A history of african economic integration: the pursuit of african continental free trade area (ACfTRA)

Abstract

African nations have always traded with each other. The colonial period did not encourage the development of intra-African trade, which now stands at 17 percent. The pan-African movement pursued by Kwame Nkrumah, Jomo Kenyatta, Sedar Senghor, and Sekou Toure, laid the foundation for the future of African unity and the rise of economic integration. We now have African vision 2063, which seeks to encourage trade between African nations by 2063. Africa now seeks to enhance unity, and a few years ago, the African leaders signed the treaty for the launch of African Continental free trade area. This ambition, based on the original objectives of the African Union, since 1963 was a noble idea. Far from being achieved, out of 55 nations in Africa, 44 signed the treaty for free trade area, but ten countries opted not to sign, citing certain fears associated with free trade. The two giants, South Africa, and Nigeria were reluctant to open their borders for free trade yet they do robust trade with the USA, Europe, and China. Using the dependency paradigm, this chapter posits that despite almost sixty years since Ghana gained independence, there still mutual suspicions in the achievement of the ideals of pan-Africanism. Africa is still beholden to the former colonial powers, notably Britain and France, and of course USA and China, who continue to give Foreign Direct Investment and have trade agreements such as AGOA with African states. What are the challenges that hinder free trade between African states? How will Africa benefit when they trade among themselves? These and other questions will form the basis of this paper guided by the theory of dependency as shrouded under neo-colonialism.