Africa’s free trade negotiations shift online as AU moves to address concerns

African Union headquarter in Ethiopia (PHOTO: FILE)

NAIROBI, KENYA: The remaining negotiations of Africa’s free trade area agreement has shifted online despite concerns regarding the use of virtual systems, especially infrastructure reliability, security, and confidentiality.

The African Union Commission however said it has received support to address the concerns and remains on target for countries to start trading under African Continental Free Trade Area (AfCFTA) by January next year.

“The Commission believes that for the current AfCFTA operationalisation timeline of January 1 to be met, and the decision of African Leaders on the fast-tracking of processes leading to the commencement of trading to be implemented, outstanding AfCFTA negotiations must move online,” said African Union in a satatement.

“African Union Commission has received with open hands many offers of support to help address these concerns that have come from the continental private sector, notably the African Virtual Trade-Diplomacy Platform (AVDP), itself a part of the broader AVRIVA (African Virtual Resilient-Integration for a Vibrant Africa) framework being developed as a public-private initiative between the African Union Commission and the over two dozen major multinational African corporations and pan-African institutions operating under the umbrella of the AfroChampions Initiative.”

The AVDP and the AVRIVA concept aim to rally support towards a campaign to keep the AfCFTA on track using technology by enabling the Member States to participate effectively and securely in the outstanding negotiations of the AfCFTA.

In a statement, AU says the concept will help to ensure that African countries can meet the new date for the start of trading under the AfCFTA of January 1 as set by African Heads of State and Government.

To ensure that Member States’ outstanding concerns about the security and reliability of the pro-integration digital platforms are addressed through the AVDP initiative, the Commission constituted a high-level committee of experts, including representatives from the Member States, relevant Departments, and Directorates of the AU Commission and security and Information technology specialists from the African private sector, to examine all aspects of the matter and present comprehensive guidance and advice to the Senior Trade Officials of Member States tasked with the AfCFTA program.

The concerns about the timely commencement of AfCFTA trading come at a time when countries all over Africa are getting ready to reopen their borders and economies, and a coordinated and harmonised effort is therefore urgently required to prevent confusion in the integration agenda.

The Commission is hopeful that digital technologies can play a very powerful role in driving positive cooperation among the Member States for a safe, smart, and harmonised reopening process.

The implementation of the African Continental Free Trade Area (AfCFTA) could catalyse the development and growth of Africa, and help the continent recover from the economic impact of the ongoing Covid-19 pandemic.

Economists believe AfCFTA is an opportunity to plot, organize, strategize, and mobilize African economies for growth that has suffered a major blow due to the pandemic.

According to the United Nations Economic Commission for Africa (UNECA), Africa's growth this year will drop from an initial estimate of 3.2 per cent to between -2.8 per cent and about zero per cent due to Covid-19, a dire situation that could throw an extra 20 million people into poverty in a continent where almost 300 million cannot afford one meal a day.

The start of trading under AfCFTA, slated to begin on July 1, was postponed due to the pandemic. While some believe the scheme has suffered a setback, there is a silver lining in the crisis for Africa.

In a virtual panel held earlier this month to mark the inaugural Africa Integration Day, Vera Songwe, executive secretary of UNECA, said Africa can use AfCFTA as a powerful tool in accelerating regional and economic integration and prepare for uncertain times.