South Africa must take on a leadership role in the implementation of the AfCFTA
“Between the first and the twelfth centuries, extraordinary events happened in Africa, events that transformed not just the history of the continent, but the history of the world.” – Henry Louis Gates, Jr. in Africa’s Great Civilizations
The economic foundations of the African Continent and its people, the manner in which ancient and medieval African civilizations developed cultural and commercial ties with other parts of Africa and the world, and the economic evolution of the African Continent are not familiar topics for most people, including Africans. Historian Toby Green writes in his book A Fistful of Shells that “For decades, outside a small circle of passionate dedicated scholars, these African pasts have suffered neglect. Yet they reveal ancient civilizations and a history whose relevance is absolutely contemporary”.
Indeed, ancient Egypt, Aksum, Carthage and Kush are said to have the same level of commercial prowess as the (better known) ancient Romans and Greeks and were even pioneers and innovators of commerce and trade in many ways. Agriculture thrived in the Nile Valley and crops were also exchanged. In medieval times, and in pre-colonial Africa, the Kingdoms of Ghana, Timbuktu and Mapungubwe were trading hubs for regional and international trade, including with India and China. In a 2017 essay titled History of African Trade(Commissioned by the President of Afreximbank, Dr Benedict Oramah), Harvard University’s Dr. Emmanuel Akyeapongreflects on the pre-1652regional trade networks across South Africa between the Khoisan in the south west, Batswana in the north and the AmaXhosa in the south east. Post-colonial Africa also became a proponent of regional integration with a desire to industrialize and correct perverse patterns of trade which perpetuated the Continent’s dependency on the developed world.
The success of the recently held 2ndIntra-AfricaTrade Fair (IATF), is evidence that Africa has now come full circle in its economic history. The event brought together leaders of industry from 69 countries (46 African and 23 Non-African) and seven African Heads of State and Government. Small and medium enterprises also showcased their products to throngs of visitors and buyers. Estimates are that, daily, in the order of 12 000 people visited the Durban International Convention Centre in KwaZulu Natal, with many participating virtually. Upwards of 1161 companies or entities showcased their wares and services. For the first time the youth and the creative industries of our continent participated in this majestic spectacle.
Moreover, the IATF proved to be a powerful uniting force across the Continent, in the face of an insidious pandemic that continues to divide the world into north and south, rich and poor and vaccinated and unvaccinated. The IATF has shown the world that Africa need no longer remain on the periphery of the global trading system, it can and will industrialise and diversify its exports, break out of existing trade patterns and seek its own unique development path.
All efforts were made to pursue enhanced connectivity and trade between our peoples and to revive the commercial culture and market economies of ancient and medieval Africa which were hallmarks of African civilization. At the opening of the Fair, President Cyril Ramaphosa aptly said “It is our expectation that this Intra-African Trade Fair will further cement its position as Africa’s premier trade platform, where African manufacturers can promote and sell more ‘Made in Africa’ goods to one another. This is critical if we are to change the distorted trade relationship that exists between African countries and the rest of the world.”
The IATF Advisory Council, chaired by former President Olusegun Obasanjo, reported that deals to the value of USD42.1 billion in trade and investment were concluded. This is significantly above the USD32 billion worth of deals that were signed during the 1st installment of the IATF that was held in Cairo, Egypt in 2018.
The event also comes at a critical juncture in South Africa’s leadership role on the African Continent, particularly given President Ramaphosa’s priority focus on economic diplomacy in and with Africa.
At the core of South Africa’s foreign policy, sits Africa; and the country’s leaders have, since 1994, accepted that its success is inextricably linked to that of the Continent. A democratic South Africa was therefore at the forefront of a plethora of African ideational and institutional initiatives, whose aim was to strategically reposition the African continent in the callous global geo-political system.
One such initiative was the transmutation of the Organisation of African Unity into the African Union (AU) on 9 July 2002 in the City of Durban. In spite of the challenges that still remain, the AU has now evolved into an organization that Africans ought to be proud of. South Africa was also at the centre of other landmark initiatives such as, the NEPAD and the African Peer Review Mechanism, whose successes have defined Africa’s socio-economic and democratic trajectory.
The hosting of the IATF– organized by the African Export-Import Bank (Afreximbank), the AU and the African Continental Free Trade Area (AfCFTA) Secretariat–from 15-21 November 2021 in Durban, was a continuation of South Africa’s tradition of outstanding service to the people of Africa. The 2nd installment of the IATF was scheduled to take place in Kigali, Rwanda but for unforeseen reasons, just three months before the event, with all the limitations brought about by the stubborn Covid-19 pandemic and its variant tentacles, the South African government agreed to host this historical exhibition in the birthplace of the AU.
The tremendous success of the IATF was no doubt a nostalgic moment for South Africans who have witnessed the evolution of our leadership in the Continent’s affairs, with some observers arguing that South Africa’s influence in Africa is in decline. It could well be true that because of domestic challenges, South Africa’s focus has not been as concentrated when it comes to the African Agenda and the renaissance of the Continent that is consistently being deferred. Unfortunately, whilst the country retreats, leaving a vacuum, other players have occupied the space and dictated the agenda, lending credence to the ancient philosopher, Aristotle’s observation that “nature abhors a vacuum”.
As the most industrialized country with the most sophisticated economy in Africa, South Africa has no choice but to take the lead – in concert with other economic powerhouses like Nigeria and Egypt – in ensuring the successful implementation of the AfCTFA. South Africa should also support its son, Wamkele Mene, the Secretary-General of the AfCTFA, with the difficult task that the AU has placed on his shoulders. The South Africa that has always been known for “punching above its weight” and leading “a realist paradigm from the South” must now live up to the expectations of many in Africa and beyond.
Therefore, the country has to use its resources and capacity to ensure that trade interconnectedness is achieved and intra-African value chains are developed. And fast. The World Bank reports that AfCTFA, “will create the largest free trade area in the world … connect(ing) 1.3 billion people across 55 countries with a combined GDP valued at USD43 trillion … with a potential to lift 30 million people out of extreme poverty … ”. It is encouraging that President Ramaphosa is currently embarking on a tour of a few West African countries including Ghana, the seat of the AfCFTA, with a view to consolidating political and economic relations as well as establishing new ones.
If Africa is to achieve THE AFRICA WE WANT, it is high time that countries like South Africa step up and ensure the actualization of such ideals as the Cape to Cairo project, an anchor out of which other economic opportunities could emerge. Nigeria and Egypt, as the other economic giants on the Continent, equally have an obligation to put their shoulders to the wheel and address Africa’s current developmental challenges through the strategic implementation of the AfCFTA and other progressive initiatives. The Africa We Want can certainly be Made in Africa, By Africa and For Africans.
Extraordinary events are once again happening on the African Continent, with the potential to effect real structural transformation in the economies of African countries, and indeed to trigger strategic shifts in the global economic system. This is without doubt the “raging hurricane against which the old order cannot stand” that the great Pan-Africanist Kwame Nkrumah wrote about. The journey is therefore bound to be filled with all manner of challenges and obstacles, but working together, we will certainly be triumphant and, the success of the recently held IATF hosted by South Africa has demonstrated that it is indeed possible. It is now time for South Africa to lead!
Ntsiki J Mashimbye
Ambassador of South Africa to Egypt
3 December 2021
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