By Mwanaharusi Rashid.
At the recent Regional HR Summit, Sundeep Raichura, the Chief Executive Officer of Zamara Group a leading financial services company, highlighted the urgent need to actualize the formation of an African common market.
While the concept has been a longstanding aspiration for many African leaders, its full implementation remains a challenge, largely due to persistent barriers in several countries.
Raichura emphasized the transformative potential of an integrated African economy, noting that the continent’s gross domestic product (GDP) stands at $1.3 trillion.
However, he argued, the creation of a common market could amplify this figure, resulting in significant economic growth and development across the region.
Raichura shared these views while speaking at a two-day conference in Diani, Kwale County.
”If we can get the African Continental Free Trade Area (AfCFTA) agreement operational, and create a common market in Africa, it will be phenomenal for the continent,” Raichura said. “The GDP of our continent is $1.3 trillion. We can have a multiple effect if we create a common market. There has been a lot of talk over many years it’s high time we see action.”
The African Continental Free Trade Area (AfCFTA) was officially established in 2018, and since then, 54 African countries have signed onto the agreement, with 48 having ratified it. Eritrea is the only African nation that has yet to join the initiative.
AfCFTA aims to create a single market for goods and services, allowing for the free movement of people and investments across the continent.
Raichura’s call for action resonated with many at the summit, Emily Mburu, Director of Trade in Services, Investment, and Digital Trade at the African Continental Free Trade Area (AfCFTA). In her remarks, highlighted some challenges facing the AfCFTA, particularly in terms of infrastructure and transportation, which continue to hinder the full operationalization of the agreement.
Despite the ambitious goals of AfCFTA, several barriers continue to slow progress. Mburu pointed out that poor infrastructure, including inadequate roads and transportation networks, is one of the most pressing issues. Without efficient modes of transportation, goods and services cannot move freely between African countries, effectively undermining the core objective of the agreement.
In addition to infrastructure, regulatory misalignment between African countries poses another significant hurdle.
According to Mburu, the success of AfCFTA depends heavily on regulatory convergence, which involves harmonizing standards and regulations across member states.
“Regulatory convergence through a harmonized regulatory framework is crucial for the successful implementation of AfCFTA,” she said. Without this alignment, trade between African countries remains fraught with inefficiencies and complications.
Despite these challenges, both Raichura and Mburu expressed optimism about the future of the African common market.
Mburu highlighted the enormous potential for trade liberalization in services, which would unlock new market opportunities and foster relationships with new trading partners across the continent.
“Trade in services is crucial for Africa’s economic growth,” Mburu said.
She argued that the continent has the opportunity to diversify its economy beyond traditional exports such as raw materials and agricultural products. By focusing on service sectors like finance, healthcare, and technology, African countries can build new industries and create jobs, helping to alleviate some of the region’s most persistent economic challenges.
Mburu also emphasized the importance of developing regional value chains, which could help boost Africa’s manufacturing sector.
She noted that currently most African economies rely on the export of raw materials, with little value-added processing happening on the continent.
Strengthening regional value chains, she argued, could lead to increased production of finished goods and reduce Africa’s reliance on imports from outside the continent.
In addition to these economic benefits, the AfCFTA is also expected to play a critical role in sectoral development. By promoting the growth of specific sectors such as manufacturing, agriculture, and digital trade, African countries can develop competitive advantages in key industries, allowing them to better integrate into the global economy.
The AfCFTA, once operational across the continent, will provide a significant boost to African economies by creating a seamless, continent-wide free trade zone. “The AfCFTA has the potential to unlock Africa’s economy by fostering trade across borders without barriers,” she said. “This is a vital step towards improving economic collaboration and development among African nations.”
In conclusion, while the vision of a fully integrated African common market is still a work in progress, there is no doubt about its potential to transform the continent’s economy.
As Raichura and Mburu stressed, overcoming the current barriers such as infrastructure gaps and regulatory misalignment will require coordinated efforts and decisive action from African leaders.
With 54 countries already on board, and 48 of them having ratified the AfCFTA, the foundation for a common African market has been laid.
Now, as Raichura noted, it is time for African leaders to move beyond discussions and take the necessary steps to turn this vision into reality.
