AS African leaders prepare for their summit in Addis Ababa over the coming weekend, they are being urged to ensure that the landmark African Continental Free Trade Area (AfCFTA) can spur Africa’s economic transformation by creating 15 million ‘new decent jobs annually’.
Two years after the AfCFTA agreement became operational, the continent has yet to make progress in its implementation.
African countries have been grappling with the consequences of the converging economic crises: the Covid-19 pandemic, the war in Ukraine and climate change.
As a result, 22 African countries are either in debt distress or at a high risk of it, unable to address the aftershocks, notably rising cost of living and loss of jobs and incomes.
In March 2022, the ONE Campaign, a global organisation aiming to end extreme poverty and preventable disease by 2030, launched the JobsNowAfrica initiative and the People’s Charter on Jobs Creation in Africa.
It was a direct response to the escalating unemployment crisis, worsened by the pandemic and the inadequate response of African governments across the board.
ONE Campaign and its partners are now calling on these governments and key stakeholders on the continent to break down structural barriers, make policy commitments that will allow African businesses to thrive and aid the creation of 15 million new decent jobs annually.
‘The 36th African Union Heads of States Summit presents an opportunity for African leaders to spur Africa’s economic recovery and transformation by committing to implement the AfCFTA fully,’ ONE Campaign said in a statement.
‘If implemented fast and properly, AfCFTA could help the continent solve its pressing challenges and realise the African Union’s Agenda 2063 aspirations.
‘Real income could increase by an additional $571 billion, creating 17.9 million new jobs and lifting 50 million out of extreme poverty by 2035.’
ONE Campaign said African leaders ‘must deliberate and agree on actions, strategies, and processes to facilitate interregional trade and freedom of movement of people, strengthen investment in human capital, improve ease of doing business, unlock the investment for critical infrastructure, and build resilience to climate change’.
Outlining the setbacks holding up regional integration, ONE Campaign pointed out that one these related to free movement of people, goods and services.
‘Regional integration can only happen with free mobility and by reducing the cost and time of moving goods across borders,’ ONE Campaign’s statement said.
‘Hence, it is critical for African leaders to adopt, ratify, and implement the AU protocol on the free movement of people across the continent; every young African deserves an African passport; and improve cross-border management by simplifying trading requirements, digitalisation of administrative procedures, and having one-stop border posts.’
The organisation also called for African countries to make it easier and affordable to do business and produce goods and services.
ONE Campaign explained: ‘Enact and enforce a consolidated national start-up law, similar to the Nigerian Start-up Act, to improve the business environment.
‘The laws should establish equity and guarantee funds to de-risk investment.
‘It should also protect intellectual property rights, simplify and automate administrative procedures, harmonise tax administration, and make information readily available through one-stop digital platforms.’
On the financial side, ONE Campaign would like to see better access to credit, and subsidised loans and grants, while government must unlock additional investment for critical infrastructure and value chains.
The organisation also called for the digital divide to be rapidly closed so that there would be an increase of internet penetration from 82.4 per cent in 2021 to over 90 per cent in 2030
Enhanced transport networks for rural and regional connectivity, and grid expansion with renewable off-grid energy solutions to improve access to reliable and affordable electricity are other recommendations that ONE Campaign is urging the AU summit to consider.