COVID-19: How the pandemic is affecting Africa’s free trade plans

The African Continental Free Trade Area (AfCFTA) has been a beacon of hope for African economies, promising to enhance trade and economic integration across the continent. However, the COVID-19 pandemic has thrown a wrench into the gears, sparking debates on whether the scheduled start of trade in July should be postponed. While some argue for a delay to focus on the health response and essential needs of the population, others advocate for pressing forward with the AfCFTA as a vital tool for economic recovery. CNBC Africa spoke to Edem Adzogenu, Co-Chair of the Afro-Champions Initiative Executive Committee, shedding light on the importance of maintaining the momentum for the AfCFTA amidst the ongoing crisis. Adzogenu emphasized that the AfCFTA is not just a trade agreement but a crucial instrument to combat the economic fallout of the pandemic in Africa. Before the outbreak of COVID-19, the AfCFTA had garnered significant support, with 22 countries ratifying the agreement by May 2019. The stage was set for the official start of trade on July 1, 2020, with high hopes of boosting intra-African commerce. Despite the unforeseen challenges posed by the pandemic, Adzogenu stressed the urgency of pressing on with the AfCFTA, citing the continent's vulnerability to trade deficits and reliance on global supply chains. He highlighted the need for Africa to reduce its dependence on imports, strengthen its industrial base, and foster regional trade to ensure economic resilience. With African countries facing a decline in demand for key export commodities like oil, minerals, and tourism, Adzogenu underscored the imperative for the continent to enhance its trade readiness and seize the opportunities presented by the AfCFTA. The pandemic has underscored the fragility of global supply chains and the importance of self-sufficiency in critical sectors. Adzogenu's remarks echoed the sentiments of many trade experts who view the AfCFTA as a strategic tool for post-pandemic recovery and long-term economic growth. Despite concerns raised about the implementation readiness of African governments, with some countries scoring below 50% on the readiness scale pre-pandemic, Adzogenu urged a collective commitment to making the AfCFTA work. He acknowledged disparities in preparedness among nations but emphasized that the shared goal of economic prosperity should drive efforts to overcome existing challenges. The AfCFTA represents a historic opportunity for Africa to reshape its economic landscape, foster innovation, and create jobs for its burgeoning youth population. As consultations continue with African Union member states on policy measures and activities to sustain the AfCFTA, the path forward remains clear - Africa must stay the course and leverage the AfCFTA as a catalyst for transformative change. In a time of unprecedented global disruption, the AfCFTA stands as a beacon of hope for Africa's economic future, offering a pathway to prosperity and resilience in the face of adversity.