Beyond Continental Free Trade area: the Need for a Collective Export Arrangement for African Economies

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Date

2025-01-01

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Addis Ababa University

Abstract

The African Continental Free Trade Area (AfCFTA) represents a historic effort to unify Africa's trade landscape and bolster intra-African trade. However, critical infrastructure deficits and the lack of complementary production structures hinder its potential. This study critiques the prevailing focus on intra-African trade, arguing for a shift toward collective export arrangements to enhance Africa’s competitiveness in global markets. By employing qualitative methodologies, including in-depth interviews with trade experts and a narrative analysis of existing literature, the research identifies systemic inefficiencies and structural challenges undermining Africa's trade performance. Findings reveal that collective export mechanisms, akin to export cartels, can offer an effective alternative to conventional integration strategies. These arrangements would leverage Africa's shared resources, mitigate competitive fragmentation, and strengthen its global bargaining power. The study advocates a paradigm shift in trade policy, emphasizing collaboration over competition and collective export strategies as a pathway to industrial transformation and sustainable economic growth for the continent. Keywords:African trade, collective export, AfCFTA, export cartels, regional integration

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Keywords

African trade, collective export, AfCFTA, export cartels, regional integration

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