Regional Integration Initiatives for Sub-Saharan African Economies

Creating and Strengthening the AfCFTA

The AfCFTA framework agreement, which 44 nations signed on March 21 in Rwanda, is a project that might accelerate the integration of the nations in Sub-Saharan Africa. As of October 2019, the AfCFTA Agreement has been approved by 54 countries, 40 of which had completed the necessary domestic procedures and 34 of which had filed their ratification documents. The AfCFTA went into effect in January 2021 for the nations that presented their instruments of ratification.

In terms of membership, this implies that Africa has implemented the most significantworld's free trade agreement (FTA), and it is anticipated that this will alter the future framework for trade and investment among the nations in the area. The AfCFTA will increase intraregional trade, enhance the synergies between production and exports, foster job growth, and lessen the participants' exposure to commodity price volatility. The topics of investment, competition and intellectual property rights will be the subject of more talks.

The AfCFTA has to be strengthened to speed up the implementation for the whole area; it will also be crucial for the nations that have not yet ratified the agreement and submitted their documents to do so. The AfCFTA is a fantastic recent accomplishment, but Nigeria's latency in signing the deal indicates doubts about the political commitment of the biggest economy in the area, which may limit further integration efforts that need a substantial degree of political commitment. Additionally, member nations must avoid establishing a trade zone that expands their captive markets without boosting their companies' competitiveness and ability to compete on the world market.

Improving physical integration, fostering business integration, and boosting political collaboration should be the three pillars of the strategy for building an integration necessary for a successful AfCFTA. Significant investment in these areas can decrease the costs of distance and fragmentation.