Moghalu: AfCFTA Pledges to Elevate 30 Million Nigerians and Africans from Poverty by 2035

Professor Kingsley Moghalu, the Chairman of the Board of Directors and Advisory Board at the Africa Private Sector Summit, recently articulated a vision for the African Continental Free Trade Area (AfCFTA) that could potentially uplift 30 million Africans, including Nigerians, out of poverty by 2035.

Speaking at the AfCFTA Joint Private Sector Session during the 2023 Afreximbank Intra-African Trade Fair in Cairo, Egypt, Moghalu outlined the transformative potential of the AfCFTA and emphasized the crucial role of the Private Sector Bill of Rights (PSBoR) in achieving these ambitious goals.

In a statement reported by Infostride News, Moghalu stressed the need to integrate the PSBoR as a complementary instrument alongside the existing Regional Economic Communities (RECs) and the AfCFTA. By doing so, he argued, Africa could shape a future that promotes economic growth, poverty reduction, and positions the continent as a thriving business hub. According to Moghalu, as of August 2023, 47 out of 54 African countries had ratified the AfCFTA, indicating a substantial commitment to the vision of increased intra-African trade and economic development.

The implementation of the AfCFTA, when fully realized, is expected to have a profound impact on the continent. Moghalu cited statistics, highlighting that the AfCFTA could boost intra-African trade by an impressive 52%, resulting in the elevation of 30 million individuals out of poverty. Additionally, the AfCFTA has the potential to contribute significantly to Africa’s GDP, with an estimated increase of $450 billion by 2035. These figures underscore the transformative power of regional economic integration and cooperation.

The PSBoR, according to Moghalu, plays a critical role in fostering economic growth and combating poverty. By identifying specific rights derived from the protocols of the RECs and AfCFTA, the PSBoR is positioned as an essential companion instrument to the AfCFTA treaty. Its adoption by national governments, private sector governing bodies, and coordinating entities is seen as a crucial step in domesticating the continental trade agreement within the fabric of African societies.

Moghalu emphasized the interconnectedness of the PSBoR with existing frameworks, stating that it would contribute to thriving businesses, increased tax revenues for governments, and the sustainability of capital markets. He envisions a path similar to that which led to the successful adoption of the AfCFTA, seeking endorsement by national parliaments and executive branches of governments across the continent.

The PSBoR addresses a fundamental conundrum that has persisted in post-colonial Africa for decades, according to Moghalu. He questioned why market-oriented economies in Europe, North America, and increasingly in Asia have created broad-based wealth, while poverty remains stubbornly high in the majority of African countries. The AfCFTA, coupled with the PSBoR, aims to break this cycle and align with the African Union’s vision 2063 – The Africa We Want.

Attributing high poverty rates in Africa to the relatively low level of intra-African trade, Moghalu highlighted specific guarantees provided by the PSBoR. These include the right to favorable credit terms supporting short, medium, and long-term investment projects, as well as trade credit supported by the Africa Trade Insurance. Additionally, the PSBoR ensures the right to benefit from scientific progress and innovation, as well as the right to local content in intellectual property.

In conclusion, Professor Kingsley Moghalu’s visionary insights at the AfCFTA Joint Private Sector Session underscore the potential for the AfCFTA, coupled with the PSBoR, to be transformative forces in shaping Africa’s economic landscape. The commitment of African nations to ratify the AfCFTA signals a collective effort toward fostering economic growth, reducing poverty, and creating a more prosperous continent by 2035. As discussions progress and implementations take shape, the collaboration between regional economic frameworks, private sector entities, and government bodies will be instrumental in realizing this bold vision for Africa.