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Geopolitical Instability and its Impact on Trade Integration in Africa

Domain:

socioeconomic

Record type:

paper
Creator:
LasAdiEro
Publisher:
Afr
Host:avatar
This study examines the complex relationship between trade integration in Africa and geopolitical instability. Despite efforts to promote intra-regional trade through initiatives such as the African Continental Free Trade Area (AfCFTA), Africa continues to face significant challenges stemming from geopolitical instability, economic constraints, and political unrest. In this context, the study aims to assess the effectiveness of trade integration policies in Africa, particularly in the context of the AfCFTA, and their implications considering prevailing geopolitical instability. The study analyses historical trade data and recent geopolitical events, unpacks the impact of instability on regional trade dynamics, and offers insights into the potential pathways for overcoming these challenges. The study found that the impact of instability in Africa includes limited access to financial markets, fragmented markets, and hindrance of trade liberalisation policies, leading to a decline in intra-African trade. Military coups, conflicts, and terrorism have created barriers to regional integration and pan-African cohesion. It is crucial for African governments to prioritise efforts to promote peace, stability, and good governance to unleash the full potential of the AfCFTA and foster sustainable economic development. Journal of Contemporary Issues in African Trade and Trade Finance, 9(1), 88-103

Visit

doi.org

Licenses

Creative Commons Attribution 4.0 Internationalhttps://creativecommons.org/licenses/by/4.0/legalcode

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