Dr Caleb FundangaVG , former Executive Director of the Macroeconomic and Financial Management Institute (MEFMI)is a distinguished economist who is passionate about the development of Africa. MEFMI, is a regional capacity building institute in the areas of macroeconomic and financial management based in Harare, Zimbabwe. Prior to joining MEFMI in 2014, he had at various times served as Governor, Bank of Zambia, Executive Director, African Development Bank (AfDB) and Director of the African Export-Import Bank (Afreximbank). In this interview with Kelechi Deca, Fundanga speaks on the challenges and prospects of the African trade and cooperation. Excerpts:
The world is currently battling with protectionism as the trade war between the United States and China impinges on multilateralism. What should African countries do to reposition themselves to wriggle out of the challenges of protectionism?
It is a huge opportunity for Africa to look inward. As Africans, we can support our own growth, because the trade war between the United States and China can affect us negatively if we are to depend on these two global powers to pull us out of our situations. But the opportunities for Africa are tremendous. The United Nations recently came up with the population estimate that by 2050, Africa will have the largest population in the world as well as the youngest population in the world. These are great opportunities and so, we should drive our own development rather than depend on the developed countries. For me, this issue of African Continental Free Trade Area (AfCFTA) is coming at the right time; Africa is in dire need of such opportunities and it is going to unite the whole countries on the continent. It will pave the way for African countries to trade with one another and by so doing; we can grow and build our small economy. Trade is a uniting factor. Even when you talk of the African Union as one political entity, it can best be achieved with more trade amongst us.
To what extent have regional bodies in Africa helped in promoting intra-African trade?
If you look back, those were supposed to be the building blocks. We envisaged that if each group could start cooperating, then eventually when it comes to a whole continental union, it is the regional ones that will serve as building blocks. Of course, it has not been very successful but many African countries have been at a talking terms with one another. However, I believe that what the continental free trade zone will do is to go beyond what the regional bodies have so far achieved.
What is your take on the future of trade cooperation?
Trade cooperation is sometimes difficult. You will hear of some countries that are not ready to get sugar from their neighbours even when it is produced cheaper; they believe that they cannot be importing something they can also produce. But I strongly believe that in the long run, we would have greater confidence on the broader benefits of free trade in Africa which is to improve on the quality of lives of our people. We could start from those things we produce, and then graduate to much bigger ones until we embrace the entire continent.
Three African countries, including Nigeria are yet to sign the AfCFTA. What is your take on their apparent reluctance to be part of the African Free Trade Zone?
I think they should make their decision quick. However, they need time to decide. If you rush and you do not carry your country along, it may explode on your face politically. So, I guess when decisions are to be made, there have to be adequate consultations. But to my understanding, last year when they signed the agreement in Kigali, Rwanda, the time was supposed to be adequate for consultations. My hope is that at the end of the day, everybody, particularly the big countries, would come on board. For example, an African country like Nigeria is a giant in the continent and the size of its market alone is huge. So, if Nigeria is not there and you pick up 10 to 20 of other smaller countries, they may not match the size of Nigeria. Therefore, the big economies in Africa must all come on board. The smaller countries also stand to benefit from it. My plea is that everybody should come on board.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.