African Union

Evaluating the Dispute Settlement Mechanism of the African Continental Free Trade Agreement

Even setting aside funding issues, the failure to creatively blend the dispute settlement mechanisms that already exist at the sub-regional level with what has worked with disputes in the global trading system is perhaps the biggest handicap the new dispute settlement system established by the AfCFTA is likely to suffer. There is certainly no harm in trying to out this system, but because most of the experience and expertise in handling trade disputes and matters has been at the sub-regional level, the new AfCFTA Dispute Resolution Mechanism has a lot to learn from the sub-regional level.

Ethiopia and Regional Integration

Because Ethiopia is the headquarters of the African Union its role on regional integration is usually taken as given. It is usually assumed that the state has and is making efforts to integrate with the continent. In this essay, I contend that Ethiopia’s historical engagement with regional integration has been at best passive and vague. On the contrary, its focus on regional integration at the moment seems different and active.

Accommodating informality in the African Continental Free Trade Area: Some basics and challenges

A response to informality includes the suggestion that policy makers should formalize informal entities and activities. This suggestion holds that, responding to informality in such a way will ultimately help create better jobs, improve productivity and reduce poverty. But then, the question again arises at this point: is formalization the optimal solution? Shouldn’t the focus in the short-term rather be to improve conditions for informal sector actors and the spaces in which they operate than formalize? These are some of the broad challenges facing Africa, the AU and the governments of respective member states and other stakeholders as Africa proceeds with the AfCFTA.

Expanding intra-African Trade through Market Governance Tools

The creation of a single continental unit is meant to allow the formation of larger economies of scale and enhance the region’s specialization in agricultural and industrial production. However, the reduction or even elimination of tariffs will not be enough to reach the AU’s objective of doubling the existing level of intra-African trade, as significant and continent-specific challenges lie ahead.

Oasis or Mirage? Intra-African Investments in Oil and Metals

Hopefully, a sweltering sun in Africa has not caused AU experts to see mirages of intra-regional finance. Providing for intra-African investments in the current context of the continent is like offering classes on how to make planes to students living in countries that cannot yet make cars: Virtually all the real action takes place elsewhere. Instead of negotiating a chapter on investment, delegates must prioritize a chapter on how AU members can build their capacity to engage in deeper economic relations, especially on how to leverage FDIs in natural resources to develop adequate infrastructure for intra-African investment.

Mainstreaming Social Concerns into the AfCFTA Negotiation Process

This low level of priority accorded to the social impact of the AfCTA contradicts the core values and aspirations of the African Union (AU). Most notably Article 3 (g) and 4 (c), (I), (m), and (n) of the AU Constitutive Act which all envisage an African Union that is democratic, inclusive, open to the participation of stakeholders, and sensitive to social concerns in the pursuit of economic development. However, going by what transpired prior to Kigali, it appears that priority was not accorded to these concerns mentioned above. More importantly, the recent hiccups experienced at the Kigali Summit are evidence that dialoguing with a broad range of stakeholders about the impact of trade on social structures is vital to the attainment of legitimate and effective economic agreements in Africa.