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Critically examine the legal and institutional framework, functional mandate and
organizational challenges of the African Continental Free Trade Area (AfCFTA). What are
INTRODUCTION.
The pursuit of continuous and all-encompassing socio economic growth has seen nations
participate in several forms of integration activities, ranging from economic, political, and, by
extension, social. Nonetheless, Wonnacott (1996) argued that such initiatives (in the form of
free trade agreements and market liberalization) have become synonymous within the
developed world where there are mechanisms, such as the political will and the resources to
ensure those initiatives are not only implemented but are also protected by constitutionalism
and the principles of good governance. According to Zeiler (1998), the end of the Cold War
provided countries with opportunities to spur development and one key initiative that was
seen as important in realizing this was free trade, in which barriers and regulations hindering
trade within regions should be removed and replaced by the free flow of goods and resources,
which was seen as critical for developing regions and the need to ensure inclusive growth.
exports to meet its energy and food needs. Africa represented 2.8 percent of global trade
volume in 2019, with intraregional trade accounting for 14.4 percent of overall continental
trade volume in 2019. Countries in Africa have not yet established successful strategies for
promoting long-term development and raising living standards in their own countries. The
lack of intra-regional trade has prevented African countries from fully exploiting the
synergies and complementarities of their economies and reaping the benefits that greater
regionalization will save them from failure and enable their economic integration and
development. The African Continental Free Trade Area (AfCFTA) was recently established
In a free trade area (FTA), two or more countries agree to remove tariffs and other trade
restrictions between themselves, but each country still has the authority to impose its own
restrictions on trade with other countries. A group of nations in a certain region that have
signed a free trade agreement and have little or no price constraints, such as tariffs or quotas,
is another definition of an FTA. This enables the member nations to concentrate on their
established and largest FTA in the world is the Northern American Free Trade Agreement
NAFTA between North American countries which include the United States of America,
Mexico, and Canada; this agreement encourages and boosts trade between North American
Countries. In Africa, the most all-encompassing Free Trade Area, which has been a major
subject of contemporary discourse, was created in 2019, i.e., The Africa Continental Free
To understand the need and desire to consolidate trade integration in Africa, one needs to
understand the processes and policies that gave rise to this need.
The Lagos Plan of Action
Africa represents a region that faces economic problems of the utmost severity. Informally
known as the Lagos plan, the Lagos Plan of Action (LPA) for the Economic Development of
Africa (1980–2000) was a plan backed by the Organization of African Unity born out of the
need to establish an African social and economic order primarily based on utilizing to the full
the region’s resources in building a self-reliant economy (United Nations, Economic and
Social Council, United Nations Economic Commission for Africa. 1991-03). A parallel
objective was the establishment of an African Economic Community by the beginning of the
twenty-first century. The LPA aimed to minimize Africa’s links with Western countries by
maximizing Africa’s own resources by increasing trade and consolidating relations between
African states. In adopting the LPA and the FAL (Final Act of Lagos), it was recognized that
respective development plans (Economic and Social Council, 1991). However, regional
bodies like the Economic Commission for Africa (ECA), the Organization of African Unity
(OAU), and others would have the task of giving technical assistance to member states.
Ikome (2004) stated that if the objectives of the LPA had gotten support from all states, it
would likely have resulted in increased continental trade and growth in the inflow of foreign
direct investment, and, socioeconomically, would have lifted millions out of poverty.
However, even though the plan was noble in its development, many challenges were bound to
hinder its effective implementation and operation. For example, the main problems
adequate capital, and excessive foreign dependence. Moreover, this paper argues that the plan
did not take into consideration the different levels of economic development in Africa, and
how this was going to hamper the quest to ensure collective development.
In addition, it has been argued that the social climate in Africa has not changed; in fact, one
may argue that it has worsened, as scattered conflicts (ethno-religious), political and
inequality, and unemployment are issues that have made it difficult for the LPA to fulfil its
promises.
The Abuja Treaty
The LPA was one of the instruments that were established to reinvigorate Africa’s
development. The Abuja Treaty, which gave rise to the establishment of the African
Economic Community was adopted on June 03, 1991, and came into force on May 12, 1994
(Parliamentary Monitoring Group, 2020). The treaty has been signed by all member states of
the OAU, except Eritrea. South Africa signed the treaty on 10 October 1997. Just like the
PLA, the Abuja Treaty put great emphasis on the need to foster the social, economic, and
cultural development of the African continent through the integration of the economies of the
various countries. The Abuja Treaty argued that, for continental development, RECs had to
be at the center of the process. The treaty argued for the liberalization of regional and intra-
regional trade, the harmonization of activities undertaken by RECs, the establishment of free
trade areas, and a customs union at REC level, finally aiming at achieving both a monetary
Important principles which gave rise to the Abuja Treaty included the declarations and
resolutions adopted by the OAU Assembly in Algiers in September 1968, and in Addis
Ababa in August 1970 and May 1973 which argued that the economic integration of the
continent was a pre-requite for the realization of the objectives of the Organization of African
Unity, in 1997. Other considerations in the creation of the treaty were the decision taken in
Economic Community, and the Lagos Plan of Action which reaffirmed Africa’s continued
efforts to integrate (United Nations Economic and Social Council, United Nations Economic
However, the question arose as to whether the goal of the Abuja Treaty could be realized,
considering existing legal and institutional frameworks as enshrined in both the Abuja Treaty
and the Constitutive Act of the African Union. Article 88 (1) of the Abuja Treaty expressly
states that the Community shall be established mainly through the coordination,
harmonization, and progressive integration of the activities of RECs. The Treaty has at times
been met with feelings of skepticism. For example, the African Union (2014) argued that
while paragraph 3 of Article 88 of the Treaty stipulates those processes such as coordination,
harmonization, and the evaluation of existing and future RECs shall be entrusted to the
community, while welcomed, are essentially aspirational. There are several reasons for this.
Firstly, the legal framework for economic integration can be examined at both regional and
continental levels. Regionally, African states belong to and are coordinated by RECs.
Eight of these RECs are recognised by the African Union as both legal and institutional
frameworks for attaining regional integration objectives. However, these legal and
institutional frameworks differ greatly in terms of their effectiveness between one REC and
another. As a result, there is a lack of synergy between the regional and continental legal and
the protocols adopted by RECs have been acknowledged. In some cases, protocols lack
complementarity across RECs, take too long to negotiate, and are often not signed, ratified,
and implemented by all member States (African Union, 2014). The high number of RECs
coupled with the issues of overlapping memberships gives rise to the fragmentation of
economic integration. Another inherent weakness is the inability of the Abuja Treaty to
prevent member states from belonging to more than one regional economic community. On
this issue, the African Union (2014) concludes that in the African integration context, the
privilege of sovereignty, and efforts to guard it by member states, seem to have led to the
aimed at addressing pressing issues hindering the development of the African continent.
NEPAD was ratified by the AU in 2002. The key principles of NEPAD are to empower
women, reduce the marginalization of Africa, reduce poverty, and put Africa on a sustainable
path toward collective development. The NEPAD has been central in the African Union’s
strategy to allow Africa to take full control of its development agenda, to work more closely
together, and cooperate more effectively with international partners. Key themes of the
NEPAD include Agriculture and Food Security, Climate Change and Natural Resource
and ICT. However, while NEPAD is aimed at addressing pressing developmental issues in
Africa, it too, just like the PLA and the Abuja Treaty has faced considerable challenges
which to some extents have hindered its effectiveness. For example, NEPAD was challenged
barriers, the lack of investment in human capital, and the eradication of colonial mentality.
However, there are also collective gains that have been made by the NEPAD, as argued by
the UNCTAD (2012). One of the areas in which the NEPAD has made some progress is
(CAADP), NEPAD is slowly laying the foundation for higher agricultural productivity and
output in Africa. NEPAD also put Africa on the global agenda and has galvanized
international support for the region. As a result of the adoption of NEPAD, the Group of
Eight (G8) launched the Africa Action Plan in June 2002 and made commitments to support
the implementation of NEPAD. NEPAD has also made some progress in economic and
political governance. According to the 2011 African Economic Outlook, the economic
environment in several countries in the region has improved, particularly in areas such as tax
reform, access to credit, and enforcement of contracts. However, despite these achievements,
the NEPAD failed to achieve its goal, mainly because of capacity constraints, lack of
financial resources, coordination problems between the NEPAD secretariat and the RECs,
weak infrastructure, and the absence of quantifiable benchmarks for monitoring and
evaluation.
In line with the AU’s Agenda 2063 of economic integration on the African continent, the
African Continental Free Trade Area was conceptualised and subsequently endorsed as an
action plan to boost Intra-African Trade at the 18th Ordinary Session of the Assembly of
Heads of State and Government in 2012. Subsequently, the Agreement establishing the
agreement came into force on 30 May 2019. The AfCFTA is the first agreement of its kind to
This agreement creates a common market for goods, services and investment and allows for
free movement of persons in the continent. The AfCFTA is one of several AU frameworks
supporting the Abuja Treaty’s end goal, the establishment of an African Economic
Community (AEC). The vision for the AEC coincides with the continent’s uniformed
approach to fiscal, social, and sectorial policies, and is part of the AU’s broader development
frameworks designed to boost intra-African trade and establish continental customs union.
The AfCFTA follows the establishment of the Tripartite Free Trade Area (TFTA), a free
trade area between COMESA, SADC and the EAC. It aims to bridge regional divisions by
building on the TFTA’s regional industrial development policies and strengthening trade
among the various RECs, with the aim of incorporating all African economic blocs under
standardized rules and regulations. The AfCFTA considers RECs as building blocks of the
ultimate African Integration Agenda. While individual states that are part of the AfCFTA will
be able to continue implementing existing free-trade agreements, RECs that have advanced
significantly in their integration agenda will continue to apply the rules they had agreed upon.
traditional World Trade Organization (WTO) framework. Countries that trade with each other
under WTO rules are to start trading instead under AfCFTA rules, now that it is in effect.
The agreement further entails deep and comprehensive trade agreements, including
investments, intellectual property rights, and competition laws (African Union, 2018). The
AfCFTA portends dramatic opportunities for the continent, it will reduce tariffs among
member countries and cover policy areas such as trade facilitation and services, as well as
regulatory measures such as sanitary standards and technical barriers to trade. The full
implementation of AfCFTA shall reshape markets and economies across the region and boost
The first day of trade in commodities between various African nations under the aegis of
AfCFTA was January 1, 2021. Pending the delay by other state parties on the adoption of
fundamental annexes to the trade agreement protocol, the latter is presently limited to states
that have ratified the AfCFTA. Amid high expectations envisaged on the AfCFTA, one of
many questions of interest is the extent to which it will enhance trade within Africa. The
World Bank (2020) communicated that AfCFTA “connects 1.3 billion people across 55
countries, with a combined Gross Domestic Product (GDP) valued at US$3.4 trillion”.
Historical Background.
In 1963, the Organization of African Unity was founded by the independent states of Africa.
The OAU aimed to promote cooperation between African states. The 1980 Lagos Plan of
Action was adopted by the organization. The plan suggested Africa should minimize their
reliance upon the West by promoting intra-African trade. This began as the creation of a
number of regional cooperation organizations in the different regions of Africa, such as the
Southern African Development Coordination Conference. Eventually this led to the Abuja
Treaty in 1991, which created the African Economic Community, an organization that
promoted the development of free trade areas, customs unions, an African Central Bank, and
In 2002, the OAU was succeeded by the African Union (AU), which had as one of its goals to
accelerate the "economic integration of the continent". A second goal was to "coordinate and
harmonize the policies between the existing and future Regional Economic Communities for
At the 2012 African Union summit in Addis Ababa, leaders agreed to create a new
Continental Free Trade Area by 2017. At the 2015 AU summit in Johannesburg, the summit
agreed to commence negotiations. This began a series of ten negotiating sessions which took
The first negotiation forum was held in February 2016 and held eight meetings until the
Summit in March 2018 in Kigali. From February 2017 on the technical working groups held
four meetings, where technical issues were discussed and implemented in the draft. On
March 8–9, 2018 the African Union Ministers of Trade approved the draft.
In March 2018, at the 10th Extraordinary Session of the African Union on AfCFTA, three
separate agreements were signed: the African Continental Free Trade Agreement, the Kigali
Declaration; and the Protocol on Free Movement of Persons. The Protocol on Free Movement
of Persons seeks to establish a visa-free zone within the AfCFTA countries, and support the
creation of the African Union Passport. At the summit in Kigali on 21 March 2018, 44
countries signed the AfCFTA, 47 signed the Kigali Declaration, and 30 signed the Protocol
on Free Movement of People. While a success, there were two notable holdouts: Nigeria and
One complicating factor in the negotiations was that Africa had already been divided into
eight separate free trade areas and/or customs unions, each with different regulations. These
regional bodies will continue to exist; the African Continental Free Trade Agreement initially
seeks to reduce trade barriers between the different pillars of the African Economic
Community, and eventually use these regional organizations as building blocks for the
Membership.
Among the 55 AU member states, 44 signed the African Continental Free Trade Agreement
(consolidated text), 47 signed the Kigali Declaration and 30 signed the Protocol on Free
Movement of People at the end of the 2018 Kigali Summit. Benin, Botswana, Eritrea,
Guinea-Bissau, Nigeria, and Zambia were among the 11 countries that did not initially sign
the agreement. After the 2018 Kigali summit, more signatures were added to the AfCFTA. At
the 31st African Union Summit in Nouakchott on 1 July 2018, South Africa (the second
largest economy of Africa), Sierra Leone, Namibia, Lesotho and Burundi joined the
agreement. In February 2019, Guinea-Bissau, Zambia and Botswana also joined. Kenya and
Ghana were the first nations to ratify the agreement, depositing their ratification on 10 May
2018.
Of the signatories, 22 needed to deposit the instrument of ratification of the agreement for it
to come into effect, and this occurred on 29 April 2019 when both Sierra Leone and the
Sahrawi Arab Democratic Republic deposited the agreement. As a result, the agreement came
into force 30 days later on 30 May 2019. At this point, only Nigeria (the continent's largest
Former President of Nigeria, Muhammadu Buhari was particularly reluctant to join the
AfCFTA, fearing it would hurt Nigerian entrepreneurship and local industries, and his
decision not to was praised by some local groups including the Manufacturers Association of
Nigeria and the Nigeria Labour Congress. The Nigerian government intended to consult
further with local businesses in order to ensure private sector buy-in to the agreement,
because a key concern was whether the agreement adequately prevented anti-competitive
practices such as dumping. In July 2019, just months after being re-elected to a new term,
Buhari agreed to adhere the Africa free trade at the 12th extraordinary session of the
At the same meeting, Benin also committed to signing the agreement, leaving Eritrea as the
only of the 55 African Union Member States not to sign up to the deal. Formally, Eritrea was
not part of the initial agreement due to an ongoing state of war, but the 2018 peace agreement
between Ethiopia and Eritrea ended the conflict and ended the barrier to Eritrean participation
As of May 2022, there are 54 signatories, of which 43 (80%) have deposited their instruments
of ratification. Additionally, one country (Somalia) completed its domestic ratification, but
had not yet deposited their ratification with the depository by May 2020. Eritrea is the only
Africans had been engaged with inter-Africa and intra-Africa trade before the establishment
of AfCFTA in 2019. Prior to the explorations of Africa by European merchants in the 15th
century African traders and rulers had established trading relationships with the Indian ocean
region, western Asia, and the Mediterranean world. Internally, there were local exchanges
between African communities themselves. It has been established that in pre-colonial Africa,
local manufacturers already made items of comparable quality to goods from pre-industrial
Europe. Taking a cue from the existing trade model in Africa, European explorers
hoodwinked and hijacked the trade to expand on the gains they made from the industrial
revolution. In the trail of this, explain that African economies and trade became structured
with the aim of serving as suppliers of cheap labor and non-value-added raw materials to the
colonial economies and as markets for their manufactured and value-added products.
As such, trade benefited the metropolitan nations while marginalizing and impoverishing
African nations. Moreover, African economies were fully integrated into the colonial ones,
resulting in a one-sided dependency that has largely remained so to date. The crux of the
matter,in anticipation of AfCFTA, is to at least alter the pattern of trade flow to boost intra-
African trade; defend the African domestic markets from further harmful liberalization;
defend our producers – especially our farmers – from demise resulting from “dumping” of
subsidized imports; seeking market access without reciprocal market opening obligation
(considering the coercive and unfair trade balance over the years); and promoting regional
integration. Current African trade patterns reinforce the continent’s reliance on the economies
of developed markets, primarily the ex-colonial powers. Africa’s trade particularly with the
economies of previous colonial masters (European economies) has largely remained in the
form of servicing these economies by way of providing raw materials for the industries of
these colonial economies and serving as markets for their industrial goods. This pattern of
trade has made African exports have little or no value added as these exports come back to
Africa as imports with high value added and with higher prices. Consequently, Africa’s share
of total world trade has remained very low. Despite the efforts made by African countries to
improve the region’s share of global trade, statistics from Africa Trade Report shows that
Africa’s share of global trade has remained at less than 3 per cent for the last few decades.
A significant milestone for economic integration in Africa was reached on March 21, 2018,
when the AfCFTA was signed. As of July 2019, 54 of the 55 AU Member States have ratified
the deal. After 22 State Parties deposited their ratification instruments, the agreement entered
into force on May 30, 2019, enabling the AfCFTA to begin its operational phase.
Currently in effect are the protocols on trade in goods and services, dispute resolution
processes, and their annex protocols on customs cooperation, trade facilitation, sanitary and
phytosanitary measures, and rules of origin. The negotiations, carried out by the Heads of
State of the AU Member States, have been separated into two phases: Phase I deals with the
aforementioned protocols, while Phase II deals with the protocols on investment, competition
policy, and intellectual property. It should be emphasized that various concerns from Phase I,
such as schedules of tariff concessions, schedules of services obligations, and rules of origin,
still need to be worked out. The AfCFTA promises to eliminate tariffs (up to 97% of tariff
lines) and NTBs and liberalise trade in services – particularly in the financial, transport,
tourism, business and communication sectors, among others. However, to date, it remains
unclear which products will be subject to tariff cuts, which services will be liberalised and
what system of rules of origin that will be applied. The AU has indicated that trading under
While acknowledging the pursuit of the Pan-African vision for economic independence, the
launch of the AfCFTA must also be seen in the context of growing uncertainty over the future
of the direction of the global multilateral trading system, and ever-changing trade landscape.
African states are not a party of any of the emerging mega-regional trade agreements, such as
the Trans-Atlantic and Investment Partnership, the Trans-Pacific Partnership and the
for Africa (UNECA) research estimates that due to preference erosion and greater
competition faced by African countries in the mega-regional markets, total exports from
Africa could be reduced by USD 2.7 Billion. These negative impacts could be offset with the
As previously noted, the general objectives of the AfCFTA are to create a continental market
for trade in goods and services, with free movement of persons and investments, thus paving
the way for accelerating the establishment of a continental customs union. Article 4 of the
AfCFTA highlights the specific objectives necessary to realise these general objectives.
Particular importance to this analysis are the objectives requiring State parties to “establish a
mechanism for the settlement of disputes concerning their rights and obligations” and to
“establish and maintain an institutional framework for the implementation and administration
of the AfCFTA”
The AfCFTA is a Free Trade Agreement (FTA), established in terms of Article XXIV:8(b) of
the WTO General Agreement on Tariffs and Trade (GATT, 1994), aimed at jumpstarting
intra-African Trade and boosting investment in the continent. Article 3 of the AfCFTA
provides for the general objectives of the agreement; with the primary objective being “to
create a single market for goods, services, facilitated by movement of persons in order to
deepen the economic integration of the African continent and in accordance with the Pan
African Vision of “An integrated, prosperous and peaceful Africa enshrined in Agenda
2063”. The AfCFTA will also serve to “lay the foundation for the establishment of a
Continental Customs Union at a “later stage” in terms of the GATT Article XXIV:8(a).
Article 4 of the AfCFTA stipulates that State parties have committed “cooperate on all trade
related areas, while Article 5 illustrates the governing principles of the agreement. Of
particular importance are that the AfCFTA “will be driven by Member States of the AU” and
that RECs shall be the “building blocs” for the establishment of the FTA. It is clear that the
signatory states envision a very high and intricate level of economic integration, that will be
achieved largely through the progressive removal of tariff and Non-Tariff Barriers (NTB) to
trade, and characterised by reciprocity in participation and equal opportunity for benefits
gained from effective implementation. The UNECA estimates that under the AfCFTA, intra-
African trade could increase by 52.3% by 2022, and once the final 10% of tariffs are
stand to advance the lives of regular African people. In line with the United Nations (UN)
programmes, poverty alleviation considered a top priority in African States. Arguably, the
most vulnerable sectors of the population across the continent- the youth and women- stand
to benefit the most from improved trade facilitation, access to markets and free movement of
labour. A present, it suggested that Africa’s most urgent challenge is the fact that its massive
youth population is devoid of economic and social prospects. With 60% of the continent’s
population being under 25 years old, youth unemployment is considered one of the most
pressing challenges that governments need to address. Under the AfCFTA, expanded markets
and unobstructed factor movements of labour, goods, services, capital and persons should
and facilitate job creation. A single African market will provide a conducive environment for
The AfCFTA, through supporting improved trade facilitation efforts on the continent will
also make strides in formalising informal the cross-border trade practices which make
agricultural self-employment. Many of the major challenges faced by these traders are caused
This causes conflicts between nation and regional trading policies, thus stifling the smooth
movement of goods and persons across border. Traders are subject to heavy duties and
inconsistent licensing and clearance procedures. Likewise, because of the lack of coherent
trade facilitation regulation, women also face other non-economic risks and challenges at
borders- these include theft of their goods, corrupt propositions from customs officials and
sexual abuse from border authorities. The protection of women and other vulnerable is of
groups in Africa is of paramount importance; foremost, because they are persons who deserve
safe and fair opportunities to partake in economic activities to improve their lives and those
of their households. Also because their protection through improved trade facilitation and
regulation stands to increase the significance to the economic growth and development of
African States.
The general objectives of the AfCFTA (as provided in part II, Article 3 and 4 of the
(a) create a single market for goods, services, facilitated by movement of persons in order to
deepen the economic integration of the African continent and in accordance with the Pan
African Vision of “An integrated, prosperous and peaceful Africa” enshrined in Agenda
2063;
(b) create a liberalised market for goods and services through successive rounds of
negotiations;
(c) contribute to the movement of capital and natural persons and facilitate investments
building on the initiatives and developments in the State Parties and RECs;
(d) lay the foundation for the establishment of a Continental Customs Union at a later stage;
(e) promote and attain sustainable and inclusive socio-economic development, gender
(f) enhance the competitiveness of the economies of State Parties within the continent and the
global market;
(g) promote industrial development through diversification and regional value chain
(h) resolve the challenges of multiple and overlapping memberships and expedite the regional
The African Continental Free Trade Agreement's (AfCFTA) institutional frameworks are
essential to the agreement's success and efficient implementation. These frameworks offer the
procedures, institutions, and mechanisms required to support the AfCFTA's operation and
respond to the many demands and difficulties faced by member nations. The following
The AU is the overarching institution that provides the political and administrative
framework for the AfCFTA. It serves as the continental body responsible for coordinating
and supervising the implementation of the agreement. The AU provides strategic direction,
policy guidance, and ensures harmonization of the AfCFTA with other AU initiatives.
2. Assembly of Heads of State and Government:
The Assembly is the highest decision-making body of the AU. It consists of all the heads of
state and government of AU member states. The Assembly provides political oversight, sets
the overall goals and objectives of the AfCFTA, and makes key decisions regarding its
implementation.
The AUC is the secretariat of the AU and plays a central role in implementing the AfCFTA.
providing technical and administrative support to the AfCFTA process. The AUC works
closely with other AU organs, member states, and stakeholders to ensure the effective
4. AfCFTA Secretariat:
implementation and management of the AfCFTA. It is located in Accra, Ghana, and serves as
the operational arm of the agreement. The Secretariat is responsible for facilitating trade
The AfCFTA Secretariat will be responsible for coordinating the implementation of the
agreement and shall be an autonomous body within the AU system. Though it will have
independent legal personality, it shall work closely with the AU Commission and receive its
budget from the AU. The Secretariat is responsible for convening meetings, monitoring and
evaluating the implementation process of the AfCFTA and other duties assigned to it by the
AU Assembly of Heads of State, the Council of Ministers, and the Committee of Senior
Trade Officials. The Secretariat houses experts, notably in legal affairs, economic
policymaking, research, and communications, to assist the Member States, among other
things, in ensuring easy progress of negotiations and that the rules set out in the Agreement
The whole existence of the AfCFTA is to create a single continental market for the free
movement of goods, services and investments. The AfCFTA Agreement covers goods and
services, intellectual property rights, investments, digital trade and Women and Youth in
Tade among other areas. The Secretariat, therefore, works with State Parties to negotiate
trade rules and frameworks for eliminating trade barriers while putting in place a Dispute
Settlement Mechanism, thereby levelling the ground for increased intra-Africa trade.
Another function of the Secretariat is to ensure that trade policies of the various State Parties
are in conformity with the provisions in the AfCFTA Agreement. Where there are identifiable
gaps, the Secretariat then facilitates the process of bridging the gaps. It also undertakes
periodic reviews of State Parties reports and monitors the overall implementation of the
each AU member state. It is responsible for providing overall policy guidance, making
decisions on trade-related matters, and ensuring the effective implementation of the AfCFTA.
The Council meets regularly to discuss trade issues, review progress, and address challenges.
The Council of Ministers shall report to the Assembly through the Executive Council.
(Article 11, Agreement Establishing the Africa Continental Free Trade Area)
The Council of Ministers shall within its mandate:
(c) take measures necessary for the promotion of the objectives of this Agreement and other
(d) work in collaboration with the relevant organs and institutions of the African Union;
(e) promote the harmonisation of appropriate policies, strategies and measures for the
(f) establish and delegate responsibilities to ad hoc or standing committees, working groups
or expert groups;
(g) prepare its rules of procedure and those of its subsidiary bodies created for the
implementation of the AfCFTA and submit them to the Executive Council for approval;
(h) supervise the work of all committees and working groups it may establish pursuant to this
Agreement;
(i) consider reports and activities of the Secretariat and take appropriate actions;
(j) make regulations, issue directives and make recommendations in accordance with the
(k) consider and propose for adoption by the Assembly, the staff and financial regulations of
the Secretariat;
(l) consider the organisational structure of the Secretariat and submit for adoption by the
(m) approve the work programs of the AfCFTA and its institutions;
(n) consider the budgets of the AfCFTA and its institutions and submit them to the Assembly
(o) make recommendations to the Assembly for the adoption of authoritative interpretation of
(p) perform any other function consistent with this Agreement or as may be requested by the
Assembly.
These working groups are established to address specific technical issues related to the
implementation of the AfCFTA. They cover areas such as trade in goods, trade in services,
investment, intellectual property rights, rules of origin, customs cooperation, and dispute
settlement. The working groups provide technical expertise, conduct research, and make
implementation of the AfCFTA at the national level. These mechanisms may include inter-
the potential to change Africa's economic landscape. The AfCFTA presents enormous
potential for fostering economic growth, regional integration, and sustainable development by
uniting the continent's markets. In-depth analysis of the AfCFTA's possible outcomes and
opportunities for African countries is provided in this report. The AfCFTA is a transformative
force for the future of Africa, promoting economic diversification, job creation, intra-African
investment, and greater continental integration. For the African continent, the African
Continental Free Trade Agreement (AfCFTA) offers a wealth of options and possible
1. According to a document compiled by the African Trade Policy Centre (ATPC) of the
Economic Commission for Africa (ECA) in association with the African Union Commission,
the African Continental Free Trade Area (AfCFTA) will cover a market of 1.2 billion people
and a gross domestic product (GDP) of $2.5 trillion, across all 55 member States of the
African Union.
2. Data has shown that over 75 per cent of Africa’s exports outside the continent were
extractives from 2012 to 2014, while less than 40 per cent of intra-African trade were
extractives in the same period. The volatility of the extractive market makes the development
disturbing. Africa’s industrial exports are therefore expected to benefit most from AfCFTA,
with projections that it will help diversify Africa’s trade and encourage a move away from
extractive commodities, such as oil and minerals, which have traditionally accounted for most
of Africa’s exports. This will, in turn, result in a more balanced and sustainable export base
3. In terms of numbers of participating countries, AfCFTA will be the world’s largest free
trade area since the formation of the World Trade Organization. Of course, it is also a highly
dynamic market. The population of Africa is projected to reach 2.5 billion by 2050, at which
point it will comprise 26 per cent of what is projected to be the world’s working age
population, with an economy that is estimated to grow twice as rapidly as that of the
developed world.
4. With about 80 per cent of the region’s businesses tied to Small and Medium Scale
Enterprises, they are key to growth across Africa. Studies have shown that these businesses
usually struggle to penetrate more advanced overseas markets, but are well positioned to tap
into regional export destinations and can use regional markets as stepping stones for
5. Africa’s growing youth population and absence of opportunities are key concerns troubling
development experts on the continent. AfCFTA is projected to produce jobs for this bulging
youth population. This is possible because extractive exports, on which Africa’s trade is
currently based, are less labour-intensive than manufactured products and agricultural goods
that will benefit most from AfCFTA. With the promotion of more labour-intensive trade,
6. The supply chain across the continent is one area AfCFTA is expected to impact, by
making it easier for SMEs to connect to larger regional companies, who then export within
and outside the continent. This will help grow the SMEs and create a bigger market for larger
companies.
7. For women across the continent, estimated to account for around 70 per cent of informal
crossborder trade in Africa, the agreement will facilitate movement and trade. With reduced
tariffs, AfCFTA will make it more affordable for informal traders to operate through formal
channels, which offer more protection from harassment, robbery and confiscation of goods as
seen today. It is also projceted to provide simplified clearing procedure alongside reduced
when they export within Africa than when they export outside it. The average is put at 6.1 per
making it easier for African businesses to trade within the continent and tap from the huge
9. While signing the agreement on Sunday, President Muhammadu Buhari spoke of “fair
trade” in relation to free trade. ‘‘Nigeria wishes to emphasise that free trade must also be fair
trade,” he said. This resonates well with countries nursing the fear of “unfair” trading
practices that could hurt their economies. While African countries that are relatively more
industrialized are well placed to take advantage of the opportunities for manufactured goods,
less-industrialized countries can benefit from linking into regional value chains. These value
chains involve larger industries sourcing their supplies from smaller industries across borders,
10. Development is a big challenge across the African continent. AfCFTA, a flagship project
of Agenda 2063 of the African Union, is expected to help accelerate Africa’s own
development vision. It was approved by the African Union Summit as an urgent initiative
development and enhance confidence and the commitment of Africans as the owners and
drivers of Agenda 2063. The effect, as projected, will contribute to the achievement of the
United Nations 2030 Agenda, especially the Sustainable Development Goals, SDGs.
institutional and structural factors will determine the progress and the outcomes of the
integration project. These include the regional economic communities, implementation and
adjustment costs, structural transformation and industrial policies, as well as the role of the
The eight regional economic communities are the building blocks of the AfCFTA agreement,
as every African country participates in one or more of these RECs. However, the diversity of
integration levels and overlapping RECs add complexity to the liberalization process. The
AfCFTA agreement is a free trade agreement for every country in addition to the RECs.
Initially, the AfCFTA liberalizes trade in goods between countries and RECs with common
external tariffs that do not yet apply preferential tariff rates amongst each other, such as EAC
and ECOWAS (Schmieg 2020). All countries are affected, once the liberalization efforts of
the AfCFTA go beyond the level of liberalization within the RECs and when the AfCFTA
covers new policy areas not yet included in the RECs. In case of inconsistencies, the
AfCFTA regulations prevail, thereby pushing all countries towards a common regulatory
framework, except for REC with an even higher level of liberalization. This implies that there
will be different speeds of liberalization processes in the different African regions in the
coming years, which depend in turn on the current level of liberalization. In particular,
Western and Central African countries will experience stronger pressure to implement
regulatory adjustments. This can also influence further negotiations among the AU member
states, in case that these states become reluctant to support further opening.
Further implementation challenges emerge with the actual removal of tariffs in the single
countries. Even though impact studies assume few burdens from tariff reductions on public
revenues in most countries, many low-income countries are typically slow to phase-out tariffs
due to concerns over revenue loss and import competition. For instance, Malawi has only
liberalized 70 % of its trade with SADC partners, despite the commitment to remove them
fully. Besides border measures, also national regulations have to be adjusted, for instance,
SPS and TBT regulations, which should be developed and harmonized based on international
standards (AfCFTA Annex 7) (African Union 2019). The agreement defines commitments to
monitor and report the implementation of the different protocols on trade in goods and
establishes various committees to manage the process, but further mechanisms to foster and
administrative and financial capacities might face burdens from the implementation of more
enhanced regulatory frameworks, but also with respect to the use of the special and
That being said, some key fundamental challenges identified plaguing the implementation of
One major obstacle to the successful take-off of the AfCFTA is a series of neocolonial
economic interventions and the associated weak indigenous industrial base in most African
countries. These problems can be attributed not just to centuries of resource plunder by
Western capital and states (principally through both the trans-Atlantic slave trade and
colonialism), but also to the nature of the post-colonial (neo-colonial) political economy. For
instance, studies demonstrate how former colonial powers nurtured a rent-seeking class of
comprador African leaders who, since independence, have helped Western capital continue
the plunder of African resources. Sometimes, this class of comprador leaders was created
through external threats of violence, national economic ruination, or a sponsored coup d'état.
The French government is known to have used these forms of threat and suppression to create
and sustain a class of compliant leaders in its former African colonies. African comprador
leaders have primarily become the conduit through which foreign capital and governments
control the economic and trade policies of most African states and through which these
foreign interests ensure their dominance of both African markets and economies. The former
AU's Permanent Representative to the US, Arikana ChihomboriQua, highlighted this neo
colonial control of African economies when she called out France for the continuing
economic strangulation of its former African colonies through a set of garroting policies
(ironically called "cooperation agreements''), which is extorted from its former colonies as a
condition for independence. Some of these so-called cooperation agreements included the
demand by the French government that its former African colonies deposit their entire
foreign reserves with the French central bank upon attainment of independence. These
emerging states were threatened with economic devastation if they chose an independent
economic future. Scared of the potential impacts of such devastations upon independence,
fourteen emerging states accepted this condition upon the attainment of independence. These
states included Benin, Burkina Faso, Ivory Coast (now Cote D'Ivoire), Mali, Niger, Senegal,
Togo, Cameroon, Central African Republic, Guinea Bissau, Equatorial Guinea, Chad, Congo-
Brazzaville, and Gabon. Thus, at independence, France confiscated the national reserves of
these countries. To date, the bulk of the national foreign reserves of these countries are held
by the French central bank and the French Treasury determines how much and the conditions
under which any of these reserves would be withdrawn. In other words, none of these
countries has an independent monetary policy and, in some cases, they do not even know
how much of their foreign reserves are held by France. Conservative estimate puts the total
amount of the foreign reserves France takes out of its former African colonies every year at
about $500 billion. African countries can only access 15 percent of this money each year and
will have to borrow any extra amount at commercial interest rates imposed by the French
Treasury, albeit the money belongs to them. France can and sometimes does veto requests
from its former African colonies to access any part of these foreign reserves. One condition
under which this veto often applies is the failure to submit to France an annual report of how
they spent the reserves they were previously permitted to access. This is a central requirement
for these African countries to continue to access part of their foreign reserve with the French
central bank. Before the accession to independence, France also demanded from its former
African colonies preferential treatment over the purchase and exploitation of their natural
resources, as well as over public procurement. In line with the pre-independence policy
extortion, French companies and interests must be considered in contract biddings before
other competing foreign interests. As a result of this requirement, French companies control
major investments and economic assets in its former colonies, including such utilities as
electricity, water, telephone, public transport, ports, and construction, as well as the
agricultural and banking sectors. As Yates documents, French parastatals represented national
licenses also amassed immense family fortunes. From these businesses came today's small
class of super-rich French profiteers whose strong ties to the former empire have made them
brand names of Francafrique. Another means through which France places a stranglehold
over its former African colonies is the imposition of its currency as part of the cooperation
agreements. France determines the exchange rates of this currency and guarantees its
convertibility. To ensure complete control of the monetary policies of its former African
colonies, the French central bank is usually represented on the sub-regional central banks of
these countries. Even after joining the Euro currency zone, France has continued to dictate
most of the monetary policies of its former colonies. Compliance with these arrangements has
been achieved through force and economic sabotage. For instance, when the founding
president of Guinea, Sekou Toure, refused to accept France's terms for independence, the
French government did everything possible to devastate its post-independence economy. The
French government immediately withdrew all its personnel which was vital for a stable
dismantled the national telephone system and the gadgets were shipped to France. The French
secret services also sabotaged the economy of the newly independent state by flooding its
economy with counterfeit currency. These sabotage activities were activated to deter other
independent-minded African leaders who defied France at different stages of their countries'
putsches. These included Sylvanus Olympio of Togo, Modibo Keita of Mali, David Dacko of
the Central African Republic, Maurice Yaméogo of Upper Volta (now Burkina Faso), and
Hubert Maga of Benin. It has been suggested that France had a hand in the military coups that
removed and/or killed these courageous leaders. France has also directly intervened in some
of these countries in support of compliant leaders. It is estimated that "between 1960 and
2005 France launched some 46 military operations in its former African colonies" to protect
its interests. The political and economic influence of France over its former African colonies
is as overwhelming today as it was during the colonial era. This influence manifested once
again in full force in 2019, when under the influence of the current President of France,
Emmanuel Macron, Francophone West African states re-named their common CA franc
currency as the "Eco" as a way of deflecting the increasing criticism of its economic
subservience to France. And in unilaterally renaming its currency, they disrupted both the
timeline and economic outline commonly agreed to by members of the regional economic
group, Economic Community of West African States (ECOWAS), for the adoption of a
common currency by the same name. Similarly, in the same year, Ariana Chihombori-Quao,
the former African Union's Permanent Representative to the US, was promptly relieved of
her position after her blistering criticism of the French continuing economic imperialism in
Africa. It was believed that the leadership of Francophone African countries demanded her
immediate removal. The letter which terminated her appointment was issued by Moussa Faki
Francophone African state. Beyond the demonstrable ability of France to undermine the
commitment of its comprador African leaders to regional free-trade areas, the speed with
which Arikana Chihombori-Quao was terminated by the leadership of the African Union
shows how beholden African leaders are to Western interests. This lack of economic and
policy independence will, no doubt, hamstring the development of the AfCFTA as outlined.
In similar ways, but without formally imposing such overt conditions for independence, other
former colonial powers in Africa, particularly Britain, have had an enormous influence on the
policies and political economy of their former colonies. For instance, Britain has maintained
information demonstrates its horrific role in the genocide against Igbo people during the
Nigerian Civil War; a colossal atrocity in which at least a million Igbo children were
deliberately starved to death to advance the economic interest of the British state. The neo-
colonial allegiances (and forced alliances) of African countries to their former colonizers will
area, as many of these allegiances are both institutionally linked and deeply rooted. Many
African states remain both institutional and commercial outputs of their former colonizers
and without breaking up these neo-colonial relationships, the fate of the AfCFTA is
indeterminate.
significant challenge to the proposed free-trade region. China has aggressively increased its
investments and consolidated its power in Africa since the late 20th century. Many African
states have received loans from it that are both low-interest and interest-free (but typically
collateralized). It has made significant investments in infrastructure projects like roads, trains,
and airports all over the continent. In addition, China helped finance the building of the new
African Union Commission in Addis Ababa, Ethiopia, and established its first military
outpost there in Djibouti. With annual commerce of more than $200 billion, it is currently
Africa's largest trading partner, displacing other significant economies. It is estimated that
more than 10,000 Chinese firms operate currently in the continent, with a value of over $2
trillion. It is also noted that Africa has displaced Asia as the biggest market for China's
construction contracts overseas. Recently, China announced a Belt and Road Africa
infrastructure development fund worth $1 billion and an additional $60 billion aid package
for African countries. The Belt and Road infrastructure fund is designed to overcome
physical and digital infrastructure deficits across Eurasia and Africa. It targets several
kilometers of construction in new highways and rail lines, as well as power plants, airports,
Most of these investments are completely controlled by Chinese companies, while others rely
on joint ventures between Chinese companies and the nations they are operating in. Chinese
traders have also inundated African markets with inexpensive (and occasionally subpar and
fake) goods, forcing out local businesses. Chinese immigration to the continent is at an all-
time high, and new Chinatowns are establishing themselves all over the continent as part of
an insurgent conquest of African economies. By 2014, over one million Chinese people are in
Africa building what some have described as "a new empire". The Chinese Mandarin
language and culture are gaining ground particularly among the youth in many African
However, most importantly, China has entrenched its economic interests in Africa through a
series of free-trade zones it has secured from several African states. In Nigeria, the Lekki
Free Trade Zone in the country's megacity, Lagos, is being developed in collaboration with
Chinese investors to get foreign investors, particularly from China, to move their
manufacturing to Nigeria. The first phase of this project will cost $5 billion and cover an area
of 3,000 hectares of land. While the Lagos State government of Nigeria holds 40 percent of
this investment, the other 60 percent is held by Chinese investors. Construction on this free-
trade zone, which started in 2007 as part of a strategy to consolidate economic and trade
cooperation between China and Nigeria, has gone to an advanced stage and a few Chinese
companies have started operations in the area. Similar functional Chinese free-trade zones,
industrial parks, and export processing zones have also been developed in many other African
countries, including Djibouti, Ethiopia, Kenya, and South Africa. In these free-trade zones,
Chinese companies are offered exemptions from taxes and tariffs as incentives to move their
companies to Africa. They also receive other financial incentives and business benefits,
which are often not extended to indigenous corporations. Unarguably, China has become an
indispensable economic behemoth in Africa. Given its entrenched economic interests and
investments and the multi-year management contracts it holds for many of its infrastructural
investments in the continent, it is hard to see how Chinese investors and merchants will be
displaced or excluded from participating both actively and dominantly in the emerging
The AfCFTA involves 54 African Union member states, each with its own economic,
political, and regulatory systems. Coordinating and harmonizing policies and procedures
among these diverse countries can be challenging. Ensuring effective communication,
The creation of an impartial and effective institution is necessary for the dispute settlement
5. Infrastructural Deficits
connectivity, hinders efficient trade flows within Africa. Limited infrastructure capacity and
poor connectivity increase transportation costs, result in delays, and limit the movement of
infrastructure projects are necessary to unlock the full potential of the AfCFTA.
African countries have varying levels of economic development and industrial capacity.
Some countries may face challenges in competing with more advanced economies, leading to
potential trade imbalances. Addressing these imbalances and ensuring equitable development
across the continent will be essential to ensure that the benefits of the AfCFTA are shared by
CONCLUSION.
This paper has extensively evaluated the legal and institutional framework of the Africa
Continental Free Trade Area in light of its functional missions, opportunities, and challenges.
Although the AfCFTA concept is excellent, there are valid doubts regarding its viability and
success. Good law cannot be put into effect if the political institutions are saddled with
onerous rules that create gridlock in the decision-making process. Additionally, good laws
implementing AfCFTA law into domestic law in member states can aid in law enforcement.