AU Amb Chihombori-Quao: “The African Sleeping Giant is Rising”-The Significance of the Africa Continental Free Trade Area

On June 2, 2019, I interviewed African Union Ambassador to the United States, Arikana Chihombori-Quao at her home, on the significance of the new agreement on an Africa Continental Free Trade Area-AfCFTA, initiated on May 30. The AfCFTA is intended to reduce tariffs and barriers between African nations to promote trade, and spur economic development throughout the continent.

 

In the interview above, Ambassador Arikana Chihombori-Quao, provides a provocative and optimistic analysis of what the newly enacted agreement for an Africa Continental Free Trade Area-AfCFTA will mean for continent over the coming years and decades.

Amb Chihombori emphasizes huge potential for the AfCFTA to double, triple and even quadruple intra-African trade, which today is a mere 16%-18% of total continental trade. According to the UN Commission on Africa, AfCFTA could increase intra-trade by 15% to 25%, that equals $50-$70 billion in the next 20 years.  The concept of AfCFTA is to enable each African with the opportunity to potentially access the continent’s multi-trillion dollar market and 1.2 billion buyers and sellers. Landry Signe of the US based Brookings Institute estimates that by 2030 AfCFTA could boost consumer and business spending to $6.7 trillion.

Historically, Amb Chihombori views the AfCFTA as a continuation of the struggle by African nations to liberate themselves from intended under-development imposed on Africa by the infamous Berlin Conference (1884-1885). She stresses that 56 years (and five days) after the founding of the Organization of Africa Unity-OAU (May 25, 1963), Africa will now be functioning as one trading bloc of nations, which is intended to equalize the international playing field. As the implementation of AfCFTA proceeds, Amb Chihombori believes that Africa will acquire the stature of a “heavy-weight” in global trade and commerce. She is also hoping that by the end of this year Africa will ratify the “Free Movement Protocol” that would allow Africans to live, travel, and work anywhere on the continent, thus complementing the AfCFTA

Amb Chihombori accentuates in this interview, that infrastructure is a level one priority for Africa in the AfCFTA. “Investment in infrastructure is an absolutely essential step for us to take as we move into the implementation of AfCFTA,” she says. The denial of basic infrastructure, power, access to water, education and healthcare, by the colonial powers following the Berlin Conference, kept African nations from  developing; by design. “Leaders in Africa are now discussing the building highways and high-speed rail from Cape Town to Cairo and Djibouti to Dakar.”

Challenging those who advocate reducing Africa’s population and falsely claiming that Africa’s growing population is a major contributor to Africa’s economic problems, Amb Chihombori asserts that: “Our youth is the biggest advantage we have over the rest of the world…Youth is our biggest asset.”

Amb Chihombori wants to make the US the number one trading partner with Africa, telling Americans; “that the African sleeping giant is rising-it is a new game.”

***The AfCFTA had already come under attack, even before its birth, by the International Monetary Fund-IMF. According to the People’s News Africa, the IMF warned African nations they could lose revenue, if the AfCFTA is enacted.

Rwanda’s President Paul Kagame quickly responded: “It is important that Africa gives the necessary considerations to the views and opinions by external entities and ‘development partners,’ it is more important at the same time that Africa becomes aware of what we want for ourselves, pursue what is good for the continent, and defend what is necessary for our collective development.”

Celebrate Africa’s New Free Trade Agreement: Terminate CFA franc

With the initiation of the Africa Continental Free Trade Agreement on May 30, 2019, now is the time for African nations to finally jettison the CFA frank, a relic of French Colonialism. No longer should 14 African nations have their sovereignty infringed upon by a former European colonial country. Economic sovereignty is inviolate. For a nation to develop its full economic potential it must control its currency, which is a from of national credit. One of the great accomplishments of the President’s George Washington’s Secretary of the Treasury, Alexander Hamilton, was his creation of a National Bank, which unified all the currencies and debt held by the thirteen colonies. A nation that does not have sovereign authority over its currency and credit will never be truly free, and its people will suffer from underdevelopment..

Map showing those countries using the CFA franc
It’s used by Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali. Niger, Senegal and Togo in West Africa, and Cameroon, Central African Republic, Chad, Congo-Brazzaville, Equatorial Guinea and Gabon in Central Africa

Read: Africa’s CFA Franc Colonial Relic or Stabilizing Force