It is a market of 1.2 billion consumers and powerful $ 3.4 billion whose foundations are being laid following the official implementation of the African Continental Free Trade Area (Zlecaf) on January 1, 2021. The largest commercial space in the world in terms of number of participating countries. At a time when the effectiveness for the entire continent of this unprecedented trade block still raises many questions, Welcome Mene, secretary general of Zlecaf, during a press conference on Tuesday January 12, made a point of specifying the state of mind and especially the conditions in which the process which promises to be long will evolve.
“There are countries that are ready, and we’ll start with those. We also have countries that have made a strong commitment and we are sure that they will follow soon, ”said the South African diplomat.
According to Wamkele Mene, the countries “Ready” Ghana, Egypt and South Africa in particular have the trade infrastructure required for trade to function properly. He also says that several other countries are in the process of putting these infrastructures in place.
Advanced negotiations on rules of origin
To date, as a reminder, 54 countries out of 55 have signed the Zlecaf agreement, while 35 countries out of 54 have ratified it. Nigeria – the continent’s leading economic power – which has long remained reluctant, the subject of intense lobbying – especially from Cyril Ramaphosa, then president of the African Union – is one of the last countries to have deposited its instrument of ratification of the agreement.
On several occasions, the African Union has said that it is aware that the full implementation of the Zlecaf would take several years, especially as issues related to rules of origin, non-tariff barriers … are still debated. In this regard, however, the secretariat of the Zlecaf is reassuring, affirming that nearly 90% of the rules of origin planned for the implementation of the agreement have already been negotiated, with the objective of encouraging creation of jobs in the different economies of the continent, since Zlecaf mainly promotes products with African added value.
“Show a trade deal where all states parties were ready on day one! “
Also at this stage, the secretariat of the Zlecaf brushes aside the criticisms leveled against the process.
“I hear the criticism from some parts of the world. I want to ask them to show me a trade deal where all the states parties were all ready to trade from day one! “, Mene protested, citing as an example the European trade agreement which “As we have all seen, still undergoes fundamental changes”.
As such, during the ConnectLive of The Africa Tribune organized last November on industrialization, Carlos Lopes, former Executive Secretary of the United Nations Economic Commission for Africa and Professor at the Nelson Mandela School of Public Governance, University of Cape Town and at Sciences Po, Paris, underlined the complexity of the project. “Zlecaf is a fairly complex process. From the point of view of the requirements in terms of protocol sophistication, it is much more difficult today to establish free trade zones than 20 years ago. because we have a lot of regulation, in particular in terms of intellectual property, in terms of rules of origin, we have the mechanisms for conflicts, etc. ”, explained the Bissau-Guinean economist before adding : “We will have to harmonize things so that we can actually see the results. But what is important is that we can already use the entry points that are available to us ”.
These countries that are active
On a continental scale and in a context of economic recovery where several experts see Zlecaf as a catalyst, the countries of the continent are active, each at their own level, to be able to take advantage of this vast market. Algeria, for example, is counting on this commercial space to finally get out of its strong dependence on oil and gas exploitation. The public group of land transport of goods and logistics (LOGITRANS) is working on the development within its ports of international transit zones and has just created a branch specializing in international transport which will be responsible for supporting economic players. Algerians in transporting their goods to other African markets.
Kenya, for its part, planned to increase its general production. A major exporter of horticultural products, tea, coffee, but also cement, the country of Uhuru Kenyatta intends to focus on agrifood within the framework of the Zlecaf and is already mobilizing its manufacturers in this direction.
Neighboring Rwanda, one of the very dynamic countries recently in the field of industry, is also preparing and counting on a strong enlistment of the private sector to respond adequately to the challenges of the Zlecaf. “The need for each African country will be to be able to offer products and services that are competitive. Least developed countries have ten years to liberalize their markets and five years for middle income countries. This gives us a chance for Rwanda as a country to prepare not only for this new competition, but also these new opportunities represented by access to the entire African market ”, detailed during LTA’s ConnectLive Soraya Akuziyaremye, Minister of Trade and Industry, recalling that the agreement on non-tariff barriers is essential.
An economic block beneficial on several levels
Concretely, according to an estimate by Unctad, the Zlecaf should allow an increase in the GDP of African countries of the order of 3%. In the opinion ofHippolyte Fofack, Chief Economist and Director of International Cooperation at the African Import-Export Bank (Afreximbank), “Zlecaf is the most important reform that the continent has known since independence. This integrated market will boost the competitiveness and productivity of African companies, and will reduce the risk of operating in partitioned markets. This is significant. Economies of scale will therefore be very beneficial for the continent ”. And for this project to be a success, the Cameroonian economist considers the implementation of consistent policies crucial and supports reforms over a long period. “For example the strict application of the rules of origin will be fundamental for the success of industrial development models such as import-substitutions”, he said.
Currently, the AU authorities are also working on digital which, according to them, represents an important lever to accelerate the operationalization of the Zlecaf in the current context of health crisis. Moreover, on the eve of autumn 2020, the AU announced the implementation of different technological platforms to effectively and safely deploy the African trade bloc.
The attentive and active look of Africa’s partners
Internationally, the continent’s partners are closely monitoring the process. Africa’s second largest trading partner after China, India is already positioning itself in relation to Zlecaf and plans to create value chains with Africa. Mobilization with Indian investors and economic actors is also underway. Carlos Lopès, in particular, believes that the continent should immediately negotiate with its international partners, in particular the major world economic powers.
“I am committed to my 1.2 billion African compatriots”
However, beyond the work, analyzes, negotiations and even some reluctance, … Wamkele Mene intends to defend at all costs the Zlecaf agenda in the interest of the continent:“I pledge to you, my 1.2 billion African compatriots, that as long as I am Secretary General, I will do my best and I will fight for our dream, that of an integrated African market”.
