Accelerating AfCFTA Implementation: NANGO Celebrates Africa Day 2023

The National Association of Non-Governmental Organisations (NANGO) joins the people of Africa and the rest of the world in celebrating Africa Day 2023, commemorating the founding of the Organisation of African Unity (OAU) on May 25, 1963. This significant day reminds us of the incredible diversity, rich heritage, and collective achievements of the African continent.

Africa Day serves as a powerful reminder of our shared values, culture, and aspirations as Africans. It is a moment to reflect on the progress we have made, acknowledge our challenges, and unite in our efforts to build a prosperous and inclusive Africa for all its people.

The theme for Africa Day 2023 is “Accelerating Implementation of the AfCFTA”. The African Continental Free Trade Area (AfCFTA) is a trade agreement between 54 African countries that aims to create a single market for goods and services across the continent. The agreement was signed in 2018 and came into force in 2021. The theme for Africa Day 2023 highlights the importance of accelerating the implementation of the AfCFTA to boost trade and economic growth on the continent.

The AfCFTA has the potential to be a major driver of economic growth in Africa. By creating a single market for goods and services, the AfCFTA will reduce trade barriers and make it easier for businesses to trade across the continent. This will lead to increased competition, which will drive down prices and improve the quality of products and services. The AfCFTA will also create new opportunities for businesses to export their products and services to other African countries.

In addition to boosting trade, the AfCFTA has the potential to create employment and reduce poverty in Africa. By increasing economic activity, the AfCFTA will create new jobs and boost incomes. This will help to reduce poverty and improve the living standards of millions of Africans.

We are cognisant of the extraordinary achievements and contributions of African nations and their people across various sectors. From advancements in technology and innovation to the promotion of sustainable development, African governments, Civil Society Organisations (CSOs), development partners, and the private sector continue to make remarkable strides. We commend the dedication and resilience of all involved stakeholders in shaping a better tomorrow.

However, we also acknowledge the challenges that Africa is facing which are inhibiting the successful implementation of the AfCFTA. These challenges include:

• Lack of infrastructure: Africa has a poor infrastructure, which makes it difficult to transport goods and services across the continent. This is a major challenge for the AfCFTA, as it will make it difficult for businesses to take advantage of the single market.
• Differing standards: African countries have different standards for goods and services. This can make it difficult for businesses to trade across the continent, as they may need to comply with different standards in different countries.
• Corruption: Corruption is a major problem in many African countries including our nation. This can make it difficult to enforce the AfCFTA, as businesses may be able to bribe officials to avoid complying with the agreement.
• Political instability: Some African countries are politically unstable. This can make it difficult to implement the AfCFTA, as businesses may be reluctant to invest in countries that are not politically stable. Currently, there is ongoing civil unrest in Sudan, and The Democratic Republic of Congo and the Great Lakes.
• Lack of awareness: Many businesses in Africa are not aware of the AfCFTA or how it will affect them. This lack of awareness can make it difficult for businesses to take advantage of the opportunities that the AfCFTA offers.
• Lack of capacity: Many African countries lack the capacity to fully and effectively implement the AfCFTA. This includes a lack of resources, skills, and expertise.
• Lack of political will: Some African governments are not entirely committed to implementing the AfCFTA. This lack of political will can make it difficult to overcome the challenges that are facing the AfCFTA.

Despite these challenges, the AfCFTA has the potential to be a major driver of economic growth in Africa. By addressing these challenges, African countries can make the AfCFTA a success and help to boost economic growth and sustainable development on the continent.

We offer the following recommendations for the successful implementation of the AfCFTA:

• Strengthen Infrastructure: Enhance physical infrastructure, such as transportation networks, roads, ports, and energy systems, to facilitate the easy movement of goods and services across African countries. Improving infrastructure will reduce trade barriers and promote efficient trade flows within the AfCFTA.
• Simplify Trade Procedures: Streamline customs procedures and documentation requirements to facilitate smooth trade transactions. Implementing standardised trade processes, reducing bureaucratic red tape, and enhancing trade facilitation measures will expedite the movement of goods, reduce costs, and improve the overall ease of doing business.
• Harmonise Standards and Regulations: Establish common technical standards and regulatory frameworks across all 54 participating countries to ensure consistency in product quality, safety, and compliance. Alignment of standards will promote consumer confidence, facilitate trade, and eliminate non-tariff barriers that hinder intra-African trade.
• Invest in Trade-related Infrastructure: Encourage investment in trade-related infrastructure, including trade facilitation centres, border posts, and customs automation systems. These investments will enhance border efficiency, reduce clearance times, and improve the overall trading environment, benefiting both small and large enterprises.
• Promote Capacity Building: Invest in human capital development and technical training programs to enhance trade-related skills and expertise. Capacity-building initiatives should focus on areas such as trade negotiation, customs administration, logistics management, and market research. This will empower individuals and organisations to actively participate and benefit from the AfCFTA.
• Support Small and Medium Enterprises (SMEs): Create targeted support mechanisms for SMEs, including access to finance, business development services, and market information. By assisting SMEs, which constitute a significant portion of African economies, the AfCFTA can promote inclusive growth, entrepreneurship, and job creation.
• Establish Dispute Resolution Mechanisms: Develop effective and efficient mechanisms for resolving trade disputes among member states. A robust and transparent dispute settlement framework will instill confidence, promote adherence to trade rules, and ensure a level playing field within the AfCFTA.
• Enhance Regional Integration: Encourage Regional Economic Communities (RECs) to align their trade policies and regulations with the AfCFTA, promoting coherence and synergy. Strengthening regional integration efforts will contribute to the success of the continental free trade area and facilitate the movement of goods and services within sub-regions.
• Facilitate Cross-border Movement of People: Explore measures to ease visa requirements and promote the movement of professionals, entrepreneurs, and skilled
• labour across African borders. This will foster collaboration, knowledge exchange, and cross-border investment, contributing to the growth and development of African economies.
• Promote Public-Private Partnerships: Foster collaboration between governments and the private sector to drive the implementation of the AfCFTA. Engaging the private sector in policy formulation, infrastructure development, and investment promotion will ensure a business-friendly environment and maximise the benefits of the free trade area.

Successful implementation of the AfCFTA requires concerted efforts, collaboration, and commitment from all African countries. By adopting these recommendations, African nations can unlock the full potential of the AfCFTA, boost intra-African trade, and contribute to the economic transformation and prosperity of the continent as a whole.

On this auspicious occasion, NANGO encourages everyone to celebrate Africa’s rich cultural heritage, embrace diversity, and foster a spirit of unity. Let us harness the power of collaboration and collective action to overcome our challenges and create a future where every African can thrive.

The theme for Africa Day 2023 is a call to action for all Africans to support the implementation of the AfCFTA. By working together, we can create a more prosperous and equitable Africa for all. Happy Africa Day 2023!