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EDITORIAL: Africa must stop endless whining and trade more with itself

Thursday January 26 2017
trade

While instruments like the Tripartite Free Trade Area and the proposed Continental Free Trade Area are steps in the right direction, adoption remains fitful at best. TEA GRAPHIC | NATION MEDIA GROUP

Over 3,000 participants from governments, NGOs, captains of different industries gathered in Davos, Switzerland to discuss policy options for dealing with critical issues like poverty, climate change and mending the global economy.

In one of the panel discussions dubbed “Rebuilding Africa” the moderator asked President Paul Kagame whether he feels Africa has the appropriate transition of power, such that investors don’t have to dread leadership change.

The parallels between this question and the sad political spectacle in The Gambia, where former president Yahya Jammeh brazenly refused to hand over power even after he conceded defeat could not have been lost on observers. It was also poignant for East Africa because of the elections this year in Kenya and Rwanda, not to mention the fallout from stalled processes in Burundi and the Democratic Republic of Congo.

With the benefit of hindsight, we can say that a better question perhaps should have been, why do the leaders of African countries fail to see the potential of intra-African trade and instead continue to fight for the highly restricted western markets?

It is paradoxical that half a century after Independence, African countries continue to scramble for foreign direct investment —we are still inclined towards serving the tastes and convenience of our colonial masters — while going out of their way to make it difficult for their neighbours to trade with them in favour of the more costly and less profitable offshore route.

President Kagame rightly chided his audience for spending too much time talking about Africa’s problems without tackling the real issues that cause it in the first place.

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Records show that in 2014, intra-African trade accounted for only 16 per cent of the continent’s trade volumes, yet Asia accounted for 61 per cent of its trade against 69 per cent with Europe.

Our misery is largely self inflicted; we don’t appear to be eager to build the frameworks that address our fears, real or imagined, of each other. While instruments like the Tripartite Free Trade Area and the proposed Continental Free Trade Area are steps in the right direction, adoption remains fitful at best.

Events like Jammeh’s refusal to hand over power may form sexy talking points but they divert attention from the real issue – which is the quality of leadership.

Until the African leader begins to focus on the interests of his people and see ow these can be enhanced through a more open market place in Africa, picking out on the mechanics of power transfer without the substance will appease western audiences but not change much for the ordinary African.