Abstract
Trade has been closely linked to the domestic, regional, intra-continental and global growth and development of states for centuries. However, Africa enjoys minimal benefits from the global scale of trade. In 2009, Africa’s share in the global GDP was more or less 3% of world merchandise exports. Africa as a resource rich continent is labeled as the continent with the highest number of poor citizens. The signing of the African Continental Free Trade Agreement (AfCFTA) in March 2018 was a step towards the establishment of the AfCFTA to boost intra-Africa trade thus, serving as a game changer for Africa on the global economy. This study is an exercise of the application of two contrasting International Relations (IR) theories, namely, mercantilism and economic liberalism to describe and analyse Africa’s intra-continental trade challenges and opportunities from the political, economic and technological environment. The AfCFTA is an initiative which is intended to improve Africa’s trade and economic condition. The underdevelopment of Africa is a result of mercantilist related practices, therefore as a contrasting theory, economic liberalism might possibly bring about development for the African continent. As a result, this study further explores instances whereby, free trade being an economic liberalism principle, could possibly result in mercantilist practice as an end-result. The African Continental Free Trade Area (AfCFTA) is the main unit of analysis for this study. This study investigates the similarities and differences between various global Free Trade Agreements, namely, European Free Trade Association (EFTA), North American Free Trade Agreement (NAFTA), and ASEAN Free Trade Area (AFTA) to draw lessons learned or best practice, or both, from these FTAs taking into consideration the origin, political and economic relations of each member state of a respective FTA. The essentials of the intra-Africa political economy are also examined with the intention to further draw the lessons learned and/or best practice from the initiatives, such as Lagos Plan of Action (LAP), Structural Adjustment Programs (SAPs), Regional Economic Communities (RECs) and more, leading up to the AfCFTA. A main finding of the study is that despite overt differences, there are many underlying similarities between the end-results of the mercantilist and economic liberalism efforts; another is that the factors contributing to the challenges in various FTAs could possibly arise in the AfCFTA. Therefore, an approach which will be complementary to the intra-Africa political economy is crucial to realise the opportunities of the AfCFTA.
M.A. (Psychology)