AfCFTA and Structural Transformation in Africa

Abstract

This article analyses the extent to which the African Continental Free Trade Agreement (AfCFTA) can go beyond its words to achieve  effective structural transformation in Africa. Using a systematic analysis of the agreement, based on Rekiso’s taxonomy, the article finds four main results. (1) AfCFTA provides countries with the adequate industrial policy space. (2) AfCFTA cares about local industries and their protection. (3) AfCFTA provides appropriate instruments to ensure improvement in productivity while treating differences in development level with caution. On the other hand, the article finds (4) that there is a need to solve the coordination problem. This issue is crucial for adequate  management of structural transformation through integration in Africa.