5 minute read
Digital Trade is the Next Big Thing in Africa
MR. KINGSLEY IGHOBOR OF Africa Renewal (AR) interviewed Mr. Wamkele Mene, the recently appointed Secretary General of the
African Continental Free Trade Area Secretariat
(AfCFTA). Mr. Mene explains the way forward, how increased intra-African trade can boost economies post-COVID-19 and how digital trade will be next big thing on the continent.
AR: You have said that digital trade is the next big thing in Africa
Mene: Digital trade is possible through mobile phones. We know, for example, from the experiences of various countries across the African continent, that you can access distant markets using your mobile phone. So, the digital platforms are
already there. We also know that Africa has one of the fastest-growing penetrations of mobile subscribers. It is a question of leveraging all those technological innovations and advantages into a common platform for free trade in Africa, under the AfCFTA agreement.
In nations where women are most active and contribute signifi cantly to the economy there are examples of women who use digital solutions in informal trade. We seek to establish the requisite regulatory environment and architecture, through laws and digital platforms. The other area that is very important is customs authorities. We need to fi nd a way to digitize our customs capabilities such that they are seamless across the continent. It is going to take quite a lot of work, but I believe it’s possible. . AR: Do you have any plans to capture the
imaginations of young people, to bring them on board?
Mene: We are going to create a platform to engage young Africans, women in trade and small- and medium-sized enterprises in a dialogue to put this vision into practice. We don’t have all the answers. We want to hear from young Africans. We know that if you go to Kigali, you will fi nd young African software engineers at the forefront of innovation. These are the people that we want to bring into the fold of the agreement. We can create the appropriate environment for young Africans to benefi t. Our rule will be to establish the conducive environment for young Africans to leverage their ideas. This is especially important. We don’t have the answers to innovation, but we can create and establish regulatory frameworks within the context of the AfCFTA.
AR: How do you encourage countries to raise awareness among young people?
Mene: It’s going to be a joint effort between the Secretariat and individual countries. We take advocacy and awareness-raising seriously. The basic iterate of the agreement is only one month old, but we are already recruiting the best and the brightest Africans to ensure that we reach our mandate. We are going to engage each of the fi ve
regions of Africa through regional outreach and advocacy programs. We will work with national governments. And we will complement the efforts of national governments to raise awareness about the benefi ts of the agreement, as well as the potential risks, and advise African populations—
young people, women in trade—on how to take advantage of this unprecedented agreement. So, we are going to roll out a robust awarenessraising campaign in the fi ve regions, in a way that complements the efforts of individual governments.
AR: What’s your idea of success in the short and long terms?
Mene: In the short term, success is having an institution that is established and functions smoothly. Establishing a dispute settlement mechanism is going to be a particular challenge, because it signals to African investors that they should have confi dence in the market. If we can operationalize a credible mechanism, that will be a short-term success.
In the long term, we aim to reach our objectives and action plans in industrial development. We might have value chains in two or three priority sectors, especially in critical areas such as agroprocessing and automobiles. These are the areas that have a direct impact on job creation and economic growth in Africa. That, for me, would be a long-term success.
AR: How would you describe the impact of COVID-19 on AfCFTA so far?
Mene: We know that over 53% of Africa’s exports go to countries particularly in Europe, but those consumers are now suffering from the pandemic. That has had a subdued effect on our export markets. The services sector in Africa, especially travel and hospitality, is set to fall by between 20% and 30% this year. In general, the virus has had a devastating effect on Africa. We have to fi nd ways to mitigate the effects of the pandemic. But, for now, the primary focus should be on saving people’s lives.
AR: In event that the pandemic is protracted, what will you be doing specifi cally?
Mene: I am sure that the Heads of State will consider the fact that we are in an unprecedented crisis. They may discuss a delay to free trade. But I stress that it is entirely up to them. We are determined to continue working as soon as the physical conditions allow, or when we fi nd a virtual means of doing so.
We are exploring the possibility of negotiating using virtual means. I must stress that it’s an exploration at this point, because we are talking about very complicated negotiations with more than 300 people at a time. The technical feasibility question is what we are exploring right now. But, as I said, there are constraints for trade negotiations, even when you are in the same room: the four different languages of the African Union, the confi dentiality of the process, the different time zones of the African continent.
AR: You mentioned that the pandemic has the potential to decimate economies. How do you think you can regain momentum?
Mene: There are short- and long-term tools at our disposal. The fi rst short-term tool, from a trade policy standpoint, is that our heads of state agreed to establish trade corridors to enable the transit of what the Africa Centres for Disease Control and Prevention refers to as “essential goods,” or products that are necessary to combat the
