Boosting African Economy with AfCFTA

Chapter 1: Introduction

Background information

African Continental Free Trade Agreement (AfCFTA) agreement rectified in 2018 has been lauded as a huge step by African continent towards economic liberation. World Bank places the impact of the full implementation of the agreement at boosting income of more than 68 million Africans, lifting more than 30 million out of extreme poverty, increasing exports mostly in manufacturing by approximately $560 billion (World Bank, 2020). The impacts goes further into bringing the gender socio-economic disparity by spurring large wage for women, that is projected would be 10.3 per cent compared to a slight lower, 9.9 per cent for men. The agreement informed by need to create a single market for good and services within Africa as well as facilitating movement of people is perceived as a step towards opening the continent to internal economic and social collaboration. The continent that is home to more than 1.3 billion people, majority being in below age of 35 years, is set to benefit from economic integration of its member countries. As pointed by Mawerere (2020), the apex of economic growth uplifting the majority population languishing in poverty is pulling resource together among people sharing similar challenges and vision. The proponents of the agreement view this as an imperative moment for collaborative action that not only allow African countries to conduct business among each other but also strengthening economic ties and resilience. The estimates by World Bank indicate that tariff liberalisation proposed by the agreement would increase the continent’s income by 0.2 per cent only by itself. Moreover, the gains of adding trade facilitation that include establishing and implementation of measures aimed at reducing red tape, simplifying customs procedures, and setting structures supporting integration of the supply chain system to other global systems will ultimately enhance the income gains by more than $290 billion. Collectively, the agreement presents a huge potential for reshaping the limited socio-economic aspects in the continent. According to World Bank (2020), if the agreement is fully implemented, the continent is set to boost its income by $450 billion by 2035. This a 7% increase from current estimate. It further outlines a $560 billion increase in exports and boost in wages by approximately 10%.

However, these potential benefits bestowed on the agreement largely dependent on the efforts by the countries both political class and socio-economic structures (Tavares, 2019). With a combined $3 billion trillion Gross Domestic Products (GDP), full implementation of the agreement offers a huge opportunity of businesses by creating necessary enabling environment (Shapshak, 2019). According to Barnekow and Kulkarni (2017), African nations have historically had little traded among themselves while largely relying on international trading collaboration. Critics of this approach have argued on its sustainability, holding that most of trading partners do not have African interest at heart rather driven by financial profits. In hindsight, intra-Europe trading stands at 70% of traded goods, while in Asia it is 60%, and in North America, trading among member countries (Canada, USA, and Mexico) is at 50%. Whereas, in Africa, 17% of all trade conducted is among member countries (Songwe, 2019). This is significantly lower than other continents despite being the second most populous continent. Historically, the economic constraints faced by African nations and, to that extension, the people and limited financial power by business entities have hindered successful implementation of policies. Arguably, creation of a successful continent-wide market and trading platform demands more than coming up with policies and agreements among the member state, although it is a major step, but goes beyond having wide spread efforts incorporating legislations, regulations, and importantly socio-economic measures bring people’s consumerism in line with available goods and services (Pool et al., 2012; Wolfe, and Dilworth, 2015; Mawerere, 2020). Due to diverse challenges facing the African continent ranging to conflict, wars, low technological uptake, lowing identity, weak infrastructure, and abject poverty levels in some areas, the income disparity and thus economic purchasing power differ makes doing business across the continent relatively challenging. However, the fact that Africa account for only 2% of global trading, opens a huge opportunity for intra-continental trading and potential for export (Kende-Robb, 2021). Africa, particularly West Africa, has the highest number of citizen who lives below poverty levels (World Bank, 2020). As such, given the huge socio-economic disparity across the Western African regions, it begs the question of whether the ambitious vision of attaining economic self-reliance and trading among nations countries across the continent and within the region is attainable, and to what extent do these changes related to poverty, unemployment, low purchasing power, and rampant corruption affect full implementation of the agreement. Similarly, the proposed provisions give a lifeline to avenue of conducting business and possible transformation promoted by manufacturing, good productions, jobs creation, and promoting competitive business model. However, for the proposed approach to be a success, a fundamental component is addressing the diverse needs of each community, nation, and region across the continent.

Africa is one of the most diverse continent measured by religious beliefs, traditions, social norms, political views, ethnic groups, languages, and weather patterns (Maroyi, 2017). Conglomeration of this diversity for attainment of shared goals in economic prosperity and poverty eradication is easier said than done. Fundamentally, socio-economic change need to be anchored on shared elements, and then driven common goal among the community in question. As such, it raises the question of how the agreement is going to bring people together given diverse nature of the continent, the different point of economic growth, level of education, different beliefs and political ideology, and huge disparity in purchasing power.

Research questions

What are the key social and economic impacts of fully implementing AfCFTA on the maritime industry in the ECOWAS region?

What are the barriers to full implementation of AfCFTA in the ECOWAS maritime industry?

Research objectives

To critically review literature on regional interrelations, driving factors of inter-corporation

To investigate the key factors informing formulation and establishment of African Continental Free Trade Agreement (AfCFTA)

To examine barriers that would limit full implementation of the African Continental Free Trade Agreement (AfCFTA)

To conduct empirical research on influence of socio-economic on implementation of African Continental Free Trade Agreement (AfCFTA) on the maritime industry in the ECOWAS region

Chapter 2: Literature review

Historical background

The history of African Continental Free Trade Agreement (AfCFTA) goes back to the formation of Organisation of African Unity (OAU) in 1963. The idea of forming OAU then was founded on minimising reliance by African and her countries on Western nations and, then just former colonies. According to Bereketeab (2014), the focus at the time for most if not new African nations, who had just gotten independence, was promoting self-reliance amongst the country nations and within the region. Murithi (2012) highlights that first step to absolute independence from the colonial masters were going beyond just political freedom but also being about to support oneself and each other economically. The founders of the organisation, according to Okhonmina (2009) and Langerud (2016), perceived unifying African continent as a way of uplifting Africans from poverty and fostering inter-country trading activities among nation countries. Kwame Nkrumah, the first president of independent Ghana and big advocate of unified Africa, held a strong need for African nation to cooperate and work together in order to prosper economically, politically, and socially was through establishing a continent-wide cooperation that would be driven by self-determination. The consolidation came in the name of Pan-Africanism movement and later, in 1963, delegates from 32 African independent countries congregated in Addis Ababa, Ethiopia (Maluwa, 2012). The outcome of the meeting was agreement to form an organisation founded on the aim of unifying and fostering solidarity among African states, coordinating and intensifying cooperation and efforts to bettering the lives of Africans, eradicating all forms of colonialism from Africa, and promoting international cooperation. However, competing ideological difference among nation member states and continuing struggle for self-identify, governance, and sovereignty and among rising poverty across the continent limited achievement of outlined objectives. Among other factors, politically inclined reasons have been linked to ineffectiveness and ultimate failure of the OAU. During its nearly 40 years of existence up to disbandment in 2002, the organisation has been criticised of failing to uplift the livelihood, social integration, economic status, healthcare, and political harmony across the continent (Adogamhe, 2008; Okhonmina, 2009; Van Walraven, 2019). The cooperation among the Africa states reduced significantly, raging wars within member states increased drastically, and poverty levels among Africans was reported to be at its highest, and states continued with overreliance on former colonial powers. The remedy to this was dissolution and formation of African Union (AU) in 2002. Fundamentally, three pillars informed the union establishment: to promote unity and solidarity of African states; spur economic development within the continent; and promote international cooperation (Farmer, 2012; Makinda, Okumu, and Mickler, 2015; Frimpong, 2010). In attempt to achieve its objectives, the union establish a plan based on economic integration of the continent and coordinating and harmonising regional policies towards unified cooperation. Chief among them was creation of a trading agreement among African states.

Following a meeting in Kigali Rwanda in 2018 bringing together 44-member state out of 54 AU members, a resolution founded on trade protocols, customs cooperation, trade facilitation, and trading dispute resettlement was signed (Abrego et al., 2019). The agreement establishing AfCFTA was established with the following objectives, among others. First, creation of single market for goods, services, and facilitates movement of persons in push of expanding economic integration among the member states. Secondly, to create a liberalised market for goods and services across the continent. Thirdly, set foundation for movement of capital and natural persons across the continent to steer sustainable growth. Fourth, to set in place avenues promoting and geared towards gaining “sustainable and inclusive socio-economic developments, gender equality, and structural transformation.” According to the agreement, the nation states are required, among others specific objectives. to: eliminate progressively tariffs and non-tariffs that are barriers to trading; liberalise gradually trading in services across the continent; set cooperation measures on all trade-related activities, investment, trading competition, customs, and intellectual property rights among member states (World Bank 3, 2020). Although the agreement was reached and signed in march 2018, the country states are required to deposit their instruments for ratification. As of December 3rd 2020, only 32 countries had signed and approved ratification of the agreement. Currently, only Eritrea has not signed the agreement with all other 54 AU members signing it (Shaban, 2020). However, scholars have highlighted the opportunities presented by the agreement on fostering trading activities within the continent. According to World Bank (2020), AfCFTA, in full implementation has a potential of creating the largest free trading areas globally taking into account the countries (currently 54 signatories) that would participate. The result would be connecting more than 1.3 million people currently living in African continent. Moreover, the combined Gross Domestic Income of all member countries is valued at approximately $3.4 trillion dollars. Key aspects, as pointed out by Obeng‐Odoom (2020), is reshaping the markets across the region with reduction tariffs, enabling movement of goods and people, and improving sanitary standards and technical barriers limiting trading among across the continent. Figure 2.1 show the AfCFTA participating countries based on who have deposited ratified agreement (light green) and those who have agreed to the proposal. Notably, only Eritrea is yet sign the agreement.

African Continental Free Trade Agreement (AfCFTA) and Trade Liberalisation

According to Saygili et al. (2018), despite being a crucial driver for economic growth, sustainable development, and industrialisation in Africa, AfCFTA faces numbers of challenges spewing largely from structural supporting the implementation such as human labour, and financial need, as well as fears from tariff revenues losses, and uneven distribution of costs and benefits. Although some studies (Odijie, 2019; Ajib, 2019; Simo, 2019) argue on the prospect of setting flexible measures aimed at reducing fears held as well as exploring fair sharing of cost and benefits. Moreover, according to De Cordoba et al. (2006), reducing adjustment cost that includes transferring the shift income based on principled short-term costs of transferring resources, natural or human labour while trading between country states, is key in cutting down the mistrust and attaining long-term full benefits of the agreement. Abrego et al. (2019) contended that long-term benefits of trade liberalization lie especially among developing nations is acknowledging the gross and developmental disparities not only among the nation states but also citizens of each country state. Acknowledging the need for pulling resource together at continental level, Lungu (2019) and Songwe (2019) held that the change in level of resource that includes capital, labour, and land may become obsolete, unemployed, or require restraining. Such adjustments mainly occur depending on the nation’s economic and social state. However, one may argue that Western African countries, in particular are in also similar level of economic development, the social aspects differ widely owing to vast heritage and several tribes each with distinct cultural and social interactions. Such diverse social and cultural behaviours ultimately leads to differences in consumerism, perception of goods and services in the market, and trading behaviour that include spending behaviour. In hindsight trade liberalisation is core to attainment of the agreement’s inherent goals of lowering the trading cost and allowing consumers to access larger market products (Wacziarg, and Welch, 2008; Dix-Carneiro, and Kovak, 2017). The competitiveness exerted by having more products from different business entities and countries favours the consumers by placing advantage in the hands over a monopolised market. Moreover, according to Ahmed and Suardi (2009), increased importing lower cost raw materials and intermediate inputs has been projected to be beneficial by rising the competitiveness of downstream producers and promoting regional value chains. Nuetah and Xin (2017) hold a view that liberalising of trading at continental level and, even better, at a smaller regional stage such as West Africa allows firms and manufacturing industries to access the larger continental market, as well as being able to negotiated with other trading international blocks with reduced sanctions, and hence benefiting from economies of scale. With increased competitive pressures from other businesses across the continent accessing same market, consumers are set to benefit from better and higher consumer services relations as well as business efficiency. The downside to this trade liberalisation is that market consolidation. According to the study conducted by Khumalo and Tsegaye (2018) argued that proposal by AfCFTA agreement if full adopted would lead to market consolidation caused by the smaller firms exposure to stiffer competition. Going by argument by Park, I. and Park, S. (2009) on proliferation of regional trading agreements that might lead to ‘spaghetti bowl phenomenon’, some scholars highlight that the agreement can lead to trading diversion, suppression effects, and high cost of verifying rules of origin, hence limiting the whole idea of uplifting the regional collaborating trading and economical emancipation.

Regional Trading Agreements

Building from the economic standard trade theory grounded on four ideologies of the relationship between: relative prices and relative demand; production possibility and supply; effects of term of trade; and equilibrium between supply and demand, gaining comparative advantage especially in regional trading lies in not just having capacity and capability of producing goods and services but also consumer demand (Dal Bó and Dal, 2012). Mismatch in any of these variables especially having one country lacking both financial capability and technical expertise in production of goods and services can significantly undermine the whole regionalism. The threat is underpinned in having economic and social disparities among countries within the bloc, one having capacity to have a huge competitive advantage. Investigating the obstacles to the African economic integration process, Pasara (2020) based the argument on intergovernmentalism, neofunctionalism, and neorealism. Building on the intergovernmentalism where nation states, in a given situations and state with they have full control over, can independently and willingly cooperate with other governments for mutual benefits and common interest (Forbacha, 2020). In such scenario, the governments can set standards and conditions that have to be met by other party but fundamentally driven by shared interest. As such, according to Meunier and Vachudova (2018), the commonness ultimately overshadows the differences held. On the other hand, neofunctionalism holds a perspective that current integration are built on existing and previous relationship. Therefore, the shared variables such political, religion, traditions, culture, and economic status are driving forces behind establishment of new integration. In Western Africa, although ethnicity and cultural norms and traditions may vary, the shared issues as highlighted by such socio-economic problems as high poverty levels, economic deprivation, corruption, and unemployment affects citizens in nearly equally across all the member states. Historically, these problems go way back to pre-colonialism period and have persisted over time. Largely, these issues have been basis for informing establishment and implementation of policies and agreement such as AU and ECOWAS. As such, arguably, these shared historical problems with which individual nation state and population across the region have deep understanding of cause and effects. Neorealism ideological framework contended that power is the most importance and core elements in international relations. The framework purport that while formation of inter-country and regional relations, the building blocks goes beyond the such as aspects as uplifting citizens economic status and fostering inter-regional relationship but fundamental driven by power (Badmus, 2015; Ghica, 2013). The power can be either political or economic driven. Going by the ideology, the country forming the regional blocs will likely be wary on each other as struggle for power. In empirical sense, Africa’s economic integration challenges can be linked to diverging individualised interest, polarised benefits of the larger economies at the expense of power and smaller societies and economies, several cross-border tariffs, traditional trading models, and an unclear model of distribution of wealth (Pasara, 2020).

The benefits offered by the agreement such as boost of economic growth (market expansions, job opportunities, and lower unemployment rates) among member states, attractive trading conditions, and heightening products and service qualities would be severely curtailed by the regional governance and ideological match. Kissinger et al. (2011) accessing the interregional approach to sustainability in collaborative approaches, pointed on living equitably within a given limit and importance of recognising ecological interdependence and interconnectedness within and across the region. However, in pursuit of such coordination and collaboration, it is important to acknowledge the production, consumption, and policy decisions in any given country state as might lead to incremental ripple effects across the region due to connected productive ecosystems (Alfoldi, Clegg, and McGaughey, 2012; Kellogg, Orlikowski, and Yates, 2006; Malhotra, Agarwal, and Baalbaki, 1998). Additionally, ecological aspects that include consumer consumption behaviour, purchasing power, and productivity have a potential of derailing the regional trading activities due to supra-ecological linkages (Kissinger et al., 2011). According to Malhotra, Agarwal, and Baalbaki (1998) on heterogeneity of regional trading blocs focusing on the multicultural perspective linking the member states, the cultural diversity will continue to be a hindering factor in effort to establish and implement a regional coordination and cooperation. However, by viewing regional collaborative approaches as a system built on shared abstract and material culture although varying in degree, the commonness in shared values and interest in a biggest bringing factor (Börzel, and Risse, 2019; Roberts, 2012). Notably, the three major trading bloc North American Free Trade Agreement (NAFTA), the EU, and ASEAN have individual inherent difference in culture at individual country state. Nevertheless, the successes of each bloc in meeting principled objectives lie fundamentally on the shared interests, goals, and mission. Needless to say, as contended by Börzel (2016) and Fioramonti & Mattheis (2016), the supporting infrastructure in each bloc has been key to meeting stipulated objectives. According to Malhotra, Agarwal, and Baalbaki (1998), the principle idea of establishing regional trading blocs such as collaboration and coordination in trading activities is fundamental followed by trading arrangement but such alliances have to be supported by attributes of the people such as consumption behaviour, purchasing power, economic status, employment, and income. Given that more than half of the regional trading agreement globally notified to World Trade Organisation (WTO) remain inactive is worrisome. Research into reasons for such widespread failures indicate myriad limiting factors range from political, supporting infrastructure, to mismatch between signatory countries objectives and economic state (Meissner, 2016; Doctor, 2007; Aggarwal, and Fogarty, 2004). Research conducted by Meissner (2016) analysing the European Union (EU) and Association of the Southeast Asian Nations (ASEAN) free trading agreement found that EU strive to secure economic and regulatory power in entering trading agreement with Southeast Asia but had perceived such bloc as a cohesive bloc. However, the main issues arose from the mismatched EU ambitious vision for comprehensive agreements with diversity in culture, religion, political ideology, and social aspects of individual state. Arguably, EU, despite diverse ideological views and culture within member state, the founding principles underpinning on national stable institutions, functioning market economy, and acceptance of EU law and legal practices make the regional trading with the country state possible and a success. Without such elaborate institutional infrastructure to anchor trading visions, regional bloc agreement on collaborative and coordinative trading is likely to encounter ideological and practice clash (Rodrik, 2017; Pavlakovich-Kochi, and Morehouse, 2017; De Vries, 2018). According to Meissner (2016), the failure of EU-ASEAN interregional trading collaboration boiled down to delicate balancing between political and economic interests of the large EU and Southeast Asia regionals and specific country states. Similarly, investigating the unsuccessful free trading collaborations, Hamanaka (2019) linked lacking diplomatic collaboration between member states, complication arisen from difference in trading tariffs, and having several parallel agreements as three core limiting factors. In Sub-Sahara Africa, regional trading agreements proliferated immediately post-colonialism. The founding principles of these regional trading bloc such as Southern African Development Community (SADC), East African Community (EAC), Economic Community of West African States (ECOWAS), Common Market for Eastern and Southern Africa (COMESA), although each had own goals and objectives, all were characteristically informed by achieving economic prosperity. Brenton and Isik (2012) highlighted member states viewed promoting economic development and cooperation through regional integration and pulling resources together. In the past, these blocs went beyond economic objectives to incorporate the social integration, shared political ideologies, industrialisations, trading, reducing regional conflicts, and reducing poverty levels at both country and regional levels. However, performances measured by meeting core objectives have been seen to be below expectation in most case. Research has attributed these to below-potential market integration combined by diverse cultural backgrounds, and political factors (Asante, 2016; Fawcett, and Gandois, 2010). The failures of these regional trading blocs have been largely underpinned on the lack of capacity to engage fully in both internal and external trading.

Prospects of African Regionalism

Although, one can argue that the experiences gained before has not entirely a failed mission to liberate Africa from poverty and fostering economic prosperity. Hopkins (2019) postulated that previous successes and failures with trading agreements and regional integration approaches, such as incorporating country-focused policies, would work in favouring AfCFTA roadmap. Most scholars have been easy to criticise failures in having a successful regional trading collaboration but acknowledging the push to meet set targets by these blocs at domestic level has heighted (Farole, 2011; Acharya, 2012; Asante, 2016). As acknowledged by Sakyi and Opoku (2014), the major issues of faced by the regional integration was formulation and trying to implement ‘anti-market’, ‘anti-foreign’, and anti-private sector’ policies. According to Sakyi and Opoku (2014), the agreement reached in most cases lacked trust and faith with integrating other external entity to over countries affairs that include trading just after colonialism. Currently, trade agreement covers aspects beyond trading tariffs to incorporate multiple policy affecting coordination and collaboration such as behind-the-border regulations such as intellectual property right, procurement rules, policies governing competition, and inter-business relation. However, for AfCFTA, basing its focus on primarily the three potential effects of: income, welfare, and trade flows; second, tax revenues, and thirdly, income distribution and employment (Luke, and MacLeod, 2019). The potential increase in the income and welfare of population across the member state lie on reducing non-tariffs barriers (NTBs) (Luke, 2019; Parshotam, 2018). Examining the trade in services in AfCFTA focusing in particular on the prospects, challenges, and WTO compatibility, Simo (2020) argued that a shift by the agreement to incorporate both goods and services concurrently in conducting trade signalled a more and deeper integration in continent a coordination and cooperation. Accordingly, in full implementation, the agreement has a potential of making the region largest economic integrated bloc second to WTO. The COVID-19 pandemic has significantly reshaped the social, economic, and political structures of communities, societies, and countries across the global, Africa not an exception. According to Rutayisire et al. (2020) and Su & Shen (2021), the response to ravaging impact of the pandemic is grounded on changing political spectrum and social systems while creating new social norms. In addition to other challenges such as technological change, inequality, economic disparity, climate change, and conflict faced both in Africa and global, economic contraction particularly in the African countries highlight the urgent need of collaborative and collective approach (Umviligihozo et al., 2020; Gaye et al., 2020; Lancet, 2020; Ilesanmi et al., 2020). As pointed out by Ilesanmi et al. (2020) scarce resources in the Sub-Saharan Africa pose a great challenge in responding to the pandemic.

Economic nationalism in Africa

The inequalities both economically and socially across Africa highlight the bidding element that might bring people together. However, it should be noted that community and nations engagement is a multifaceted component subject factors as shared challenges, beliefs, cultural background, ideology, and social norms. These ingredients have to transverse national boundary for countries to unity at regional level. In Sub-Saharan Africa, nationalism was essentially built on health, housing, education programmes collectively aimed to transcend ethnic, traditional, and religious beliefs but natural resources such as minerals, oil, land, and forestry and fishing have become centre of focus (Kpessa et al., 2011; Nounkeu, 2020; Andreasson, 2015). According to Wegenast, and Schneider (2017), in areas where human resource is significantly underused and worrisome attainment of formal education and skills, natural resources that include agricultural and pastoralist land offer the only hope. Perceived encroachment by ‘outsiders’ tend to trigger conflict and wars. The resource-conflict goes beyond the natural resource available to encompass the limited opportunities jobs and lacking skills suitable for changing world. Resource ownership is one of several cause of conflict in Africa. Ideally, globalisation meant to solve the persistent issue of domestic challenges by collective engagement and pulling resource at a global scale. However, as point by Zhou (2021), the events of the last 18 months following outbreak of the pandemic suggest otherwise. Bieber (2020) and Lee & Haupt (2021) argued countries are inherently self-centred in matter ranging from trading, supply chains, fighting socio-economic challenges, and addressing political problems. Although China discourse of ‘Community of Shared Destiny for Mankind’ is meant to have a cooperative approach to addressing global challenges, the supply chain systems indicate limited proactive collaboration particularly with developing nations (Yang, and Chen, 2021; Guimón, and Narula, 2020). Study conducted by Reznikova et al. (2018) on correlation of economic nationalism and political ideology argued that the two concepts shape public opinion and in turn informs policies and cultural beliefs. The advocacy of national-centric approach and anti-immigration policies as well as popularity of Eurosceptic tendencies in economic debate highlight the long explanation of nationalist reasoning. The rise of far right in India, Brazil, the US, and the UK indicate an inherent tendencies of nations to place their individual interest before others disguised as economic reasons and cultural values (Gülseven, 2021; to Heinisch et al., 2018). The argument posited by Ausserladscheider (2019) indicate economic insecurity such losing their livelihood, jobs, and business opportunities lead to communities, societies, and nations instituting a strong ideology informed by resistant to change or accommodating ‘outsiders’. This ‘far-right’ cohort tend have insecurities stemming from economic crisis, new economic regulations and policies, transformational agenda, restructuring traditional structures, rise of technology, and deindustrialisation (Halikiopoulou, and Vlandas, 2019; Margalit, 2019; Bahry, 2016). The result is formation of cultural and political ideology aimed at resisting change. Response to not only the pandemic caused by the coronavirus but also climate change, feminine, conflict, genocide, and chronic poverty has, historically, lacked a united front. Africa has always been left out. The rise of populism, nationalism, and protectionism in countries such as the US, Mexico, Poland, Turkey, and the UK whose ideological beliefs are pegged on own national affairs and cohesion among individuals with shared commonness and being hostile to those who threaten them, has given more countries especially in Africa to rethinking national and shared goals (Givens, and Mistur, 2021; Su, and Shen, 2021). Arguably, for most, this has opened a jar for collective engagement and collaboration among other regional countries who among other things share geographical borders, and challenges.

Research Gaps

The literature has largely focused on the prospect implementation of AfCFTA that include the benefits to be gained in full adoption of the agreement. Although some have explored the challenges in meeting the resolution using roadmap drawn by previous regional agreements and trading blocs, little has been done in regarding to the influence socio-economic variables in realising the objectives of creating a single market for goods and services across Africa. In particular, the focus has been largely on political instability, infrastructural aspects, power struggles, legal issues, and economic deprivation across the continent as main limited factors. Little research has been done on influence socio-economic variables, particularly the Western Africa within the ECOWAS region, on implementation framework and realisation of goals.

Chapter 3: Methodology

Introduction

Fundamentally, the building block of a research is filling the missing gap through correlating existing findings with those under investigation. This is achieved through having a systematic framework in which the ideologies, beliefs, and views can be expressed in a coherent and logical manner. Hence, the essence of methodology. Kumar (2018) defined research methodology as a strategy underpinning the reasoning for carrying out the investigation. In this case, it outlines the process in which the researcher uses to answer the question on social and economic implication of implementing AfCFTA to ECOWAS region. Ideally, building from the assertion made by Flick (2015), achieving the objectives effectively while solving the problem satisfactorily require having an outlined strategy, procedure, and process of tackling each segment step-by-step.

Research Philosophy

O’Gorman et al. (2014) described research philosophy as an ideological framework in which beliefs and views of a research problem in are based. It shapes the knowledge acquired from solving the problem. According to Saunders et al. (2015), the basis of ideological framework in a research is having a modelled approach in sourcing, nature, and development of knowledge. Ideally, a research is founded on investigating a problem, seeking solution, and then ultimately gaining knowledge in a particularly field. However, this process need to be founded on prior thinking and held views (Sahay, 2016; Saunders et al., 2019). The reality and nature of the knowledge can be subject to assumptions held on various components in a society and how people perceive things around them. Saunders suggested ideological frameworks such as pragmatism, interpretivism, realism, and positivism. The pragmatists argue that there are many different angles of viewing the world, a scenario, for one to develop a holistic perspective. According to Morgan (2014), one cannot have a full picture of a phenomenon without having entire point of view. The concept of multiple realities means people in a given societies have a different perspective and thus understanding of even a trivial scenario (Kaushik, and Walsh, 2019; Parvaiz et al., 2016). Understanding influence of economic policies requires looking at various performance indicators ranging consumption per capita, population growth, purchasing power, gross national income, etc. Taking infrastructural development only will not give a full picture rather a confided view. Development of road network, railway, and telecommunication infrastructure is not a measure of economic growth particularly when unemployment is high, GNI is low, and purchasing power of majority is low. On the other hand, positivist argue that only scientifically provable data should only be taken in knowledge development. According to Mkansi and Acheampong (2012), the ideology is grounded on the ‘factual’ knowledge that is observable, quantifiable, and analysed statistically. Therefore, its proponents hold that in conducting a research, the focus should be on the components that are quantifiable rather than people’s opinion (Park et al., 2020; Hasan, 2016). For instance, economic growth in a nation is measurable by performance of economic indices such as GDP, GDP per capita, employment rate, and productivity, which individual are quantifiable.

Unlike positivist perspective, interpretivist argue that access to the truth and reality depends on individual interpretation of variables and components informing a phenomenon. Reality is a socially construed elements stemming from shared beliefs, consciousness, traditions, norms, and language (Alharahsheh, and Pius, 2020). In knowledge development, one must delve depth into core building block of a scenario and not just take a surface meaning. However, as pointed by Chowdhury (2014), individuals observing similar scenario might hold a differing inferences due to each interpreting the meaning differently. As such, reality is not always as it seems but rather is a multi-layered and complex element. In conduct an investigation involving social components, one should keep in mind that a scenario can be interpreted in a multi ways (Pulla, and Carter, 2018). For instance, implementation of an economic policy focusing on infrastructural development that including expansion of road networks, access to electricity, and building railway tracks might be seen by one individual as an indicator of growth. On the other hand, another individual might argue that incorporating a framework enabling employment of local community hence empowering them is a sign of success. Moreover, different communities such like individual have different level of needs. An individual without basic needs such a water and medical health consider access to drinking water and healthcare imperative than having an electrified railway network. Therefore, impact of economic policies is a multifaceted element. Due to different level of individual and community needs, degree of influence felt might vary considerably. Therefore, in this study, in order to have a holistic impact of AfCFTA agreement, one must look into the fact that African nations have different interest, varying level of priorities, and ideological difference. Despite holding a shared need to end poverty, wars, neo-colonialism, overreliance of foreign aid, and gain economic and political independence, most countries across the continent have difference in fundamental ideology, urgency, and vision. Building from an assertion that nationalism is a complex element building on communities’ inherent interest, views, ideologies, traditions, and history, success implementation of a regional agreement also have multi perspectives. Arguably, measure of implication of economic policies ultimately depends on the individual interests, needs, and priorities. Therefore, an interpretivism approach is taken.

Research Method

Punch and Oancea (2014) described research approach as a procedural plan comprising of the steps detailing the data collection, analysis, and interpretation. Common research approaches are qualitative, quantitative, and mixed method. Plonsky (2017) illustrated that a quantitative method entails collecting quantifiable data then expressing the solution to the research problem statistically. According to McNabb (2015), collecting measurable data the analysing mathematically gives a view of trends, differences between variables, extent of influence a variable has over the other. For instance, one can measure statistically the influence an economic policy implemented by a government through obtaining the unemployment rate, GNI, and purchasing power of a countries. As such, the positive trend on unemployment might signify that the policy is a success if it was meant to create employment opportunities. Similarly, national productivity largely measured by GDP captures the market value of goods and services within a country. A positive increase following policy implementation indicate intended impact. On the other hand, qualitative method delves deeper to understand on how and why a variable behaves the way it does. It provides an insight of the influence of variables on a scenario by analysing and providing understanding a meaning subjectively (Fassinger, and Morrow, 2013; Hammarberg et al., 2016). Hennink et al. (2020) illustrated that qualitative research collects and interpret non-numerical data aimed at having a deeper understanding of concepts, opinions, observation, and findings. Answering effectively the questions of why an economy is performance as it is require delving deeper than surface trends and numerical indicators. In this case, AfCFTA agreement is grounded on improving intra-African trading and export, strengthening regional cooperation, and increasing employment and investment. In order to understanding its social implication, one need to explore the underlying principles of each society and gather an insight through opinions and views of each member on ways they perceive the policy. A mixed approach incorporates both the qualitative and quantitative methods in answering research questions (Wilson, 2016). In this case, it would capture the trends of economic indicators while also exploring the influence on underlying social elements based on people’s opinion and views. This study carries two point of view: the economic and social impact of AfCFTA agreement focusing on ECOWAS region. In order to have a full scope of the influence on implementing the agreement, both quantitative and qualitative method is taken. The quantitative part captures the statistically measureable aspect of the implication such as economic growth, trend on income, productivity growth, and trading trends while qualitative aimed at having deeper understanding on the impact of the agreement on the countries and communities in the region. In order to developing an insight, it is imperative to explore underlying factors of socio-economic implication.

Data collection

Sutton and Austin (2015) illustrated data collection as procedure of gathering data for analysis towards solving the research problem. Data informs answers to the research questions, whereas the collection outlines a systematic process that ensures the captured data and information are accurate and relevant. The collection process can either be primary or secondary. A primary data collection involves gathering data directly from the participants who engage with researcher directly (Fallon, 2016). Several tools that include survey, questionnaire, interview, experiment, and observation are commonly used (Wilcox et al., 2012). On the other hand, secondary data involves using existing data to answer the research question (Johnston, 2017). Here, the researcher is not directly involved in collection but rather use data already collected from previous studies, institutions databases, and government undertakings such as census. For this study focusing on the influence of AfCFTA on socio-economic aspects within the ECOWAS region. Notably, the agreement is current in ratification stage and its yet to be implemented. Therefore, there are not comprehensive data capturing the impact it has had. While some institution might have a perceived and projected trends, it is not based on concrete data. Based on this, primary data will be used. The data will be founded on engaging directly with the respondents. A questionnaire structured to capture socio-economic impact the agreement holds in context of western African trading block, provides a platform of delving in underlying factors while of the measurable elements. The questionnaire, which provide convenient and easier way to reach out to wide respondents, captures the social impact and economic influence the agreement has and will have to the ECOWAS region. Importance of using a questionnaire goes beyond efficiently but covers an effective way of measuring preferences, capturing opinions, behaviour, and perception on respondents. In this case, an online questionnaire was used.

Sampling Process

A research population for this study incorporates the larger ECOWAS region. The respondents, sourced from the 15 ECOWAS member states, are sampled purposively. Given that the study focus on the socio-economic impacts of the agreement, the assumption held in sampling process is that not all individuals living within the regions have adequate knowledge and understanding the implementation will have to social and economic aspects. Therefore, based on this assumption, a narrowed population sample incorporate individuals with prior and ardent knowledge of trading agreement, social development, economy, socio-economic development, and regional relationship was sampled. Hence purposive descriptive sampling method used. A hundred and fifty participants were invited to participate.

Data Analysis

As described by Heeringa et al. (2017) data analysis entails transformation of gathered data into useful information. The process involves inspecting, cleaning, transforming, and interpreting gathered raw data into information useful in decision making and drawing inference. In a quantitative research, descriptive analytics tools such as SPSS are commonly used to depict the trends, statistical, and numerical aspect of a problem under investigation (Nassaji, 2015; Mertens, 2017). Whereas qualitative research synonymous with exploring to understand the underlying factors and providing an insight into research problem, is largely analysed using content analysis, narrative analysis, interpretive phenomenological analysis, and thematic analysis (Sgier, 2012; Grbich, 2012). Each of these tools, both for qualitative and quantitative research method, is usefully applicable based on context and content of data. Within this study, descriptive analytics tool is used to capture the quantifiable part of the impact. While, thematic tool used to make sense the opinions and perspective held by the respondents. Thematic analysis involves drawing pattern and themes from the opinion held by participants regarding the socio-economic impact of the agreement. These patterns then inform drawn inference and conclusion made.

Chapter 4: Results and Discussion

Introduction

As stated, online questionnaire was employed in collected data for this study. Potential participants were invited via social media platforms (WhatsApp, Facebook, Instagram, and Twitter) to fill the questionnaire hosted on Google form. As part of ethical considerations, all the potential participants were informed of their right to privacy that include not providing any identifiers and assurance of upholding any private and personal information captured mistakenly. Moreover, the consent letter signed before proceeding to answer the questions included voluntary participation and withdrawal at any stage with requirement to give reasons why or apology. The questionnaire (Appendix 1) had 20 questions covering participants demographic, knowledge on Africa and ECOWAS regionalism, awareness AfCFTA agreement and objectives, and opinion held on influence of the agreement on social and economic aspects principally in ECOWAS region. Although this study aim had intended to capture the views of 150 participants, 137 responded by following the provided link.

Results

Demographics

Hundred and two participants (75.6% of respondents) were male while 27 being female. Six respondents preferred not to indicate their gender. From this, the findings leans heavily towards male perspective of social and economic influence of the agreement. Given the historical gender disparity in the continent ranging from low number of female enrolment to learning facilities, mismatch in employment sector, and overall gender inequity in economic sector (Baten et al., 2020; Heise et al., 2019; Makama, 2013), the findings highlights general male prevalence in socio-economic arena in the region.

The significance of having an age distributed population in a research is having a generational view of the variables in question. From Table 4.2, the participants age group distribution ranged from 19-24 to above 60 years. Whereas the major of the participants (55 a representation of 40.4% of the respondents) had age range between 25 and 34 years. Those in the 35-44 age group were 49 participants (36% of the respondents) while 23 (16.9%) indicating belonging to 45-60 age group. Only two participants indicated being above 60 years in age. Ideally, this participants group captures the youth’s perspective (those between 19 and 35 years), the opinion of individuals in a mid-age group (36-55), and older generations (above 55 years). Therefore, the insight on the regionalism particularly towards community cohesion and socio-economic development can be based on historical experience and future hopes. It is worth noting that western Africa population is predominantly young (McLean, 2020).

In marital status, the responses captured statues: single, living with partner, married, and separated. Ten participants (7.4%) stated being single, 51 (37.5%) saying they are married, and 10 (7.4%) indicating separated status. The majority of the participants said they are living with partner. These highlights the hierarchy of social and economic view in a society. Arguably, unlike single individuals, an individual with a family might view and feel heavily the burden of economic shrink because of the dependant they have to support. Comparatively, the economic socio-economic decision making of the two cohort might vary with individual with dependent being concerned with welfare of a wider group. On employment status question, majority of the participants (48.9%) said they were self-employed while 44 (32.6%) saying they are entrepreneurs (Table 4.3). Fourteen participants indicate they were employed while only 11 (8.1%) picking unemployment status. Although the unemployment is generally considerably high in the ECOWAS region (Azu et al. 2021; Yamben, and Asaah, 2020), this study focused on the expert in the different fields with advert knowledge of regional cooperation and business world hence low number of individuals claiming unemployment.

Similarly, the responses on education level saw most respondents (52 participants) pointing out having attained university degree. Thirty-two held a secondary education certificate while 47 having college level as their highest education level. The participants with post graduate degrees were 5 while no one had primary or lower education. Indication from this is that majority is not all respondents are knowledgeable and understanding of business, economic, and social surrounding as well as basic principles in socio-economics. Principally, in order to have an insight to the influence of the agreement, one needs to have basic knowledge and understanding of core variables of economics and workings of a society. For instance, opening up country borders for inter-trading would trickle down the benefits to availability of goods and services at local shops, health centres, learning institution, as well as increasing business activities at farming level. This cohort brings such insight to better understanding the socio-economic influence of regionalism.

The questionnaire further incorporated a question on the current country of residence. One requirement for participation was participants must be from and currently residing in the West Africa. The reason behind this was to provide a deeper perspective from an individual who has experienced or seen firsthand the socio-economic variables. Ghana and Nigeria had the highest participants (30.1% and 18.4%) respectively while Benin and Sierra Leone had none. All the other countries in the region had participants who resided in in the time of conducting the research. As such, views from individuals across the member country was taken into account.

As part of demographics, the questionnaire included a current occupation question. Table 4.5 highlight the current occupation as indicated by the respondents. Majority of the participants (38) identified as business persons followed by those 26 participants saying they are strategists. Other occupations ranged from investors (6), innovators (4), politicians (4), social organisers (7) to farmers who 16 participants said they were. Significant of this group diversity is having a wider and different from perspective the influence felt from regionalism.

Figure 4.1 shows graphically the occupation distribution of the participants. From the figure, those identifying as innovators and politicians (both 2.9%) were the smallest group while business persons (27.9%) had the highest followed those who identify as strategists (19.1%).

Exploration of Resources

On the question of exploration of natural resources, the 73 participants who are majority held that the process was satisfactory (Table 4.6). With only 3 participants holding that the process was ‘very good’, the rest were of the view it was ‘poor’ (33 participants), ‘disappointing’ (6 participants), and 20 participants saying ‘a lot need to be done’.

For a long time, African continent has been considered as richest in term of natural resources (oil, gas, land, and minerals), however, it remains poorest globally (Mekoa, 2019; Henri, 2019; Zhou, 2017; Frynas, and Buur, 2020). Dubbed ‘resource curse’, the difference between inflows from extractive sector and revenues going to the government, micro-economic sector, and social aspects is huge to the extent of experience negative effects such as internal wars, conflict, coups, and genocides. Scholars have point to several factors to disparity between resources and growth. These include; colonialism, international influence, lack of skilled labour forces, corruption, poor leadership and governance, and poor infrastructure. Despite the challenges faced, most countries acknowledge that extensive reforms are need to transform the industry.

The misconception of disingenuous and intellectually deficient held by some scholars (Zallé, 2019; Henri, 2019; Parcero, and Papyrakis, 2016), has been refuted in favour of the paradox of plenty where countries with abundance of natural resources (Nigeria, Zimbabwe, Ethiopia, Ghana, and Republic of Congo (DRC)) experience less economic growth compared to those with few resources. The problem, as argued by Zhou (2017), stems from declining competitiveness of other economic sectors, overreliance of the natural resources, weak and corrupt institutions, exposure to fluctuating international market, and resources mismanagement by government. Combination of these factors results complex intertwine of natural resources, poverty, conflict, and underdevelopment. Poverty and inequality are a result of conflict and underdevelopment as they are their consequences (Zhou, 2017).

Cause of Languishing Poverty Levels in Africa

Africa, as a continent, has the highest number individuals living in extreme poverty accounting for two-thirds of global extreme poor population (World Bank, 2020). Despite the efforts made at country, continents, and international levels, the fight against has seen slow progress with estimated decrease by 1.6% between 2015 and 2018 (World Bank, 2020). In 2018, 40% of the population in sub-Saharan Africa lived below poverty line (earning less than US 1.90-a-day). The question of why majority of population in the continent continue to languish in poverty saw the respondents pointing to such elements as corruption, poor leadership and governance, lack of financial resources, lack of strategic framework, and failure to modernise through adoption of innovative and advance technology (Table 4.7). The participants who blamed corruption were 118, accounting of 87.4% of respondents, then followed by 109 participants saying poor leadership and governance is the main culprit. Lack financial resources that would support investment and micro-economic enterprises was blamed by 83 participants while 54 holding modernisation as main factor dragging the continent effort to eradicate poverty. Surprisingly, only 15 participants (11.1%) identified strategic framework main cause of the problem (Table 4.7).

Figure 4.3 shows graphically the poverty enablers in sub-Saharan Africa as identified by the participants. It is worth noting that poverty eradication is a multifaceted component, and cannot be captured under five factors undermining its eradication process. The complexity steaming from conflict, droughts, education, policies, historical enslavement of young workforce, systemic injustices, colonial history, to postcolonial dependence on western countries are some of the attributing factors (Kubzansky et al., 2019; Dang, and Dabalen, 2019; Omomowo, 2018).

Challenges Faced within ECOWAS Region

Table 4.8 captures the responses given by the participants on the question of socio-economic challenges faced within the ECOWAS region. From the table, majority off the respondents pointed to corruption and poor infrastructure as the main challenges. Those holding former were 114 representing 83.8% of the respondents while 112 (82.4% of the respondents) said to the latter. Poor policies and economic framework was pointed out by 85 participants (62.5% of the respondents). Whereas, participants who held that poor leadership and governance, modern colonialism, lack of innovative and technology-driven approach were main challenges holding the region from attaining development goals were 68, 61, and 63 respectively. On the other hand, low literacy levels and lack of visionary leaders was highlighted by 24 (17.6%) and 35 (25.7%) participants respectively.

Although the challenges and their degree may vary across the region, such problems as corruption is a widespread to be point of being considered chronic. Transparency International (2020) ranked Cabo Verde as least corrupt country in the region despite being appearing 41 globally while Guinea Bissau ranked the most corrupt country scoring 18 in corruption index. Nigeria, the last economy in the region, came second scoring 26 followed by Guinea with a score of 29. Scholars have noted pervasive influence of the colonial powers (France, England, and Portugal) and neo-colonialism in controlling the social, economic, and political spheres of the member states (Langan, 2017; Brino, 2018; Fanso, 2020). Such influence undermining the independence and effort to churn own future path socio-economic liberation. Research has also linked underdevelopment to unemployment, food insecurity, instability and unrest (Liberia, Niger, Nigeria, and Sierra Leone) (Khalid Anser et al., 2021; Okafor, 2017; Fanso, 2020). Other researchers have argued in perspective of population explosion, diseases, inequality, and state capture as underlining problems in most countries in the region (Osabohien et al., 2020; Adeyeye et al., 2021). From the responses, socio-economic challenges faced by ECOWAS member states ranked from low literacy to poor leadership and corruption.

Importance of Inter-Regional Cooperation on Developmental Growth

The questionnaire included a question on importance of regionalism seen from socio-economic development. The responses captured in Table 4.9 show that majority of the respondents leaned towards collective and collaborative in investing and use of resources, enabling inter-trading among member states, and reducing trading tariffs as major influence. The participants who indicated pooling resources collectively as a region were 105, representing 77.2% of the respondents while enhancing inter-trading and removing barriers informs of tariffs was pointed out by 94 (69.1%) and 88 (64.7%) respectively.

As shown in Figure 4.5, other importance held by regionalism as perceived by participants include exchange of labour and services (47.1%), regional stability (40.4%), higher employment opportunities (32.4%), and sustainable collective growth.

In addition to bring resource together to fight common challenges traversing the borders such as banditry, intercommunity wars, drought, feminine, and pandemic, Keating and Wilson (2014) observe that forming a bloc whether politically or business motivated hold an effective way in dealing with runaway corruption, increasing political power for common good, and influence through self-determination as a people with shared values and views. According to Murray-Evans (2015) and Grevi (2018), a bloc of countries has a better negotiating power than an individual seeking self-determination particularly from colonial masters. Moreover, combined forces during a business negotiation ultimately results in better terms. Börzel and Risse (2019) argued that countries with common and shared problems can bring resources both human and financial together aimed a tackling together under a united front. For instance, sub-Saharan Africa is heavily burden by poverty, corruption, and poor governance. Therefore, coming together of countries with shared vision of eradicating and liberation the continent through combining ideas, resources, and willpower have a better chance of success than an individualistic approach. Additionally, regionalism is not just recognising shared boundaries but acknowledging deeper and historical values, norms, and traditions held by neighbouring communities (Meunier, and Vachudova, 2018; Asante, 2016). These history and traditions brewed from common challenges means having better and deeper understanding their causes and consequence. Within the local communities and people can formulate solutions built on concrete ground. In practice, as evidenced in Asia-Pacific trading bloc, European Union (EU), and North America Free Trade Agreement (NAFTA), regional trading bloc plays a critical role in movement of goods and services across country borders within member states (Telò, 2016; Geda, and Seid, 2015; Cadot, and Gourdon, 2016). Occasionally, the agreed upon terms are founded on free movement of goods with no tariffs, taxation, or other restriction. These not only ensures availability of goods and services across the region but also cheaper, wider market, competition, and higher quality.

Awareness of AfCFTA objectives

The participants were answered whether they were aware of the objectives stipulated out by the agreement. The responses, as captured in Table 4.10, show that 85.6% (113 participants) said yes, while only 12 saying no. Seven participants indicated ‘maybe’. These is an indicative of extent to which the agreement is known to the participants and, by extension, people in the region. One can argue that the agreement, its objectives, and goals are well known, and hence one step to impacting the inherent changes alluding the region.

The questionnaire further asked the participants whether they believed that outlined goals by the agreement would lead to improvement on socio-economic status across the continent. Hundred and seventeen participants held that it was, 10 saying maybe, while only 5 indicating it will not (Table 4.10). Principally, the agreement in founded on eliminating trade tariffs that in turns make it easier for trading among member countries. The growing market within the continent as well as establishing sanitary standards are steps towards having a consolidated and conducive business environment, increasing jobs opportunities, and availability of cheaper goods and services that are locally sourced. In hindsight, majority believe on the agreement would enhance support and commitment both at the top and bottom collectively. Hence, a recipe for successful implementation.

Influence of AfCFTA

A follow up question on how they believe the stipulated goals would be a pillar towards developmental growth in the continent was asked. The participants’ responses ranged from enhancing innovation, improved quality of services and goods, to reduced barriers for doing business across the continent. Table 4.12 show the participants responses. Reducing trading tariffs across member country ranked highest among the participant with 120 (90.2%) saying it would. Those who held that the agreement would promote single market for the products were 103, a representation of 77.4% of the respondents. Eighty-one participants (60.9%) identified a view that it would facilitate cross-border movement of goods and services while 71 (53.4%) highlight promoting local market. Fifty-one participants held that the agreement is essential in promoting and use of innovation to improve quality while 40 participants noting the creation of conducive environment in which businesses would be conducted (Table 4.12).

Ideally, trading blocs are driven by establishing common and shared regulations meant to enhance business interaction among signatory members. Depending on the teams agreed upon, governments with shared interests of enhance business activities could enter into an agreement removing barriers such as tariffs and regulations that would otherwise make it difficult to trade within the given jurisdiction (Nasir, and Gollagari, 2020; Csehi, and Heldt, 2021). For instance, EU agreement allow movement of goods, services, and labour force across the bloc freely while the NAFTA eliminate tariffs on agricultural produce and manufactured goods across three signatory countries: the US, Mexico, and Canada. Similarly, the AfCFTA is principled on removing and making easier for African countries agreed to the terms to conduct business among themselves. According to Bongardt and Torres (2018), in addition to allowing free movements of goods, business persons, and investments, the agreement aims to harmonise and coordinate regulations and standards across the member states, which are huge steps towards a liberated business environment. As pointed by Bobowski (2017) and Omoshoro‐Jones & Bonga‐Bonga (2020), availability of cheap and high quality goods, enhance investment power, and increased job opportunities are recipe for socio-economic development.

AfCFTA fight against poverty and unemployment within ECOWAS region

On the questions of influence of the agreement on poverty eradication and reducing unemployment. The question was based on view that eliminating the two factors is fundamental step to socio-economic liberation. The responses captured in Table 4.13 indicate approximately 94% of the respondents holds that agreement in significant in fight against poverty and reducing unemployment particularly in the ECOWAS region. Only 2 participants held a view that it had no influence or would be disappointing. It is worth noting that emancipation out of poverty requires a multifaceted coordinated approach, however, participants place huge hopes on the agreement a liberator against inherent challenges leading to poverty.

Social Influence of AfCFTA

The responses to the question on how fully implementation of the agreement would impact social fabric of the people living within the ECOWAS region is capture in Table 4.14. More than 90% of the participants said the agreement would set framework for collective approach to addressing shared challenges in the region. Those believing it would inform the basis for in depth understanding of challenges were 101. Ideally, a regionalised perspective means delving to root cause of the problem then formulating solution based on findings. Rather than taking a collective point of view to problems, each community within a country can place their unique challenges in the table (Rekiso, 2017; Oloruntoba, 2018). For instance, international community might partake solution of poverty as due to corruption and low literacy ravaging the continent hence providing a short-surface solution. Engaging the stakeholders at a local stage provide a platform for long term and lasting solution.

The participants further highlighted using local and innovative driven solution. Those with that view were 67. The use of local resources in addressing the problem not only enhance the engagement and collaboration among the stakeholders but also provide platform for employment and investing on and of the resources. According to Obikaeze (2021), integration advocate by the regionalism that would be realised on full implementation highlight its potential. Countries have realised coming together liberating and freeing the resources such as labour force (youths and women) to be part of economy as both producers and consumer is integral to the socio-economic growth (Mucuuthi, 2020; Nalule, 2018; Mattheis, 2020).

Using regional agreement to solution socio-economic development

The participants were answered if think regionalism would be a lifeline solution to shared problems such corruption, low literacy levels, poverty, healthcare, and unemployment. The responses captured in figure

The birth of these trading blocs came just post-colonialism when newly independent countries were struggling among other things, sovereignty and self-identify, not to mention political class and widespread poverty levels across the continent (Grant, 2017). To some, development of free movement of goods and people across borders would limit little available employment and businesses opportunities (Bach, 2015; Lucia, 2018). Although, in accessing the steps made and thoughts behind formulation of AfCFTA as a new attempt to bridge trading and economic disparities across the continent, one should not forget the high poverty levels and lower purchasing power especially in Sub-Saharan countries.

Chapter 5: Conclusion

Regional trading bloc is perceived as a framework addressing shared interests through exchange and conducting business. Historically, such trading blocs as NAFTA, Asia-Pacific, EU, and ECOWAS was founded on reducing barriers such as tariffs and restriction of conducting business while enhancing quality and standardisation of traded goods. AfCFTA formation was driven by need to create free trading framework among member countries as well as ensuring cross border movement of goods and services faced little to none barriers. Standardisation of customs and regulations in one approach of achieving that. With collective goals of establishing a trading platform that would lead to growing local market, investment sources and avenues, and jobs opportunities. However, the vastness and unique traditions, norms, religions, customs, politics, goals, as well as socio-economic challenges across the continent raises the question of whether the goals are achievable and to what extent. In this study, it aimed at exploring the socio-economic impact of the agreement focusing on the ECOWAS region. To answer the research questions, it employed a mixed research method and primary data comprising of opinion and views of a sampled population. An online questionnaire was sent to 150 potential participants but 137 responded. The gathered data was analysed using thematic tool. Building from the observation made, regional bloc particularly the trading oriented, offer a framework in which member countries can table and articulate the individual and collective challenges. The outcome is a collective and tailored solution to inherent challenges. For most ECOWAS member countries, inherent problems stemming from socio-economic that include poverty, education, corruption, inequality, food security, and poor healthcare requires a collective and combined approach from people with shared goals and common challenges (Lucia, 2019). Principally, enabling people and goods to move freely across member state is one but an importance step. However, the only promising avenue is collaborative prevention and control measures in cushioning the community, economic, and social fabric. The closure of borders due to pandemic such as COVID-19 and conflict resulting in restricted movement of goods, services, and people globally saw a stretch of already struggling national resources, scarce financial resources, human resources, foreign income, and healthcare system. As highlighted by literature, many regional leaders saw this and acknowledge the need for collective collaboration and trading among neighbouring countries and those with shared interest. Evidently, overreliance of western nations in both trade and relief funds is not sustainable. The findings indicate governments mismanagement of national resources (financial, natural resources, and human labour forces), corruption, and poor leadership and governments are mainly blamed for high poverty levels in the region. Ideally, there has been a huge leap forward in terms of infrastructural support need for a successful implementation of the agreement such as setting elaborate cross-border checks and favourable terms coupled with huge acknowledge for need for intercontinental collaboration. Collectively, these should be a boost in successful AfCFTA implementation. The agreement offer a lifeline to boosting collaborative and collective use of resources in addressing common problems such as poverty, healthcare, education, skilled labour, and market for produced products as well as cutting overreliance of colonial powers.

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