Concerns raised over implementation of continental free trade deal

Three months after the signing of the continental free trade agreement, concerns and challenges remain around the implementation of this landmark deal in Africa. The African Union, in partnership with the Afrochampions initiative, has been actively engaging with the private sector across the continent to raise awareness about the potential benefits of the agreement. However, during a recent session in Senegal, Alpha Sy, Managing Director at Sy Investments, shed light on the skepticism and fears that still exist within the private sector regarding the implementation of the free trade area. Sy highlighted the importance of the Afrochampions initiative in aiding the Ministry of Trade's efforts to sensitize the private sector. The session brought together various components of Senegal's private sector, including the Patrona, traders associations, shippers associations, and individual private sector leaders. It provided a platform for a frank discussion where concerns and doubts towards the implementation of the continental trade deal were expressed. One of the key concerns raised during the session was the general fear of the unknown. Sy noted that whenever a new mechanism or environment is introduced, there is a tendency for people to resist change and take time to adapt. Drawing parallels to a metaphor used by President Kagame during a business forum in Kigali, Sy likened this resistance to horses approaching water cautiously, some hesitating to drink and potentially missing out on the opportunity. Moreover, concerns were also expressed regarding the implementation of regional trade zones. Some private sector representatives in Senegal highlighted past failures in regional trade agreements, such as the West African Monetary Union, leading to doubts about the effectiveness of a larger trade area. Questions were raised about the disparity in economies across Africa, with fears of imbalance arising if borders are opened up without addressing economic disparities among nations. Additionally, there were apprehensions about the involvement of the private sector in the mechanisms for implementation. Some felt that their voices were not adequately considered in decision-making processes related to industries, production, and trade policies. This lack of involvement raised doubts about the inclusivity and transparency of the implementation process. Despite these concerns, Sy emphasized that the business community recognized the vast potential of accessing a larger market through the continental free trade agreement. He iterated that while there are valid fears and uncertainties, the overarching sentiment is that the agreement presents more opportunities than challenges. The prospect of tapping into the largest market in the world was viewed as a significant advantage that could drive economic growth and prosperity across the continent. In conclusion, the session in Senegal underscored the importance of addressing these concerns and fears to facilitate the smooth implementation of the African Continental Free Trade Agreement. By listening to the private sector, engaging in constructive dialogue, and ensuring transparency in decision-making processes, the African Union and national governments can pave the way for a successful transition into a more integrated and prosperous trading bloc in Africa.