How African countries can deepen continental trade

Rwanda recently hosted the second edition of the Africa Continental Free Trade Area Business Summit, Biashara Afrika, aimed at deepening trade within the continent by investing in the future. The forum highlighted the need to boost intra-African trade, which currently stands at only 17 per cent, far below the target of 40 per cent. To shed more light on the key takeaways from the summit, CNBC Africa's Aby Agina had an insightful discussion with Johanna Leblanc, a National Security Law and Foreign Relations Expert from Adomi Advisory Group based in Washington, D.C. Leblanc emphasized the importance of the African Continental Free Trade Agreement (AFCFTA) in strengthening the continent's economies and reducing reliance on external sources. With a population of 1.2 billion and an average age of 19, Africa represents significant untapped potential for trade. Leblanc highlighted that the AFCFTA presents an opportunity for countries to engage in mutually beneficial trade and harness Africa's abundance of critical minerals. Addressing the pressing issues hindering regional trade, Leblanc stressed the need to tackle challenges such as infrastructure issues, cross-border barriers, and visa restrictions. She commended Kenya's efforts in lifting visa restrictions for certain categories of individuals and urged other countries to follow suit in order to facilitate the smooth implementation of the AFCFTA. Furthermore, Leblanc discussed the importance of navigating access to markets and fair trade policies amidst protectionist tendencies. While acknowledging countries' desire to protect domestic markets, she underscored the need for policies that serve the greater good of the continent. Leblanc highlighted the transformative potential of the AFCFTA, citing projections of trillions of dollars in increased GDP and lifting millions out of poverty. The conversation also touched upon the evolving trade dynamics between Africa and global powers like the United States. Leblanc noted a shift in the dialogue towards trade and investment rather than aid, signaling a growing recognition of Africa's potential. She called for a revitalization of the Africa Growth Opportunity Act (AGOA) to better align with current market dynamics and complement the AFCFTA. As the discussion drew to a close, Leblanc emphasized the importance of the U.S. fully engaging with Africa to ensure mutual benefits. She highlighted the need for infrastructure investments and mutually beneficial policies while urging African governments to advocate for policies that advance both African and American interests. In conclusion, the Biashara Afrika summit underscored the immense potential for economic growth and prosperity through regional trade agreements like the AFCFTA. By addressing challenges, fostering collaboration, and promoting fair trade policies, African countries can unlock new opportunities and drive sustainable development across the continent.