The AfCFTA’s momentum must be preserved to prevent nations using Covid-19 as a reason to renege.
The African Continental Free Trade Agreement , launched in 2018, was supposed to be an exciting example of multilateral cooperation against a growing tide of nationalism and protectionist policies. Africa was meant to buck the trend of retreating globalism and integration by creating the largest free trade zone in the world.to at least 2021 as countries battle the effects of Covid-19.
The Covid-19 fight requires all hands on deck. Much of the financial and human capital resources dedicated to finalising AfCFTA will need to be diverted to budgetary adjustments and social support programmes. Policymakers have therefore been pragmatic. However, this preserves a cost burden many businesses simply can’t carry in the current environment, threatening their sustainability. African business leaders are stillThe postponement, while for pragmatic reasons, may have a temporary positive fiscal impact. By delaying, policymakers can retain trade revenue in the short term. But this is at the expense of immediate business stimulus that would provide higher and more sustainable revenue over the longer term.
Debt burdens are growing, tax revenues are falling, and fiscal deficits are exploding. Governments must take a long view of the benefits of continental free trade, for individuals and businesses and for the fiscus. Aborting the continental trade pact altogether becomes a risk with postponement. According to the Trade Law Centre, the average percentage scores currently for AU member states regarding their level of commitment towards AfCFTA is 44.48% and implementation readiness is 49.15%.Africa as a whole is therefore less than 50% committed and less than 50% prepared for AfCFTA implementation.
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