₦airaland Forum

Forty-four African countries have signed an agreement establishing a free trade area seen as vital to the continent’s economic development, the head of the African Union said Wednesday.

The creation of a free trade area — billed as the world’s largest in terms of participating countries — comes after two years of negotiations and is one of the AU’s flagship projects for greater African integration.

“The agreement establishing the CFTA (African Continental Free Trade Area) was signed by 44 countries,” said Moussa Faki Mahamat, chairman of the AU commission.

However, the agreement will still have to be ratified at a national level and is only due to come into force in 180 days.

Nigeria is notably absent from the signatories after President Muhammadu Buhari pulled out of this week’s launch in Rwanda saying he needed more time for consultations at home.

One of Africa’s largest markets, Nigeria hesitated after objections from business leaders and unions — a sign that getting the deal through scores of national parliaments may face several hurdles.

“Some countries have reservations and have not finalised their national consultations. But we shall have another summit in Mauritania in July where we expect countries with reservations to also sign,” said Albert Muchanga, the AU Commissioner for Trade and Industry.

However other economic powerhouses South Africa, Kenya, Morocco, Egypt, Ethiopia and Algeria — known for strict protectionist policies restricting imports and exports — did sign the deal.

If all 55 African Union members eventually sign up, it will create a bloc with a cumulative GDP of $2.5 trillion (2 trillion euros) and cover a market of 1.2 billion people.

Currently, African countries only do about 16 percent of their business with each other, the smallest amount of intra-regional trade compared to Latin America, Asia, North America and Europe.

And with average tariffs of 6.1 percent, businesses currently pay higher tariffs when they export within Africa than when they export outside it, according to the AU.

“If we remove customs and duties by 2022, the level of intra-African trade will increase by 60 percent, which is very, very significant,” Muchanga told AFP in an interview before the summit.

‘No room for the weak’
Proponents of the deal argue that African economies on their own are too small to support economic diversification and industrialisation on their own and will benefit from having a unified platform to negotiate trade deals with wealthier nations.

The “CFTA will make Africa one of the largest economies in the world and enhance its capacity to interact on equal terms with other international economic blocs,” said Faki in a speech before the signing ceremony.

“The world is changing, and changing at a great speed. International competition is fierce. It leaves no room for the weak.”

However, critics highlight a dearth of roads and other infrastructure linking different African nations, as well as the fact that many countries do not manufacture goods their neighbours may want to import, as challenges to the deal.

Sola Afolabi, a Nigeria-based international trade consultant, told AFP the fact already-existing regional trade blocs were not working, should be a red flag.

“If there is no reward for compliance and there is no punishment for non-compliance, then it is going to be a very nice agreement without any teeth or any legs,” he said.

Breaking the trend
Faki acknowledged that Africans “have seen so many proclamations remain a dead letter, so many commitments without practical execution that they have come to doubt the strength of our commitment.”

He urged for a break in this trend, calling for a deal that “must confound those who, outside Africa, continue to think — with barely-concealed condescension — that our decisions will never materialise.”

The CFTA is a key part of the AU’s long-term development plan Agenda 2063, which calls for easing trade and travel across the continent.

At its most recent summit in Ethiopia in January, AU member states agreed to a common air transport market that could drive down airfares, as well as plans for visa-free travel for Africans across the continent.

Also on Wednesday, 27 countries signed the protocol agreeing to the free movement of persons across the continent.

https://www.channelstv.com/2018/03/21/nigeria-absent-as-44-african-nations-sign-free-trade-area-agreement/amp/

engineerboat:
Nigeria Absent As 44 African Nations Sign Free Trade Area Agreement

source please

Very funny APC led government.

Pulled out for more consultations while other country are still meeting

things are really getting bad in this country to a point that even Ajala the traveler can't travel anymore...

Not surprised considering Nigeria's protectionist attitude. Let's see if they change their minds later.

Who do bubu wanna consult with again, just imagine there is no country like Nigeria, and buhari is the President of north east and north west,no one would have miss him Whether he sign or not.

I support a strong regional government with there paramilitary and military,so people that love the name Nigeria will have nothing to cry about

BabaOwen:
Who do bubu wanna consult with again, just imagine there is no country like Nigeria, and buhari is the President of north east and north west,no one would have miss him Whether he sign or not.

I support a strong regional government with there paramilitary and military,so people that love the name Nigeria will have nothing to cry about

He need to direct the latest APC movie

We mustn't carry last.


We need to be part of this pact, in this millenia, we can't afford to disconnect /isolate ourselves from transregional /transcontinental economic integration, that in its simplest of terms are counterproductive, because what ever affects us affects our neighbors, be it retrogression,or progression, vice versa, when we sneeze, our neighbors catch cold, the shock reverberates and transcends to our neighbors, and this could have counter implications, which would definitely make or Mar the region. It is a dangerous presipise that is avoidable.

Case in point, the bokoharam terrorism transformation from little meagre cells to full blown terror group crisscrossing Nigeria, niger, Chad, Cameroun,
Ebola affecting Liberia, Guinea, Sierra Leone, Nigeria, Cameroun etc,
Opening of lago dam gates of Cameroun leading to flooding in Nigeria,
Bakassi Peninsula impass,
Tauregs/fulani clash,
Desertification of Sahara
Militancy and pirates affecting inflow of investments
Depletion of Lake chad
Political instabilities etc

The world is dismantling economic trade borders to bring economic cohesion, it is still a global village and will remain like that for the umpteenth time and nearest future,
In rail infrastructure,
It is obvious from all indications that Kenya is linking Nairobi, Nakuru to Mombasa to dares Salam in Tanzania, To Kampala in Uganda, to Addis Ababa in Ethiopia to Mogadishu in Somalia to Djibouti, Kigali - Rwanda in East Africa,

While southafrican jozi links Harare, bulawayo, in Zimbabwe, Luanda in Angola, Botswana, Lesotho, etc

Egyptian - North African belt,
Cairo-Capetown belt


While the West African transregional corridor got lagos - benin-lome - Accra - Abidjan - Bamako - Dakar - fez, casablanca corridor,
Just like the coastal line will be linking Cameroun,

a wealthy nation in the midst /surrounded by poor nations is a ticking time bomb, and an ill wind that will blow no one no good, so you got to be concerned about the happenings in your neighborhood.

So the construction of these lines are the manifestation of masterplan which is expected to be a consolidation of regional economic integration,

These rail lines have critical structural economic implications, hence they are arteries carrying agro-belt, with transit points, supply points, demand points, backward integration points etc,

This will aid self sufficiency, surplus for export, refrigerated coaches for agricultural supply chain, To mitigate wastages from spoilage of perishables,fastidious movement transportation logistics to help ease of business, and increase in productivity.

economic integration is key,
The waters flowing into the tributaries feeding our hydroelectric dams like Mambila, kashimbila, zungeru, shiroro, kainji, jebba, gurara, Lower usman, argungu, benue, bosso, niger, have their collections and sources and flows from our neighbors from central African region, West African region,

Some made compromises and didn't dam their water bodies, if they had, we won't have enough flow to generate our hydroelectric power supply, no matter how we contest it, the gas sources can't be enough to power the whole country, because we still depend heavily on crude export for forex, coupled with the uncertain future and fluctuating features of non-renewables in the global economic market.


In essence the purposefulness of economic integration mustn't be defeated, in as much as eyebrows were raised on the Nigerian - niger rail line, and the daura monarch has sphere of jurisdiction extending to niger, however, we could have joint venture while the Blueprint of the masterplan is undergoing implementation,


Just like the transborder communities are replete on the western flank between Nigeria and Benin(shaki cotounou, seme) , and Cameroonian - nigerian flank etc,

It will be wonderful seeing a linkage with our neighbors in the sub region,both northern/ eastern flank, and Western/coastal/southern flank,
as for funding we could decide to do our bit solely/separately , while our neighbors equally do theirs, with a consideration of synergy of linkage of the lines to make up the regional corridor, or we all do it jointly when works reaches border communities of the separate countries, which ever way, it's a win win.
My major distaste on these projects is the periodization of their execution, time-lapse, intermittent delays, beurocratic impediments, etc

The single currency is still on the board, though the extent of its practicality, it the bone of contention.

Couple of weeks ago, Issues were raised on uniform aviation industry for the continent, still we are still contemplating,

Also transregional road projects just like that of railway is currently on course,

The green belt project is equally on course, to help mitigate the encroachment of desertification in the sub-saharan region,

Same goes for trans-atlantic/saharan gas pipeline project

While the recharging of Lake Chad is long overdue,

China is the new Frontier for neo-African upsurge of development in this millenia, They helping in dismantling barriers to transregional economic growth in the African continental sphere, Seaports River ports Airports, Rail ways Roads, Water bridges, Hydroelectric dams, Industrial Parks, learning institutions etc

Nonetheless, Africa got to be wary of its sino developmental loans,
Those loans and multilateral cooperation with her, hence they don't turn to trojan horse gift,

After funding the execution of new headquarters of AU, there are insinuations of China eavesdropping on the happenings within the edifice,
They also willing to fund the new Ecowas headquarters,.......

Hahaha....Una call yourselves the giant of Africa.

Me I say; Ok Mr. giant stop crawling and start walking. Una refuse and want to go back to being carried like a helpless baby....shame.

Nigeria has the largest market in Africa with low industrial and manufacturing base and high cost of production.
Other big economy in Africa that signed the agreement e.g. Morrocco, Egypt, SA are doing fine industrially and are actually waiting to leverage on the agreement to penetrate Nigeria large market. This is the fear express by the struggling Nigeria manufacturers, which prevented the FG from signing the agreement at least for now.

horsepower101:
Hahaha....Una call yourselves the giant of Africa.

Me I say; Ok Mr. giant stop crawling and start walking. Una refuse and want to go back to being carried like a helpless baby....shame.

Stop talking rubbish. Do you even understand the reason behind Nigeria's reluctance to sign? Only good to open your big mouth to criticise, including what you don't know anything about.

Blue3k:
Not surprised considering Nigeria's protectionist attitude. Let's see if they change their minds later.

But that is the only way we can develop, my brother. If we allow cheap African goods to flood our markets - and you can bet they will ALL be targeting our 200 million - strong market first before any other one - that will increase unemployment and reduce our manufacturing output. This, coming at a time the oil price drop has compelled us to focus on diversification.

So FG is saying, ''Wait. Let us see what this deal is saying first before we go and sign ourselves into wahala''. I think they are being very competent there, and it shows some people are thinking in that Aso Rock.

Buhari is Purnishing Nigerians thinking he is dealing mercilessly with the Igbos.
The whole script is targeted against the Igbos because they are the engene of comerce of the country.

Anything Buhari sees that will make the lgbos grow ,he will destroy. We know what he is doing. But God in his infinit mercy always make the Igbos shine.

Can anyone justify this behaviour? This is a shithole country.