Tio Erastus Nakasole
I was in my elementary school years when one of my history school teachers exposed to me one of the Greatest Conferences (the Berlin Conference of 1884-1885).
This has not only changed my viewpoint on how Africa was at the dinner table, but it conscripted me to stage partially the basis of this piece. I strongly believe that to create an African economy of good hope, intercontinental trade and investment are the prerequisites. This means a nascent of goods and service-free trade across the nation. One of the fathers of Africa, Kwame Nkrumah, envisaged this when he said in 1977, “We have in Africa everything necessary to become a powerful, modern and industrialised continent. Far from having inadequate resources, Africa is probably better equipped for industrialisation than almost any other region in the world”.
At least, his forecast was so visionary in terms of what will make us stronger – not only politically but economically, of which trade is not an exemption.
Trade equivocal
Undoubtedly, united we stand, divided we fall. Given the plethora of the subjects in bracket by our lawmakers, one must ask a question: What are we trying to achieve, how are we going to get there and when?
Economically, the adoption of domestic trade in the African context will collectively increase intra-African exports and boost the country’s export-led manufacturing and service capabilities.
Brexit lesson
Britain tried to retrogress the decision of not being part of the European Union due to an imbalance of trade, sovereignty, immigration, the economy and anti-establishment politics among various other influences. In addition, Britain is one of the world’s strongest countries with the strongest pound. Despite its strongest countries, another member-less key player state of the EU leapfrogged its state due to a non-conducive trade agreement pertaining to trade within Europe, direct investment, liberation and regulation, industrial policy, immigration, financial services and uncertainty.
The hamstring relationship between macro-prudential and monetary policies that most Africans created remains faced with the redundancy problem of currency created out of thin air.
At the onset, Africa had more different currencies – some that were not convertible, and this made our trade even more complicated.
Hijacking factors
Given the contemporary tailwind and headwind of the African economy, there are several factors that should not be paid lip service when it comes to member states. They said it is difficult not to be honest when you are exposed. Firstly, no country would be willing to relinquish its competitive advantage in terms of trade into a tragedy or at the messy of other free riders. Some African countries, such as the Democratic Republic of Congo, South Sudan, Sudan and Niger are in unrest civil conflict. Peace should prevail first to avoid destabilising the whole market.
Disjoint economic bloc
One previously said that if you cannot be able to solve the small portion, then it will be so awkward to solve the amalgamation of different portions. Africa, with five sub-regions – Eastern Africa, Western Africa, Northern Africa, Middle Africa and Southern Africa – is governing itself with over six economic Bloc, namely: SADEC, ECOWAS, EAC, AMU, COMESA and CFTA.
The population is currently chasing 1.4 billion, taking 17.89% of the total world population. Despite how diminutive the population seems, the protracted period of not integrating those economic blocs into one is evident, since their inception due to the long-serving leaders unwilling to relinquish their power and position at regional and national levels into one.
Regions being led by intergenerational leaders find it difficult to find common ground in terms of agreement. African countries do not need to be active members but to become a playmaker of the regional economic bloc, leveraging on comparative advantages trade and re-engineering itself toward addressing supply-side constraints through incentives to stimulate and boost productive activities at home.
African Continental Trade Agreement should not be used as a tool of unit only, nor driven by the idealism of ‘voluntarism’ but by the common interest of ‘contribution and value addition’ into the African market, where each state plays a part and becomes better off.
* Tio Erastus Nakasole is a final year MBA student at the NUST. He holds an Honours degree in Economics and is currently serving as the Sales and Service Manager at HiFi Corporation Namibia. The views expressed do not represent those of his employer. – theoerastus@gmail.com