The AfCFTA: Strategies for an Intra-Africa Environmental Protection Framework
The African Continental Free Trade Area (AfCFTA) is a landmark initiative that aims to create a single market for goods and services, facilitate the movement of people, and promote industrial development and sustainable growth in Africa. The agreement, which covers 55 countries and 1.3 billion people, has the potential to boost intra-African trade, reduce poverty, and foster regional integration.
However, the AfCFTA also poses significant environmental challenges that need to be addressed, as increased economic activity may lead to more pollution, resource depletion, and biodiversity loss. The expansion of trade and production could lead to increased greenhouse gas emissions, deforestation, biodiversity loss, water pollution, and waste generation. These environmental hazards could undermine the health and well-being of African people and ecosystems, as well as the long-term viability of the AfCFTA.
Here, we will discuss some of the main environmental risks and opportunities associated with the AfCFTA, and provide some recommendations on how to ensure that the agreement contributes to a green and inclusive recovery for Africa.
According to the United Nations Economic Commission for Africa (UNECA), the AfCFTA could increase intra-African trade by 52% by 2022, and by more than double if accompanied by trade facilitation measures. This would enhance the competitiveness of African industries, foster regional integration, and promote economic diversification and structural transformation. The AfCFTA could also generate significant welfare gains for consumers and producers, create more jobs and income opportunities, and reduce poverty and inequality. Furthermore, the AfCFTA could strengthen Africa’s position in the global economy, by increasing its bargaining power and enhancing its participation in global value chains. The AfCFTA is, therefore, a key instrument for achieving the African Union’s Agenda 2063, which envisions a prosperous, peaceful, and integrated Africa.
These significant benefits of the AfCFTA, as attractive as they seem, may usher in a plethora of environmental risks, which must be taken into consideration especially as the agreement is in its early stages of operation, for Africa to position itself to anticipate and mitigate these challenges, as an integrated Africa.
One of the main environmental risks of the AfCFTA is the expansion of trade in sectors that have high environmental impacts, such as agriculture, mining, and energy. These sectors account for a large share of Africa’s exports and are expected to benefit from lower tariffs and non-tariff barriers under the agreement. However, they also generate significant greenhouse gas emissions, waste, and water consumption, and often involve deforestation, land degradation, and habitat destruction. For instance, according to a World Bank report, agricultural expansion is the main driver of deforestation in Africa, accounting for 80% of forest loss between 2000 and 2010. Similarly, mining activities can cause soil erosion, water contamination, and air pollution, as well as social conflicts and human rights violations.
Another environmental challenge of the AfCFTA is the lack of adequate environmental standards and regulations in many African countries. The agreement does not include any specific provisions on environmental protection or sustainability, leaving it to the discretion of each member state to implement its policies and laws. However, many African countries have weak environmental governance systems, with low levels of enforcement and compliance, and limited public participation and accountability. Moreover, some countries may face pressure to lower their environmental standards or relax their environmental impact assessments to attract foreign investment or gain a competitive edge in the regional market.
A third environmental concern of the AfCFTA is the potential increase in cross-border environmental problems and conflicts. As trade and investment flow increase among African countries, so may the trans-boundary movement of pollutants, waste, invasive species, and diseases. These can have negative effects on human health, ecosystems, and biodiversity across borders. For example, air pollution from coal-fired power plants in South Africa can affect neighbouring countries such as Botswana and Zimbabwe. Likewise, water scarcity and pollution from irrigation and hydro-power projects in Ethiopia can affect downstream countries such as Sudan and Egypt. Furthermore, increased trade and transport may also increase the risk of smuggling illegal wildlife products or hazardous substances.
To address these environmental challenges and to ensure that the AfCFTA contributes to sustainable development in Africa, it is essential to adopt a holistic and integrated approach that balances economic growth with environmental protection. We recommend the following possible measures that can be considered:
– There is a need for the development and harmonization of environmental standards and regulations among AfCFTA member states, based on international best practices and norms. This would create a system of synchronicity across the AfCFTA market, guaranteeing the safety of the environment regardless of whichever market is considered.
– It is necessary for representatives of the negotiating parties to the Agreement to consider the importance of Incorporating environmental clauses and safeguards into such trade agreements. This is because, as much as the AfCFTA seeks to create a liberalized market that appeals to a wider set of investment interests, it must also be future-proof in how it approaches issues around environmental protection. We would also add that these same environmental safeguards need to find their way into more investment contracts, making provisions for such measures as environmental impact assessments, environmental audits, and dispute settlement mechanisms.
– As a way of incentivising participation in environmentally sensitive investments, countries who are party to the AfCFTA may consider promoting green trade and investment opportunities under the AfCFTA, such as renewable energy, organic agriculture, eco-tourism, and circular economy.
– It is critical to all environmental protection objectives that a framework on environmental cooperation and coordination among AfCFTA member states is created and instructively followed through. It will allow for ease of information sharing, joint monitoring and evaluation, capacity building, and technical assistance amongst all participating AfCFTA states.
– The engagement of civil society organizations, local communities, academia, media, and other stakeholders in the design, implementation, and oversight of environmental policies and programs under the AfCFTA is important for an effective and sustainable enforcement system.
In conclusion, the AfCFTA must incorporate environmental safeguards and standards into its design and implementation. The agreement should promote green trade policies that support low-carbon development, circular economy, renewable energy, and natural resource conservation. The agreement should also enhance environmental cooperation and coordination among African countries, as well as with external partners and stakeholders, by doing so, the AfCFTA can not only foster trade and development but also ensure environmental safety for the continent and the world.