Exploring the Promise and Perils

Effects of green policies on sustainability of local economies in Africa

This article conducts a thorough analysis of the potential impacts of environmentally friendly policies on the long-term viability of renewable energy and waste management policies on the economics of local regions within the African Continental Free Trade Area. The research examines how these policies intersect with the development of intra-African enterprise and local employment rates. The study employs a qualitative methodology, utilising an exploratory research design to investigate African economic performance metrics. It also uses qualitative data to gain a deeper understanding of the subtle implications of policies. The research evaluates the economic consequences of these policies in African contexts by utilising a range of secondary sources, such as governmental reports, peer-reviewed studies, and policy evaluations. Initial results indicate that although green policies have resulted in substantial environmental advantages, their influence on intra-African economies is intricate and diverse. The report asserts that comprehending these dynamics is crucial for policymakers, practitioners, and researchers who have an interest in fostering sustainable development and inclusive economic growth in Africa. The study suggests the adoption of environmentally friendly policies that take into account the economic conditions inside Africa and aim to achieve a local economy that is both environmentally sustainable and inclusive.

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.

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.

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

AbstractDespite the advent of trade liberalisation, trade taxes still remain a key source of tax revenues in sub‐Saharan Africa. Further trade reforms in the form of the African Continental Free Trade Area could, however, hinder output growth in the region if these reforms lead to a decline in total tax revenues. Motivated by this conundrum, this paper investigates the impact of trade liberalisation on tax revenues across a panel of sub‐Saharan African countries. The results indicate that trade liberalisation is associated with an increase in total tax revenues. Also, the reduction of import and export duties significantly increases and decreases domestic and trade tax revenues, respectively. In addition, greater urbanisation is associated with an increase in total tax revenues, while inflation decreases tax revenues.