Kwaku Kwarteng questions viability of single market in AfCFTA

Kwaku Kwarteng, an economist and former Deputy Finance Minister, has reignited the debate regarding the feasibility of establishing a single market within the African Continental Free Trade Area (AfCFTA) agreement.

Kwarteng argues that the vision of a borderless single market to boost intra-African trade may remain elusive due to the strikingly similar characteristics shared by many African economies.


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During an interview with the media at a meeting between the Private Enterprise Federation (PEF) and members of the Finance Committee in Parliament, Kwarteng, also serving as Chairman of Ghana's Parliament Finance Committee, expressed skepticism about the practicality of the agreement, particularly for certain African countries.

The AfCFTA aims to create the world's largest free trade area, connecting 1.3 billion people across 55 countries, with a combined GDP of US$3.4 trillion. While it holds the potential to lift millions out of poverty, experts emphasize the necessity of significant policy reforms and trade facilitation measures for its success.

Kwarteng raised pertinent questions, highlighting potential challenges: "Integration is beneficial, but it can pose hazards, especially when integrating similar economies. For example, in Ghana, the machinery required for our industrialization doesn't originate from other African countries; it comes from Europe."

He further noted the redundancy of integrating economies with similar characteristics, stating, "When two countries possess similar attributes, attempting to merge them as one trade partner becomes unrealistic. While the concept of 'one Africa' may sound appealing, in practice, trading with countries that lack what you have, and vice versa, becomes more pragmatic."

Kwarteng emphasized the complexity of the AfCFTA agreement, advocating for a common external tariff across the continent before considering free movement of goods and services.