Africa: It's Time to Reach Out, if…
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By Adebayo Abubakar
No country in the world is self-sufficient, self-dependent, or self-contained, as countries are mutually dependent for survival. This dependency is what engenders the evolution of the ever-shrinking global community, bringing about the concept of globalization. Countries are stronger, only, in their respective areas of comparative advantage. Therefore, they have to go into bilateral (and sometimes, multilateral) agreements with each other, to get some commodities with which they are less endowed.
So, what Africa lacks in some basic ingredients of socio-economic development like visionary leaders and strong institutions among other things, she makes up for in mineral and human resources which are sorely lacking in some socio-economically advanced continents.
With that, it is safe to infer that Africa has what it takes to be an equal partner to the rest of the world, in any bilateral, or multilateral relation, courtesy of her natural endowments, in addition to a massive population – that is talking about a market that very few investors can ignore. Those are part of the core strengths of the African Continental Free Trade Area (AfCFTA). These resources form the foundation on which Africa’s socio-economic prosperity could be built. This is the bedrock of the “Agenda 2063 “integrated, prosperous and peaceful continent”, as envisioned by the African Union (AU).
The AU is an offshoot of the defunct Organisation of African Unity (OAU) on whose existence the curtain was drawn in 2002 following the formation of the latter. Some people would argue that it is a mere change of nomenclature – an old wine in a new bottle. True as that may be, it would not have been possible to galvanize the stakeholders into such actions that would take the continent to the next level of socio-economic advancement, [part of which found expression in the launching of the [“Agenda 2063”] without that change in the nomenclature.
The world, as the saying goes, is a global village. Nobody, no country, no group of countries, and no continent lives in isolation as I have said earlier. If Africa is to realize her socio-economic potential, it is high time the AU reached out to other multilateral organizations like the United Nations (UN), and the European Union (EU), among others, through their specialized agencies, like the United Nations Conference on Trade and Development (UNCTAD), the International Finance Corporation (IFC). IFC is that unit of the World Bank that deals with the private sector. It is the largest global development institution focused on the private sector in developing countries. The likes of G7, G20, and BRICS countries (Brazil, Russia, India, China, and South Africa), are also strategic enough to have their partnership cultivated, while efforts should be made to also explore such legal frameworks as the African Growth and Opportunity Acts (AGOA) to advance the course of AfCFTA. The AU can do this through its specialized agencies like the Economic, Social and Cultural Council (ECOSOCC), the African Development Bank [AfDB, the AfreximBank, New Partnership for Africa’s Development (NEPAD), etc, to launch the continent on the path of sustainable socio-economic growth and development.
Image credit: 2020 Africa Sustainable Development Report
AU must endeavor to explore how a mutually rewarding partnership could be struck between these global bodies, and the AfCFTA, to strengthen and accelerate the development of the latter into a global trading force. I am very confident that the masterminds of AfCFTA never intended to be a scheme to facilitate trade among African countries only. It is intended to position the continent as an ideal trade partner to the world’s major trade or economic blocs. Therefore, Africa must reach out now rather than later, as it stands to benefit more than forex earnings. And if efforts have been made in this regard, there is a need to intensify it.
These benefits could be in terms of “transfer of technology”, and “access to cheaper credit facilities for local entrepreneurs”, among others. That would go a long way in stimulating and strengthening the Micro Small and Medium-Scale Enterprises (MSMEs), that are major drivers of any economy, with AfCFTA being no exception.
It is, therefore, time for the AU to make those handshakes across the Atlantic, Mediterranean, Indian and other oceans, for those multilateral alliances that would strengthen the continent’s strategic position in the global economy.
Adebayo Abubakar is a Nigerian journalist. You can reach him via email, marxbayour@gmail.com