The African Continental Free Trade Agreement (AfCFTA), launched in 2018, was supposed to be an exciting example of multilateral cooperation against a growing tide of nationalism and protectionist policies.
Free trade - or trade with reduced government taxes - would have gradually reduced the cost of imported goods and services, allowing companies to pass savings on to consumers and provide demand relief.
Most importantly, with free trade, governments will have to forego the revenue that would have been gained through the imposition of import taxes (customs and excise).
Once the COVID-19 health crisis subsides, the ensuing economic crisis may well cause states to re-evaluate whether they can afford the tax impact of free trade.
As global political and trade relations regress, Africa could be the unlikely model of cooperation, pushing back against nationalism, and positioning the continent to reap the benefits of a recovery.
