Inclusive economic
development remains one of the core elements of both the African Union’s Agenda
2063 and the United Nations Sustainable Development Goals (SDGs). In
furtherance of this, article 3(e) of the African
Continental Free Trade Area (AfCFTA) main Agreement and article 27(2)(d)
of the Protocol on Trade in Services specifically mandate State parties to
promote gender equality and “improve the export capacity of
both formal and informal service suppliers, with particular attention to micro,
small and medium-sized; women and youth service suppliers.”
With over 60 percent of its population being
under the age of 25, Africa is regarded as the youngest continent in the world.
This presents both challenges and opportunities for the continent. For
instance, in Nigeria, the young population has led to attendant social risks as
unemployment nears 40% creating a ticking time bomb. The popular saying is that
an idle mind is the devil’s workshop.
On the positive side, however, the young
population when properly harnessed will heighten productivity and provide
affordable labour which in turn may lead to increase in investment. Nigerian
youths just like their counterparts in other African States are known to be
very innovative and enterprising. With the right policy and the enabling
infrastructures, this energic population can drive the AfCFTA agenda.
Relatedly, women constitute most of the players
in the SMEs ecosystem, accounting for nearly 90% of the labour force in the
informal sector. A visit to the popular Balogun market in Lagos Nigeria will attest
to this fact. No doubt, regional informal trades amongst women and youth within
the ECOWAS region have been going on even before AfCFTA. But the new trade deal
is meant to open the door to a population of 1.3 Billion people with a combined
GDP of USD2.6 Trillion.
This is a huge opportunity and further
buttresses the need for gender-sensitive and youth-centric implementation that
will ensure sustainable and inclusive growth. As noted by a commentator, women
and youth traders are less likely to be equipped with the appropriate skills,
technology and resources that would enable them to benefit from trade and trade
liberalization as they continue to suffer from invisibility, stigmatization,
violence, harassment, poor working conditions and lack of recognition for their
economic contribution.
These challenges are made worse by non-tariff
barriers such as poor infrastructure, insecurity, lack of access to funds, high
unemployment, weak currency, cost of capital, multiple taxations, and other
regulatory hurdles. A clear example of the hurdle being the recent
intervention by the agencies of the Federal Government of Nigeria in the areas
of FINTECH and Cryptocurrency.
Just last week, the Securities and Exchange
Commission issued a circular advising Capital Market Operators to sever ties
with platforms that facilitate access to trading in securities listed in
foreign markets. While recognizing the role of the regulators to protect the
investing Nigerian public and their assets, however, the interventions have been
interpreted by many as capable of sending a wrong signal and acting as
disincentives to innovation. Again, this brings to the fore the need for
Continental Free Trade that fosters inclusiveness with member States initiating
policies that create more opportunities for the youth and women.
At the webinar held on 29 March 2021 to mark
the signing of the MOU on strategic partnership between the AfCFTA Secretariat
and the United Nations Development Programme (UNDP), the AfCFTA
Secretary-General Mr Wamkele Mene re-echoed the need for inclusiveness in the
AfCFTA implementation with the following words:
“We’ve learnt from other trade
agreements in the world. And the lesson to draw is that if a trade agreement
neglects the most vulnerable segment of the society, if a trade agreement is
perceived to benefit only the multi-national corporations, only the elite, it
shall not succeed and it shall not have legitimacy as far as the citizens are
concerned. And so that is why I have made it my priority in the implementation of
this agreement that there should be shared benefits, there should be shared
responsibility with Africans across the length and breadth of the African
continent in concrete areas such as affirmative action for women in trade. We
are looking at concrete ways in which we can expand the benefit for young
people and for women in trade. This is the type of development that we require
in order to make this agreement successful. This is the type of development
that we require to make sure that the benefits are inclusive.”
This Statement coming from the AfCFTA
Secretariat is a clear indication of the aspiration towards gender-balanced and
youth-sensitive AfCFTA. However, one is not unmindful of the limited role of
the AfCFTA Secretariat in the implementation process. The actual
implementation is done at the national and regional level. And this is not to
underestimate the very critical albeit complementary role that the Secretariat
plays in this regard.
Therefore, the change must start from each
member country and percolate through the regional economic blocs and finally to
the entire Africa. Nigeria through its agencies such as the Central Bank of
Nigeria (assisted by the private sector) can support inclusiveness by providing
AfCFTA-focused low-interest financing, training of the SMEs on cross-border
trades as well as other incentives to promote the engagement of women and youth
in trades on the continent.
The impact of the COVID-19 pandemic on youth
and women-led businesses has widened the economic gap and further impoverished
those at the lowest rung on the economic ladder – mostly women and youths. This
calls for heightened capacity building in creating new trading and
entrepreneurial opportunities for all. With the constant value erosion in the
local currency and low-yield environment, entrepreneurs and SMEs in Nigeria
can, through cross-border trades, hedge against business risks and equally take
advantage of possible arbitrage that exists in different markets within the
AfCFTA.
A shift from the business-as-usual approach on
the issue of women and youth is needed under AfCFTA to ensure that the
objectives are actualized. Although the AfCFTA is not the magic bullet or the
cure for all the economic challenges facing the youths and women in Africa, it
is hoped that when fully and equitably implemented, it will go a long way to
address some of the factors inhibiting the economic growth of these vulnerable
groups.
A recent report commissioned
by the UNDP and the AfCFTA Secretariat titled “The Futures Report: Making the
AfCFTA Work for Women and Youth” which was published in December
2020 has shown that beyond the projections, numbers and negotiations, the
realization of the AfCFTA objectives will depend on decisive actions and
collective efforts of the African people. Therefore, concrete measures and
investment are needed to ensure that women and youths, who account for the
majority of the population, business owners and workforce can be better
integrated into the value chains, jobs and opportunities available under the AfCFTA.
As shown by the Report, many entrepreneurs and
SMEs across Africa are already taking steps and positioning themselves to
benefit from the free trade area and scale their businesses. Some SMEs owners
interviewed noted that they are increasing their production lines and sourcing
for inter-continental partnership ahead of the progressive implementation of
the various phases of the trade regime.
The SMEs and Startup ecosystem in Nigeria which
are dominated by women and youths should equally take advantage of these
opportunities. Finally, given that trades in goods and services are fast moving
into the digital space, the AfCFTA members States need to invest heavily in
digital infrastructures and urgently address the high cost of data in Africa
which has made it difficult for the majority of women and youths to access
opportunities available online.
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