By Tokunbo Lijadu-Oyemade
TOPIC: Youths and the African Continental Free Trade Agreement: Paper presented at the African Union ECOSOC-Nigeria’s celebration of the 2020 International Youth Day on Friday 14th of August, 2020
Good morning distinguished participants and co-presenters.
I congratulate the African Union Commission for drawing up the African Continental Free Trade Agreement. I also congratulate the Host of today’s Programme, the Nigeria AU-ECOSOC Office, for the programme and I am honoured to be part of the fine line up of Speakers here today. My hope is that our youths will leave this webinar with several takeaways today. Thank you.
Before we delve into the topic of this presentation, I’ll like to say a few words about the creation of the African Union Commission and I’ll be brief.
Africa’s history did not begin with or after the era of the Slave Trade, therefore, Africa’s story can be re-written into the future on the foundation being strategically laid by National and Regional leaders dovetailing into the vision of the founding Fathers of the erstwhile Organisation of African Unity. For us in Africa, the African Union Commission is the vehicle to Africa’s enviable future.
It is, therefore, a no brainer that our youths are being globally celebrated today by the African Union on this special day. This celebration connotes the realization that the youths under the mentorship of adults, of course, can be relied upon to harness all available human and material resource endowments of Africa to build upon the foundation being presently put in place by African leaders under the African Union Commission. This speaks directly to Goal 17 of the United Nations Sustainable Development Goals better known as Agenda 2030 to which all African states are signatories. Goal 17 is PARTNERSHIPS for the goals. Furthermore, we all know that the Mantra of Agenda 2030 is to LEAVE NO ONE BEHIND. As far as I’m concerned from Sustainable development Goal 1: NO POVERTY to GOAL16: PEACE, JUSTICE AND STRONG INSTITUTIONS… none can or will be successfully achieved without taking Africa’s Youths, women and the Civil Society on Board.
For the purpose of facilitating the integration of the African Continent and engendering even Development, leaders of Africa’s contiguous states agreed among themselves to create Regional Economic Communities or [RECS]. These RECS now form the PILLARS of the African Union, has been able to achieve certain degrees of interdependence and economic convergences. They have also adopted and implemented strategic cooperation programmes that have facilitated intraregional trade and succeeded in raising the living standards of their citizens.
The following Regional Economic Communities (REC’s) are the major pillars on which the African Union stands: 1. The Economic Community of West African States (ECOWAS) for the 15 West African states. 2. The Maghreb Arab Union, for the 5 states of North Africa. 3. The Central African Economic and Monetary Community, which started off as a Customs Union comprising the six Central African States. 4. The EAST African Community (EAC) comprising 6 East African countries. 5. The Southern African Development Community (SADC) comprising 16 countries in the Southern African region. 6. The Common Market of Eastern and Southern Africa (COMESA) comprising 24 member states. The latter is the largest sub-regional Economic Union in Africa today.
It is important to understand that the overarching objectives of ALL the Regional Economic Groupings hinge on their desire to integrate the economies of the countries in their respective regions thereby creating sub-regional Economic Unions. They, therefore, foster cooperation through policy harmonization in all economic sectors, particularly fiscal and trade policies and have successfully implemented major strategic economic cooperation programmes in sectors such as transportation and power. They have achieved visa-free movement of persons, adopted common passports, free trade and have each created sub-regional Common Markets. However, each region is still faced with the dire need to reduce extreme poverty and promote economic stability, establish, monitor and maintain peace and security thereby contributing to the peace and progress of the African Continent. As is apparent, these tasks/challenges are daunting enough for the smaller sub-regions and would have been almost unachievable if directly undertaken at the continental level by the African Union Commission. Nevertheless, the achievements made by the REC’s in their respective regions have contributed to accelerated dialogues leading the African Union towards the ultimate establishment of an African Common Market.
The aims and objectives of the African Union can, therefore, be summarized as the simple vision of fostering the creation of “An Integrated, Prosperous, and Peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.” Nevertheless, Africa’s development priorities include the following: (i) structural economic transformation and inclusive growth; (ii) science, technology and innovation; (iii) people-centred development; (iv) environmental sustainability / natural resources management, and disaster risk management; (v) peace and security.
The African Continental Free Trade Agreement (AfCFTA)
This is a Pan African instrument for the creation of a SINGLE CONTINENTAL MARKET for the exchange of goods and services fueled by free movement of persons, businesses and right of establishment. This Agreement justifies the mutation of the 1991 African Economic Community into the African Union in July 2002. Fortunately, other communities of Africa under the A.U. Umbrella has achieved some of these goals and by implication, facilitated their achievement at the continental level. The benefits of being part of the African Single market, which is a precursor to the Custom Union is enormous. More than ever before, African states are now being challenged to improve their vital but hitherto underdeveloped national infrastructures in order to enhance the creativity and productivity of their real sectors and also meet the conditions of the agreed gradual tariff reduction Protocols and, in particular, the inevitable RULES OF ORIGIN qualification required for their products to trade within the African Single Market.
Under the Single Market, African states will agree to freely accept goods and services from each other without tariff and non-tariff barriers. One important point to note is that the Cornerstone of Regional Economic integration is FREE TRADE. This, in brief, is what the AfCFTA has in view presently. Nevertheless, there are still many hurdles to scale at the level of governments regarding national interest vis a vis the continental interest which, must be negotiated and agreed upon via protocols.
However, every positive action STARTS WITH Governments’ Political Will to RATIFY AND DOMESTICATE THE AfCFTA AGREEMENT INTO NATIONAL LAWS. African states must put in place ALL Social and Economic Conditions to enhance Popular Participation because this is an agreement that benefits the real sectors of the African economies where smart industrialists will leverage on the economy of scale leading to lower cost of production and ultimately, lower consumer prices.
According to Worldometer 2020, Africa’s population as at yesterday, Thursday 13th of August, 2020 is put at 1,344,075,278b people. This is the strength of the African market, which is principally a market of consumers at present. This figure represents 16% of the global population and it is a no brainer that Africa consumes a lot higher than 16% of global exports. Our consumer nature has led to social problems including hopeless joblessness complicated by internal and cross border conflicts and other security challenges; all of which are at the very foundation of clandestine migration from Africa to the West… It is often said that BRAIN DRAIN IS AFRICA’s loss. The AfCFTA is one of that vehicle that can reverse and will reverse the Brain Phenomenon for Africa and turn it into Brain Gain to the chagrin of the MOCKERS OF AFRICA or those that have benefitted and are still benefitting from Africa’s present state of affairs.
The ultimate aim of the AfCFTA is the creation of an AFRICAN CUSTOM UNION. The establishment of a Customs Union eliminates Bilateral Trade Agreements between individual African states and countries outside the Union. Therefore, as is the case with the European Union (EU), which is currently the largest Customs Union globally (27 countries); trade negotiations with African states that have agreed to join the African Customs Union would henceforth be conducted under the umbrella of the African Union Commission, which shall apply ONE COMMON AFRICAN POSITION to such negotiations.
Please remember that under the Customs Union, all member countries enjoy duty-free businesses and trade while applying A COMMON EXTERNAL TARIFF to all imports originating from third countries; i.e. countries outside the UNION.
It is the responsibility of member nations of the African Union to take steps to ensure the accelerated realization of the objectives of the AfCFTA. It is high time to build the foundation of Africa of the dreams of our children and grandchildren. It is time to prevent and stop the present generations of Africa’s well-trained youths from dying in the Sahara desert or drowning in the Mediterranean Sea or in the Gulf of Guinea for that matter in their avoidable search for the proverbial greener pastures only to discover, as has been discovered and re-discovered, that the grass isn’t really greener on the other side.
To the NIGERIAN YOUTHS.
I will like to commend the decades of hard work by groups of focused Nigerian youths and the efforts they still deploy to support national development. In the same breath, I recognize the responsibility that some Youths have enjoyed in terms of some form of economic empowerment from successive Nigerian governments. I, therefore, urge the government to realign Youth development programmes and projects with the realities of the global development goals and agenda in a sustainable manner and ensure that no one is left behind. We at Kin’s of Africa for Development and re-integration advocate the integration of diaspora skill sets into national development. There is the homing instinct that drives our youths in the diaspora to want to join hands with their home governments in nation-building. Governments at all levels must give them the chance to prove their mettle.
More importantly, I’ll like to particularly recognize groups of Nigerian youths that are focused on restructuring the economic sectors and encourage them to remain focused on value addition because this is the MAGIC WAND TO SUSTAINABLE PRODUCTION AND JOB CREATION.
To youths all over Africa and in the Diaspora, I encourage you to obtain a copy of the AfCFTA, situate your vision on its component provisions, develop a specialization in your chosen area and engage the relevant agencies of government in dialogues; also lobby your legislators and participate in public hearings of bills. Failure to do this means you’re not permitted to complain about laws that you consider unfavourable.
Africa’s population is young with an average age range of 19years in a continent that is safely larger than the whole of Europe, China and the United States put together. Africa is also endowed from Cape to Cairo with an abundance of green vegetation and arable land as well as mineral deposits that can fuel the next industrial revolution but they do not benefit us except as consumers. I say it’s time to construct that much talked about Cape to Cairo Rail line to foster not only African Integration but also to boost intra-African trade.
In closing. The French say, “la charité bien ordonnée commence par soit même or la charité commence a la Maison.” In English, it is the familiar maxim: Charity begins at home. Let’s begin to fix Africa because Africa’s greatness is in her own hands.
Thank you for your kind attention.
Dcns. Tokunbo Lijadu-Oyemade.
National President and International Vice President,
Kin’s of Africa (KINSAF) for Development and Re-integration.
14th August, 2020
