Political and Economic Perspectives on the AfCFTA: A Future for African Integration

Abstract

The inauguration of the African Continental Free Trade Area (AfCFTA) signified a pivotal moment for Africa's economic and political integration, establishing a new paradigm for reshaping trade relations and reinforcing regional cooperation in an era of rapid globalization. This theoretical article aims to analyze the impact and significance of the AfCFTA within the context of globalization and African integration, assessing its political and economic implications through a comprehensive exploration of the challenges and opportunities it presents.

The objective of this article is to examine how the AfCFTA, as a pan-African initiative, can boost intra-African trade, foster sustainable economic growth, and strengthen political stability across the continent. The study adopts a theoretical methodology based on the analysis of existing data, economic projections, and trade policies to explore the multifaceted dimensions of the AfCFTA.

Findings indicate that the AfCFTA holds the potential to redefine the African economic landscape by facilitating trade, harmonizing regulations, and creating a single market for goods and services. For instance, according to the World Bank, the full implementation of the AfCFTA could increase Africa's real income by 7% or $450 billion by 2035. However, achieving these objectives faces significant challenges, including the need for adequate infrastructure, effective governance, and political coordination among member states.

The article highlights the practical implications of the AfCFTA for policymakers, business communities, and financial institutions, emphasizing the importance of strategic engagement and coordinated implementation. Furthermore, it underscores the originality and value of the AfCFTA as a unique initiative for regional economic integration, proposing recommendations to overcome hurdles and maximize the benefits of integration.

Keywords: AfCFTA, African integration, globalization, Economic development, trade policy

JEL Classification: F15, O55, P45

Paper type: Theoretical Research