Chairperson of the AU Commission Moussa Faki Mahamat addresses the 36th Ordinary Session of the AU Assembly in Addis Ababa, Ethiopia, on 18 February

African thinking, African knowledge, African solutions and African resources are the key words that the African leaders are using in their messaging as they strive to be effective in addressing and creating conducive conditions for the continent to develop and thrive, and help Africans to reap the benefits of the continent’s abundant natural resources - tens of thousands of kilometres of coastline and millions of cubic kilometres of ocean water, tens of millions of hectares of land and real estate, a sky full of stars and sunshine, and energy in all its manifestations. 

This year marks a decade since the adoption of the African Union (AU) Agenda 2063. African leaders met at the AU headquarters in Addis Ababa, Ethiopia’s capital. This 36th Ordinary Session of the Heads of State and Government of the AU, also known as the AU Summit held on 18-19 February, was themed “Acceleration of AfCFTA (African Continental Free Trade Area) implementation.” The pan-Africanist body’s multi-pronged measures and actions are building momentum at a time of disruption in the global economy and geopolitics.  

Mobility and connectivity across the vastness of a continent with 30 million square km of landmass is a challenge; however, it presents an invaluable opportunity for the companies offering state-of-the-art ICT networks, innovative infrastructure and cohesive logistics services. Linking 1.4 billion Africans, 70 percent of whom are 30 years of age or under, is an intriguing prospect that opens a myriad of dynamic possibilities to ignite the exuberance of the youth. Free movement of people, African passport and Single African Air Transport Market are among the AU flagship projects that are central to the integration of the African continent. Increased travel, tourism and hospitality will bolster auxiliary industries and supply chains as well as work and employment opportunities in a services sector that is reliant on human resources. 

Trade in services will come into sharp focus of the AfCFTA in 2023. These include transport, logistics, finance, commerce and communications. Small and medium-sized enterprises, women and young people were given special consideration in the finalisation of the AfCFTA Phase One and Two Protocols, which provide a legal basis for trading. These provisions in the protocols acknowledge the value and strength of small businesses and the need to keep big corporations in their lane. Protocols on investment, competition policy, and intellectual property rights will further facilitate fair business activities and create a platform to generate funding and attract investment. A commitment to reduce tariffs on 90 percent of goods traded within the next 10 years will make a significant impact on addressing costs and pricing and alleviating poverty.    

The AfCFTA Guided Trade Initiative will align the processes for the import and export of goods to AfCFTA standards and requirements, and link relevant businesses in the supply chains. The $10-billion adjustment fund will support the changes required to effectively participate in the new trading regimes and reorganise operations. A base fund, a general fund and a credit fund will progressively be implemented to manage the transition and make provisions for unanticipated outcomes. With 42 African currencies, the Pan-African Payment and Settlement System is a centralised mechanism that will ensure that transactions, the exchange and movement of money are safe, efficient and stable. Agro-processing, automotive, pharmaceuticals, and transportation and logistics will be prioritised by the AfCFTA Private Sector Strategy. The production and manufacturing of high-value goods, professional services and business innovation will be fostered through this programme.  

The launch of a digitised e-Tariff Book will speed up the movement of goods and enhance customs procedures. The establishment of the Automotive Fund for the production of vehicles and associated components and technology will bring manufacturing close to the source of the raw materials. Regulatory Audits on Trade in Services will essentially be a recurring improvement assessment exercise that will be hugely beneficial to identifying challenges, and updating and upgrading systems to an optimum, ensuring the best outcome for the AfCFTA.    

China’s Belt and Road Initiative has already made significant contributions to AU Agenda 2063. The construction of infrastructure and logistics continue to play a complementary role in the AfCFTA and its mandate to accelerate the integration of the continent. In his congratulatory message to the 36th AU Summit, Chinese President Xi Jinping emphasised that China-Africa relations maintained sound momentum of development in 2022, and China-Africa cooperation has moved ahead to be all-round, multi-tiered and high-quality, taking the lead in international cooperation with Africa. He expressed his readiness to work with leaders of African countries to further strengthen friendly cooperation between China and Africa, enhance coordination and collaboration on international and regional affairs, and work for the building of a high-level China-Africa community with a shared future. 

The 36th AU Summit has affirmed the direction and progress of the African people. The interactions between the structures of the AU project an efficient functioning of the organisation. There is a growing confidence in the leadership to bring about a transformation in continental affairs that will realise its potential, inspiring a sense of purpose and belonging in the creation of the Africa we want. 

The author is director of the Diplomatic Society of South Africa