Are the best practices that African countries may consider, both from regional and experiences from other parts of the world in the implementation of AfCFTA?

The African Development Bank’s 2020 African Economic Outlook had projected 3.9% growth for the continent in 2020, and 4.1% in 2021 but  due to the onslaught of Covid-19 and other factors, the UN  Economic Commission for Africa’s recent projections for 2020 shows Africa will likely have 1.8% growth, with its oil-exporting countries Nigeria, Angola, Gabon, the Democratic Republic of the Congo (DRC) and Algeria, hardest hit. Under the present conditions, it may not be wise to set new deadlines for when trade under AfCFTA rules will commence.

In my view, Africa needs to do more internally by the development of regional value chains that lead bigger industries obtaining their supplies from smaller industries across Africa’s borders. From the Business Day, a proposal for AfCFTA to learn from is Asia as it offers some lessons in this regard. Japan has managed to survive at least three great restorations over the last 150 years with the country's recovery and added growth being found to be a combination of governance and a relentless attitude

Recent analysis by IMANI Development for the Southern African Development Community (SADC) and Gesellschaft für Internationale Zusammenarbeit (GIZ) also endeavor to offer some pointers on the sorts of compliance mechanisms that could be appropriate for the AfCFTA with the European Union (EU) system of compliance mechanisms as a benchmark which Africa can borrow a leaf from

 In addition, African countries can learn from the EU's internal market economy, the EU had discouraged to large extent overregulation since it stifles business. Good regulatory practices - and in particular “objective-based” regulations, resulting in an optimal mix, that ensures the achievement of regulatory objectives and at the same time reinforces competitiveness.

 However, Africa should learn that there should be a balance between standards and or regulatory requirements. As tariff barriers decline worldwide, technical barriers to trade have emerged as one of the major obstacles to an efficient and transparent trading system, despite the fact that the underlying objectives for safety and protection of the individual are the same or similar in each country.  As we strive to promote trade in Africa, a better understanding of standardisation of policies becomes very critical and highly relevant.

If the AfCFTA is to deliver on its promises it must take lessons from the region trade blocs like EAC, SADC and ECOWAS. The AfCFTA is governed by 12 core principles, of which some are;reservation of the acquis, RECs’ FTAs as building blocs for the AfCFTA, variable geometry,  Best practices in the RECs, in the State Parties and International Conventions binding the African Union and Driven by Member States of the African Union among others. These principles generally aim at reassuring member-states that the negotiations will build and improve on the achievements (or ‘acquis’) of existing FTAs, and not reverse what had been agreed previously (ECA et al., 2019). African countries must cooperate to establish and maintain an institutional framework for the implementation and administration of the AfCFTA. Most African states fully understand the best practices and challenges to integration through their overlapping memberships to different RECs. Where there is political will, African States can improve coordination at various levels of the integration machinery—between RECs, between RECs and national governments, between different government departments, and between the government and the private sector to attract the business community to trade formerly and invest in development of sustainable   value chains.

Four of the eight officially recognized RECs by the AU have achieved varying progress on regional integration in terms of 5 dimensions; trade integration, regional infrastructure, productive integration, free movement of people and financial and macroeconomic integration. Best practices in each of these RECs are perfect to be applied to make the AfCFTA implementation work. The EAC is the best performer among Africa’s economic blocs with an average trade intensity of 20.1% while ECOWAS leads on ‘open reciprocity’ (i.e. no visa required for African nationals), followed by EAC. Some RECS in West Africa, Central Africa and Common Monetary Area achieved deeper integration through macroeconomic convergence.The AfCFTA involves consolidation of regional FTAs (such as the Tripartite FTA) into the continental FTA as a key instrument in the AU’s Action Plan on Boosting Intra African Trade (BIAT).

For instance, the Rules of Trade Origin remained an outstanding matter in phase 1 of the AfCFTA which need to be harmonized. Africa’s RECs have taken different approaches to rules of origin. COMESA only applies a general rule, requiring that 35 percent of value addition must take place within a COMESA country. SADC on the other hand also applies product-specific rules of origin. These rules will stay in place for intra-REC trade. Since product-specific rules of origin are typically more difficult to meet compared to a general rule, for products with AfCFTA product-specific rules of origin, COMESA –based producers  will not be as competitive to their SADC counterparts. It is important that the AfCFTA trade rules of origin build upon the rules of origin already in RECs as much as possible to prevent disruption of supply chains, high transaction costs, and reduction in competitiveness.

African states must design and implement effective national AfCFTA strategies to take full advantage of the AfCFTA. ARIA IX considers five such measures along an export path: investment, production, trade facilitation, trade-related infrastructure and import defense. African governments must develop and implement national investment plans; set up investment promotion agencies; partner with other member-countries to learn from their experiences; and collaborate with specialized development organizations for support and guidance.

Any effort at capacity development must pay due attention to Africa’s under-exploited services sector. In this, the AU’s Services Sector Development Programme (SSDP), a blueprint for the development of efficient and internationally competitive service sectors in Africa, could be a useful tool. The SSDP aims to increase services exports, boost employment in the service sector, and improve Africa’s attractiveness to foreign direct investment (ECA et al., 2019). It helps AU member-states liberalize services — unilaterally, through the RECs or at the level of the AfCFTA — and strengthen regulatory frameworks for key service sectors. The SSDP can be a good complement to the Protocol on Trade in Services, and can help boost infra-African services trade in line with the trade policy objectives set out in the BIAT Action Plan.

@annemukunyam totally agree with you

@gracek very true

@annemukunyam I totally agree with you.

@margaretnagujja that is very true,  I would add that mutual recognition of testing standards is highly recommended,  whereby each country retains the full liberty to set its own product and production standards. However, each country is entrusted with testing products intended for export in its own territory and prior to shipment. The importing country will accept the products from the partner without any additional testing or administrative procedures.

@knkai that is very correct, there is a dire need for Africa to develop its SMEs sector.

So far AfCFTA, is the biggest market in the world after WTO, I suppose.

The purpose of its establishment is evident, but as the process continues, I have one, two, three things to advise and which if they are heeded,may improve its development!!

1. African Countries politics need to be harmonised. Why? They need to harmonise their politics to have commonalities in issues of AfCFTA because politics decides everything, eg. The issue of COVID 19, has taught us a lesson. Every country took her own initiative, but one would expect joint efforts regarding the pandemic. Absence of unity in many issues due to political differencies will continue to cost our continent.

2. Harmonization of legal framework. I know, there is a treaty establishing the FTA and accompanying protocols are clear on what should be done by member States. You will all agree with me that following each member country to have her own legal frameworks, it has been difficult to implement what is agreed under AfCFTA legal framework in favour of member's own laws.

3. There is no enforcement machinery. No African Police to  enforce what is being agreed. I suppose there would be penalties which may result into sanctions and similar exemplary penalties. But what is being agreed should be followed by all members. That will bring about discipline in implementing the AfCFTA.

Let me end up here for now.

In my opinion the challenges Africa faces are similar to all it countries ranging political, willingness and change of attitude, technical, data availability and resources. Let me briefly highlight some of them below:

A. Political

• Policies, regulation – this is very key without government prioritizing and including the development and enactment of policies and regulations relating to SPS it will always be challenging in implementing SPS standards and strengthening of relevant regulating institutions

• Enforcement of laws, protocols and standards – Only the political wing of government can ensure fully enforcement of all SPS laws, bye- laws, protocols and standards by working closing with and effectively monitoring regulating institutions and authorities concern be held accountable for compromising.

• Public and private partnership- this a key aspect in governance both private and public institutions should be involved in all stages of the SPS value chain and ensure swift implementation of all related SPS standards and protocols
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• Political support and will – The strong and continuous support from the political wing of government is important in prioritizing SPS issues in the Africa Continent.

B. Willingness and change of attitude

• As we seek the willingness from our political leaders it is also vital that the administrative, technical and judiciary wing are also willing to support this goal. Change of attitude of us all especially the exporters, importers and regulating authorities is of essence to effectively upgrade our SPS system in the continent.
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• Our regional blocs and we the technical personnel must have the same vision and level of willingness and determination towards SPS related issues. We should put away our pride and self-benefits and think of Africa as a whole.

• awareness raising- we should all be involve in sensitizing the public, exporters, importers, policy makers and our colleagues on the value of SPS related issues and what as individual, country, sub-region and continent stand to lose when the aspect of SPS is neglected; what would be gained when it is priorities.

C. Technical

1. Internet facility- this is a must and the internet system in Africa need to be upgraded and improved upon on. It has been so weak and unstable, often not available in some major entering points and farms location and is a major barrier to trade facilitation. The world is now fully being digitized and we can’t afford as a continent be left out to operate within the manual system.
2. Technology- ICT system- There is need to develop and established new and upragded ICT systems to enable digital implementation of some of the SPS activities were it is necessarily required. Lack of ICT tools and equipment in public regulating institutions and entering point will affect the implementation of the AFTA.
3. Laboratories and testing facilities – No country can effective implement SPS standards and protocol with scientific justification, then it will be barrier to trade which is against WTO SPS principle. Thus government should ensure that their countries have the adequate fully equipped and functional testing facilities and laboratories. This will not only protect the countries exported products to meet international requirements and standards but also prevent the introduction of invasive pest and diseases into the country.
4. SOP and other technical documents – It very vital to harmonise SPS Standard of operating procedure or protocol within the various blocs and ensure that there are available standardize SPS SOPs and technical documents this will also guarantee and safeguard all countries as our borders are very porous, so I normally say there are no borders in Africa.

D. Good Agriculture Practice -is paramount and should be promoted by all countries and all players along the agricultural value chain should be encouraged to implement GAP. There should be a harmonized GAP framework and system for all key export crops and livestock’s in Africa so that is gives uniformity between countries and also confirm that the same quality of agricultural products are being traded. It will also contribute greatly towards trade facilitation in term of money, time and resources utilize. SPS inspection starts from the procurement of the seeds or planting materials down to marketing until it reaches to the consumer.

E. Resources

. Financial resources – is a key tool to be able to implement SPS standards and protocols. Our governments need to allocate funds to the relevant regulating institutions and not depending solely on funding support from our development partners. Regulating institutions should ensure that their fees being charged are not cumbersome but relative low in order not to make trade costly.

. human capacity, technical expertise – This is area has a serious challenge as mostly sine the institutions concerned salaries are low most experts are moving to the private sectors or project. In some countries government are yet to recruit officers within the relevant institutions. A deliberate effort need to be taken to build the capacity of all technical officers both in the private and public sectors. Technical experts need to be encouraged and recognize within our countries and the Africa Continent as a whole.

F. Data availability – Data is an essential part of SPS and valid requirement when trading with other countries. It is a must for all countries to have an effective and functional updated database system for the purpose of efficient traceability, transparency and trade facilitation. This as aspect is missing if not all but part of it in all Africa Countries. Most International markets are requesting for a traceability and database system.

 G. Collaboration and cooperation between regulatory authorities/ institutions- In Africa Countries one major challenge is when regulating institutions see themselves as rivals, expert having the self-mind perception. This has contributed negatively towards slowing down trade facilitation. There is an essential need for all regulation institutions and regulators to see each other as one entity with a common goal and strengthening collaboration and coordination between them. This is also relevant in building an effective public and private partnership.

H. Regional blocs -need to coordinate and collaborate among themselves. SPS standards, protocols, action plan and activities need to be harmonized. Issues like MRL, certification, inspection guideline and tool, auditing tool, traceability and database system need to be harmonise among all Africa sub- regional blocs.

I. Research and information sharing- This is a major gap within the Africa region. There less priority and attention given to research. Most expert and scientist don’t like to share information. Countries often don’t share trade related data, information on stocks, quality and research skill to other country. This aspect if not address appropriately will definitely affects the AFTA implementation. It essential to strengthen centers of excellence within the region. This will enable us to carry out our own research and test what comes into our region.

J. Harmonise SPS tool, price control- It key to harmonise all SPS tools and ensure price control along the SPS various processes and stages within the countries.

Is the question pertains to general issues or specific to implementation of SPS? Anyway if it is pertaining to issues of implementation of SPS i agree with what has been raised by Raymonda Johnson. We can learn from the EU on how they managed to harmonize their standards through out the region. They even harmonized standards with EFTA countries like Norway, Switzerland, Iceland. On the specific steps to take it has been well highlighted by Raymonda. We need Political will, good regulatory framework, technical as well as financial resources 

It was observed that trade within the RECs was on-going for example in the EAC there has been improved trade than before. Sometimes, there have been complaints between the private sector importing and the farmers producing when it comes to export/import of sugar, fresh milk. etc between Uganda and Kenya because they affect the local market. However, if we are to promote the trade in the EAC, there is need to agree to this. Maybe if our countries agree that Kenya is a better producer of sugar, let them export to other countries while Uganda has surplus pineapples and the traders export to the neighboring countries. I heard that there was maize traded recently from South Africa which is SADC selling to EAC which is an achievement for the AfCFTA. And South Africa actually has been strict on the SPS, hence a better supplier than Ugandan maize which needs to be improved to achieve even the EAC quality standards.

We can copy from EU like what others have suggested. We see the Netherlands re-exporting flowers, fruits and vegetables to other EU countries. So long as the standards are right they don't have to be affected by the NTBs among their traders. They all agreed on the same standards and each country is complying to it. With us in Africa, we need to harmonize the standards so that the exporters do not have to re-test or re-fumigate maize in the importing country (the complaint was raised about the Tanzanian government). 

I agree with Anne about getting organised in the value chains, Fortunately, Kenya is so organised in the Cooperatives and we in Uganda need to strengthen our Cooperatives especially for marketing. The few Cooperatives that are organised in marketing milk and matooke in Western Uganda are actually feeding the different regions of the country. WE need to emulate Kenya and the Netherlands which have used the Cooperatives to grow their revenues year after year. 

I totally agree with Kelvin and Ann on the value chain and comparative and competitive advantage respectively, I wish to consider trends in specialization by becoming more diversified with respect to evolution of specialization over time  and also the  intra - industrial trade  which depends on product differentiation in a country.