Political risk as a deterrent to industrialization of Africa

Many agree that the construction of the African Free Trade Area (AfCFTA) can be an important opportunity for advancing the industrialization of the African continent[1], as the newly established Free Trade Area (FTA) will offer opportunities to both African and foreign investors to establish productive units in one or more African countries from where they can serve the marketsContinue reading “Political risk as a deterrent to industrialization of Africa”

‘Bad trade’ and risks of stifling local production in Africa

John Cary, a prominent British merchant and writer on matters regarding trade, wrote between the end of ‘600 and the beginning of ‘700 two manuscripts where he argued that a trade model based on the export of raw materials/commodities and import of manufactured/industrial goods has a destructive effect on the economy of the nation exporting raw materials, as it stiflesContinue reading “‘Bad trade’ and risks of stifling local production in Africa”

The 3-color card trick in Africa and a possible continental vehicle insurance scheme

Many African Regional Economic Communities (RECs) have adopted regional motor vehicle insurance schemes to cover third-party liabilities and medical expenses for the drivers in case they suffer any bodily injury as a result of a road accident. The advantage of such schemes is that they facilitate cross border movement of vehicles between States, as drivers can travel within these Regions withoutContinue reading “The 3-color card trick in Africa and a possible continental vehicle insurance scheme”

AfCFTA: focus on tariff or non-tariff barriers?

Apart from elimination of tariffs between the African Union (AU) member States (which means elimination of import duties and other levies on imported goods), another objective of the AfCFTA is the elimination of non-tariff barriers (NTBs). NTBs are generally defined as all those restrictive regulations and procedures, other than tariffs, that make more difficult and/or costly to import or export products. Among these measures there are importContinue reading “AfCFTA: focus on tariff or non-tariff barriers?”

Is the AfCFTA a path to industrialization or industrialization should come first?

A common topic among academics is that Preferential Trade Agreements (PTAs) spur industrialization because of the increasing trade flows that are generated in the preferential trade areas as a consequence of tariff liberalization, that foster competition and efficiency of economic operators, promoting industrial development[1]. But if we look at what happened in other Regional contexts, this is not exactly the path that others followed.  TheContinue reading “Is the AfCFTA a path to industrialization or industrialization should come first?”

Will the AfCFTA implementation be pragmatically supported by African countries?

An interesting article published by Andrew Mold, Acting Director, Office for Eastern Africa, Economic Commission for Africa, talks in favour of the African Continental Free Trade Agreement (AfCFTA), pointing out how the AfCFTA will promote the growth of regional trade, and rejecting the criticism of those who are skeptical to its implementation. One of the most important impendingContinue reading “Will the AfCFTA implementation be pragmatically supported by African countries?”

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