Association For Strategic Culture and Research Foundation

When the African Continental Free Trade Area (AfCFTA) was initially proposed at the African Union summit in 2012, it had two goals: First, build a pan-African agenda in trade and cooperation. Second, lift a large percentage of people out of poverty by instituting structural economic changes and cooperative legislation.

The potential to increase trade, economic growth, job creation and integration across the continent remains enormous, because today, only around 17% of African trade flows take place between African countries.

Perhaps the most controversial aspect of the AU Summit was the challenge by South Africa and Algeria to the unilateral decision made during 2021 by Commission Chair Mahamat to grant Israel observer status within the continental organization. Historically the progressive and anti-imperialist forces in Africa have demonstrated unconditional solidarity with Palestine along with other national liberation movements fighting colonialism.

Long before this summit, European Union members and business investors have been making consistent efforts at capitalizing on and exploring several emerging opportunities offered by the newly introduced African Continental Free Trade Area (AfCFTA), which provides a unique and valuable access to an integrated African market of 1.3 billion people. In practical reality, it aims at creating a continental market for goods and services, with free movement of business people and investments in Africa.

The AU and the EU, both together and individually, must focus their efforts on the appropriate vehicles for attaining this goal. For its part, the AU will need to establish stronger institutions capable of nurturing economic growth and ensuring that its gains are widely shared. As recent coups in West Africa show, many African countries have a long way to go to establish good governance and thereby provide for their populations.