The European Union Ambassador to Ghana, Rune Skinnebach, has called on African countries to embrace competition and overcome resistance to opening up their domestic markets if the continent is to achieve the objectives of the African Continental Free Trade Area (AfCFTA).
Speaking on the Citi Breakfast Show on Wednesday, November 4, Skinnebach acknowledged that some countries and businesses could be reluctant to embrace the arrangement because of fears that increased competition could undermine their existing market dominance.
He cited concerns among local businesses that have operated in protected markets for generations and may be unwilling to compete with companies from neighbouring African countries.
However, he cautioned that such resistance could undermine the broader ambition of establishing a unified African market where goods and services can move freely across national borders.
Skinnebach argued that although opening up markets could come with short-term challenges for some businesses, African countries must be prepared to make those sacrifices to secure greater economic opportunities in the future.
“I think that creating single markets, creating free flows across borders, it also comes with a short-term sacrifice, because it means increased competition at the home market,” he said.
He urged African leaders and businesses to look beyond immediate commercial interests and recognise the broader benefits of removing trade barriers across the continent.
“There’ll always be somebody who’s there, ‘Ah, but I don’t like competition from Burkina Faso. And I’ve been doing well for three generations here, and now we don’t want to spoil this edge that we have.’ But you need to think long-term; you need to think big,” he added.
The AfCFTA is aimed at creating a single continental market for goods and services, eliminating trade barriers, boosting intra-African trade and strengthening economic cooperation among member states.
SOURCE: CNR
