Accelerating African Trade – The “Eco” of Liberalization

Africa, including the former French West African colonies, continues on promoting barrier free Pan African trade.  Facilitating open trade and a common currency accelerates opportunities for the world’s fastest growing continent to prosper. Positive steps to increase African investment by releasing African reserves from the stewardship and use by French Treasury were announced this week by President Marcon. Simply put, as proposed, previously sequestered funds are now available for direct African investment.  The proposed decommissioning of the French-linked West African CFA franc was also announced with the endorsement of the “Eco” as the replacement currency.   One expected positive outcome of liberalization is continuation of promoting a common currency, opening pan -African trade and accelerating trade flows.

Africa Trade Alliances – The World’s Largest since the World Trade Organization

Parallel paths to promote African autonomy continue with regional trade alliances. Countering global trends towards nationalization, North Africa including Tunisia, increasingly unite as trade partners. The West African Economic and Monetary Union and the Economic Community of West African States (ECOWAS) minimize trade barriers and harmonize customs practices.  English and French speaking Africa links formalized in March 2019 with the African Continental Free Trade Area (AfCFTA) – the world’s largest since the 1994 World Trade Organization. As perspective COMESA, similarly with its 21-nation membership serves 560 million people links Tunisia, Egypt and Madagascar improving the focus on Technology and Biotech developments.

Gateway into Global Markets – Tunisia

Boosting inter-regional and global trade frameworks is constructive of the continent. Unleashing Africa’s long-stymied economic potential strengthen supply chains and spread shared expertise is both aspirational and realistic.  Increased Pan-African trade flows increasingly funneled into Europe and the United States from gateway countries like North Africa led by Tunisia, are irreversible.  The Tunisian and other American Chamber of Commerce actions, guide export expansion, ratify opportunities for Pan African business and trade-linked profitably – gradually erasing the shadow of a colonial past.

Overall regional bright spots and commitment to pan-African free trade agreements are expected to positively bolster Tunisia’s resiliency.  International perspectives support an optimistic outlook for continued regional growth. Moody’s Inside Africa, (October 2019) cite Egypt’s rate cut and easing inflation as supporting bank revenue and economic growth.  Recent actions by the Central Bank of Morocco, are also viewed by Moody’s as positive for the Moroccan banking sector and by implication, Moroccan ownership interests in the Tunisian financial sector.

Trade alliances for Tunisia, North Africa, and the continent  are positively recognized by AmCham Tunisia, although remaining neutral on  recent political developments.  Fitch’s Africa Monitor (November Edition 2019), highlights Tunisia’s “challenging policy environment” post-election, coupled with a “stormier global environment”.   For Africa generally, Fitch Solution reports strengthening of trade agreements including the May 2019 African Continental Free-Trade Area — the world’s largest free-trade zone. Economic and trade integration for Africa are expected to promote higher growth and create new investment opportunities. This is good news for the investment community. Tunisia trade and investment benefit from its entry into COMESA last year and, as announced at the September meeting,  it’s proposed entry by year end 2019 to the COMESA Free Trade Area.

https://www.comesa.int/2019/09/27/countries-participating-in-the-comesa-fta-set-to-increase/