Intra-African Trade

Many mainstream discussions on African regional integration focus on the role of the executive, bureaucrats and state institutions (hereafter referred to as state-actors) in facilitating regional integration. While state-actors play crucial roles in enabling regional integration from a “top-down” perspective, concentration on these state-actors inadvertently means that less focus is paid to the non-state actors involved in the process. This article explains that while state-actors do facilitate regional integration from a top-down perspective, non-state actors have the potential to (and in some cases, already do) facilitate regional integration using a “bottom-up” approach.

For the AfCFTA to succeed will require more than its regulatory framework; a supporting framework is also required and this is found in what Douglass North has termed “mental models”. Mental models are the necessary norms and beliefs of policy makers - their perceptions of the world around them.

This article contends that premised on being Africa’s major trading partners, economies such as the US, the EU, and China are likely to experience trade diversion when the AfCFTA comes into force. As a result of such potential trade diversion, the implementation of the AfCFTA could be hindered. It is only by addressing the interests of these economies that AfCFTA will foreclose the possibility of a “crisis of implementation”.