At the highest level, each member state should announce changes to immigration policies on free movement of Africans within the continent. Presidents of Ghana, Kenya, Rwanda and Nigeria publicly announced that no African will require a visa to enter their respective countries. Such proclamations are important quick wins as they avoid reputational risks when member states’ actions or inactions are contrary to agreements reached at AU summits.

Currently Africans do not need visas to enter at least 30 African countries, and there is optimism about the rollout of an African passport as agreed by heads of state and governments in July 2016. A few countries such as South Africa and Ethiopia are, however, hesitant to allow visa-free entry, given expected loss of revenue. There is also the possibility of criminals taking advantage of open borders to export mayhem. To mitigate this challenge, the AU must adopt biometric identity technology.

To put intra-continental trade on track from the outset, the issue of origin of goods should be dealt with before the 1 July start date. Rules of origin have always been a problem in many trade agreements and AfCFTA will not be an exception. Minor conflicts around this often lead to enormous losses when non-tariff measures like administrative bottlenecks at border points are used to frustrate partners.

Technology should inform the formulation of a comprehensive policy that outlines the application of these rules to limit their violation by member states.

A blockchain technology-based electronic certificates of origin (eCOs) was successfully piloted and commercialized in Singapore.  The technology issues export documents certifying the country of manufacture or shipment, and instantaneously reports to all interested parties. The digital records cannot be deleted or altered. Several other countries, including Kenya are using the same to modernize the issuance of these trade facilitation processes. Blockchain is immutable and promotes transparency – a low hanging fruit that will bolster trust among member countries. 

There are other medium and long-term imperatives for realising Africa’s dream: opening of African skies to facilitate cheaper air transport services; building of infrastructure (especially access to affordable broadband) and fighting corruption.

In the long-term, focus must be on comprehensive infrastructure such as ports, roads and power supply. These are projects that, if packaged well, could attract investments. Togo, for example, has entered into public private partnership, carried out port reforms, and improved transit to connect with neighbouring landlocked countries, to become a major West Africa maritime hub.

One of the greatest risks to the AfCFTA will be over-reliance on aid to finance its activities. If the Agreement is to succeed, Africa must mobilize its own resources to ensure the Secretariat’s budget, and further build institutions that will guarantee AfCFTA’s success. Other risks include diverse non-tariff barriers, and the lack of policy coherence and economic power symmetry between countries.

And as July 1 nears, only 28 countries have ratified the agreement. It will require a majority of the 55 AU member states to assent to the Agreement for it to ensure meaningful free movement of goods and services – the cornerstone of intra-Africa trade.

Although the slow approach by some countries to the ratification of the Agreement could be related to fears of potential revenue loss and of foreign goods flooding domestic markets making it difficult for local industries to compete, mistrust is a key factor.

There is always resistance to change, but with a proactive communication and advocacy strategy, using technology to build trusted systems and investment in infrastructure, the AfCFTA Secretariat should succeed in realizing, not just the world’s largest economically and socially integrated block, but Africa’s Agenda 2063 vision.

Africa Renewal