AfCFTA and AU Protocol on Movement of Persons: Which should take precedence?
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By Tanatsiwa Dambuza
Africa is on the cusp of establishing the world’s most extensive free trade area and the world’s most expansive free movement area, but which one should be prioritized?
The African Continental Free Trade Area (AfCFTA) and the AU Protocol on Movement of Persons are two audacious and complementary initiatives that aspire to augment intra-African trade, integration, and development. However, both encounter considerable impediments in terms of ratification and implementation. The AfCFTA, which was inaugurated in 2018 and became operational in 2021, endeavors to eradicate tariffs and non-tariff barriers on most goods and services exchanged within Africa. The agreement has been endorsed by 54 of the 55 AU member states and ratified by 46 of them, as of February 2023. The AfCFTA secretariat, based in Accra, Ghana, is supervising the negotiations and implementation of the agreement.
According to the United Nations Economic Commission for Africa (UNECA), the AfCFTA will amplify intra-African trade by 52 percent in the short-medium term, creating more opportunities for cross-border commerce, investment, and employment. The AfCFTA will also provide a framework and platform for harmonizing policies and standards related to the movement of persons such as customs, immigration, labor, and social security. Moreover, the AfCFTA has more political momentum and support than the AU Protocol on the Movement of Persons, as evidenced by the higher number of ratifications and the operationalization of its secretariat and institutions.
The AU Protocol on Movement of Persons, which was also adopted in 2018, grants nationals of AU member states the right to enter, reside and establish themselves in other member states without discrimination. The protocol also covers issues such as mutual recognition of qualifications, portability of social security benefits, remittances, and procedures for specific groups such as refugees and migrants. The protocol has been signed by 32 AU member states and ratified by only four of them: Rwanda, Niger, Sao Tome and Principe, and Mali.
According to the International Organization for Migration (IOM), the AU Protocol on the Movement of Persons will facilitate and expedite the implementation of the AfCFTA by reducing transaction costs and barriers for traders, investors, and consumers. The AU Protocol on Movement of Persons will also enhance regional integration, cooperation, and solidarity among African countries, creating a conducive environment for trade negotiations and dispute resolution. Furthermore, the AU Protocol on Movement of Persons will address some social and humanitarian challenges affecting trade in Africa, such as refugees, migrants, asylum seekers, and pastoralists.
Refugees who fled xenophobic attacks recently protested in Cape Town demanding to be sent elsewhere. Brenton Geach/Gallo Images via Getty Images
Experts and stakeholders have divergent opinions on which initiative should be implemented first. Some argue that the AfCFTA should take precedence, as it would create more incentives and demand for the free movement of persons by increasing cross-border economic activities and opportunities. Others contend that the AU Protocol on the Movement of Persons should be prioritized, as it would facilitate and expedite the implementation of the AfCFTA by reducing transaction costs and barriers for traders, investors, and consumers.
For example, Mr. Wamkele Mene, Secretary-General of the AfCFTA Secretariat, said in a recent interview that “the free movement of people is an integral part of our vision for continental integration.” He added that “the free movement of people will enable us to have a larger pool of skills across the continent; it will enable us to have a larger consumer base; it will enable us to have a larger market for our goods.”
On the other hand, Ms. Aissata Kane Tall Sall Diop, Regional Director for West & Central Africa at IOM, said in a recent webinar that “the free movement of people is a prerequisite for trade.” She explained that “the free movement of people is not only about facilitating mobility but also about protecting human rights; it is not only about economic benefits but also about social cohesion; it is not only about regional integration but also about continental unity.”
Both initiatives are important components of Africa’s vision for continental integration and development. The challenge is to overcome the political, legal, institutional, and logistical obstacles that hinder their ratification and implementation. Civil society and private sector actors have a crucial role to play in advocating for and supporting both initiatives. Moreover, Africa can learn from the best practices and lessons learned from other regions that have implemented free trade areas or free movement protocols, such as the European Union or the Association of Southeast Asian Nations.
Africa has a unique opportunity to leverage its demographic dividend, natural resources, cultural diversity, and entrepreneurial spirit to achieve its potential. The AfCFTA and the AU Protocol on the Movement of Persons are key instruments to realize this potential. The question is not which one should take precedence, but how they can be implemented together effectively.
Tanatsiwa Dambuza is the Knowledge Associate for Trade at the DevDispatch. Connect with him on Twitter and LinkedIn