The Possible Contribution of the African Continental Free Trade Area to the Economy of Eritrea.

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue I, January 2021 | ISSN 2454–6186

The Possible Contribution of the African Continental Free Trade Area to the Economy of Eritrea.

Ataklti Tsige Kidane
Pan African University of Governance, Humanities, and Social Science (PAUGHSS)
University of Yaoundé II, Soa, Cameroon

Abstract
Regional integration has a considerable contribution to achieving sustainable economic and social development through effective implementation of intergovernmental treaties and market-led strategies. These ambitions have been in the mind of every African since African countries got their independence. To reach these African dreams, African countries began with the establishment of African Economic communities (Abuja Treaty). Later the continent-wide free trade area that is AfCFTA came up with the objectives of creating a single continental free market for goods and services, free movement of factors of production, and paving the ground for accelerating the creation of a continental customs union. Eritrea is the only country left behind from this continental free trade treaty. Most of Eritrea’s policies are heavily influenced by the government’s ideology, which values self-reliance, that produced an inward-looking economy. However, these policies have contributed to Eritrea’s weak economy and financial woes, reduces extreme poverty, and promotes national unity; it much limits civil liberties, international engagements, and economic growth prospects; therefore, it needs much reform. The study used one of the various study plans, which is mixed-methods – qualitative driven- of exploratory research. The results revealed that the AfCFTA has significant expected benefits for the Eritrea economy. These benefits are not only restricted to the economy only; it goes to social, cultural, and diplomatic relations.The findings also discovered that the government has a limitation on reforming investment, trade, and financial policies. Therefore, the study recommends that Eritrea’s government to amend and implement the suspended policy in accordance with AfCFTA and should sign the treaty.
Keywords; Regional Integration, Regional Economic Integration, and AfCFTA
Introduction
Regional integration is relatedto the discriminatory removal of all trade impediments between a minimumof two participating nations and establishing some aspects of cooperation and coordination between them(M.El-Agraa & Ali, 1999). Regional integration is a strategy where countries in the same region agree to enhance economic cooperation through agreed institutions and rules, focusing on eliminating barriers to free Trade in the region, increasing the free movement of labor, people, capital, and goods. RI is mainly trade-driven and is a process that involves expanding multilateralism in a regional economy, and later it involves integrating other economic, political,and social policies. It is a process during which the sovereign power of the member states is progressively diminished. African countries have long been mostly excluded from the benefits of international Trade(Matambalya, 1995).

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