African countries continue to make strides in finalising several outstanding issues on the AfCFTA. In accordance with the AU’s vision to be a socio-economically well-integrated continent, this important flagship project of the AU’s framework for structural transformation – Agenda 2063 – is expected to uplift millions of the continent’s citizens out of poverty by boosting intra-Africa trade in goods and services, creating economic opportunities domestically and a platform for the expansion of intra-African value chains, and by reducing barriers to the movement of capital.
They all have one thing in common: successful outcomes hinge on the ease with which Africans are able to cross national borders, be it for economic reasons, to share ideas, to enable greater social cohesion, as entrepreneurs, or to provide and obtain services outside of their home country. The inherent sharing of services in productive activities and trade is often vastly underestimated, yet remains a critical component. In turn, nearly all services contain a human element, and for the most part, involve the movement of persons across borders in the delivery or sourcing of such services. The freedom to move is thus a key determinant of an endogenous stimulus for development towards the ultimate success of the AfCFTA in achieving its goals and objectives.
Bringing together 55 countries under one preferential trade umbrella, whose disciplines extend beyond trade in goods and services but also cover investment, digital trade, women and youth in trade, competition, and intellectual property rights, has been a momentous undertaking. Ultimately, traders in every country will be in a position to trade on a preferential basis with every other market and country on the continent. While work remains to be done, several important initiatives ensure that positive outcomes are already felt: the Guided Trade Initiative (GTI), with an increasing number of participating countries, has allowed commercially meaningful trade under the AfCFTA to begin; an online reporting and monitoring system helps address and eliminate non-tariff barriers; and the Pan-African Payment and Settlement System (PAPSS) facilitates efficient cross-border payments in different currencies in real time. Accordingly, civil registration and interoperable systems including digitised legal identity play a crucial role in easing movements and bolstering cross-border trade.
This year’s AVOI report demonstrates that the only constant is change: several developments on visa openness suggest positive policy trajectory and political will to ease the cross-border movement of persons. However, several countries remain reluctant, and the emerging success stories will hopefully contribute to further positive momentum overall. There remains a long way to go, and much room for progress on visa openness to translate into deeper and more progressive commitments on facilitating the movement of businesspersons and service providers across Africa’s borders.
Let us embrace the opportunities before us.
H.E. Ambassador Minata Samate Cessouma Commissioner for Health, Humanitarian Affairs and Social Development African Union Commission
