Africa’s free trade dream is getting a reality check

Lagos, Nigeria

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Nigeria’s government has extended a land border closure with neighbouring countries until at least the end of January 2020. Officially aimed at cracking down on cross-border smuggling, partial restrictions were first imposed at the border with Benin in August, with a full and indefinite closure confirmed in October.

The shutdown continues Nigeria’s ambivalent relationship with the African Continental Free Trade Agreement (AfCFTA). It comes just three months after the country signed up to the deal, following a year long delay due to reservations about its benefits.

Having Africa’s biggest economy on board was seen as an important milestone for the AfCFTA. Trading under the agreement is due to start in July 2020, with the goal of transforming regional trade by unifying Africa’s 54 countries into a single market, worth up to $3 trillion.

It’s a tall order.

In addition to the complex task of trade negotiations, issues such as insufficient infrastructure, a lack of human capital, and poor trade facilitation must be overcome for meaningful implementation.

Without strong and consistent political support – especially in big economies – it’s hard to see this happening. Nigeria’s decision to close its borders, showing little regard for the impact on regional trade, shows how fleeting this can be.

It’s a reminder that the hard work of realising Africa’s free trade dream is just starting.

This report reflects the views of the author alone, not those of How we made it in Africa.


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