16.09.2024
As the continent of Africa meet in Kigali, Rwanda from 9th to 11th October, 2024 for the “Biashara Africa” organised by the African Continent Free Trade Area (AfCFTA) Secretariat, there was need to rigorously assess the influence of culture and application of domestic policies on investment in the member states. This is because the impact of perverse culture and suspected unfair application of domestic policies tend to frustrate or frighten local investors from either expanding homogeneously or diversifying heterogeneously, Dr. Kelvin Kamayoyo, Zambian Economist & Technical Advisor for African Rivers.
Myriad examples as they may be, the recent disruptions of smooth start up operations of the $20 billion Dangote Oil refinery, built by Africa’s richest man Aliko Dangote on the outskirts of Lagos with capacity to produce 650,000 barrels per day capable of satisfying Nigeria’s national fuel consumption needs and exporting to the other West African neighbouring countries, is Africa’s jubilee investment nightmare. This was an evocative “litmus test” on how success of the African local content theory has remained far-fetched at least in the last 50 years. Such delays could induce investor fatigue. lt could also be cited as acute structural barriers characterised by instantaneous superfluous domestic regulatory requirements that draw a parallel line from the desired policy facilitation role in a perceived nondiscriminatory investment environment. Undeniably, African countries urgently need to address these non-progressive practices in their economies, if the harmonised regional investment acquis frameworks are to succeed in attracting local investors.
The African Continental Free Trade Area Secretariat is hosting Biashara Afrika 2024 under the theme: “Dare to Invent the Future of the AfCFTA.” Additionally, the Forum aims to unite key stakeholders, including Heads of State, CEOs, institutional investors, women and youth entrepreneurs, and global business leaders. The topics for discussion will endeavour to focus on sectors such as pharmaceuticals, transport & logistics, automotive, agriculture & agri-business, and digital technologies. The Forum sampling of the audience and participants is precise and representative, however, the topics for discussion may need to be buttressed by the inclusion of the role of climate science, energy and water security in strengthening the continent’s economic resilience and promoting sustainable development for all.
Another silent but vital cross-cutting issue is the underlining low levels of Africa’s intra-trade at each production level of economic activities thus, primary and secondary levels. Notwithstanding, African countries are unable to exchange primary commodities with eachother because they lack appropriate technology to add value or process into finished goods. Further, African countries only produce miniature secondary or finished products which are insufficient to warrant them claim capacity to increase and sustain long term intra-trade.
The theme for the Biashara Afrika 2024 is good and relevant but over 5 years down the road, ACFTA is still sluggish in transforming African economies from being predominantly consumers to industrial producers with inward-looking investment at the centre. For instance, in the last 50 years the small and medium businesses or SMEs in Africa have been experiencing stunt growth while the retail market has been thriving largely because it plays a pivotal role in fostering Africa’s consumption industry. To ameliorate this unfortunate paradigm, the AfCFTA need to play a significant role in changing this situation that continue to ravage almost all African economies and thereby perpetuating the prevalence of high poverty levels among the local communities.
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