The European Union Ambassador to Ghana, Rune Skinnebach, has urged African countries to embrace competition and overcome resistance to opening their domestic markets to achieve the objectives of the African Continental Free Trade Area (AfCFTA).
Speaking on the Citi Breakfast Show on Wednesday, November 4, Skinnebach said some countries and businesses were reluctant to open their markets because of concerns that increased competition could threaten their existing market positions.
He cited businesses that had operated in protected markets for generations and might be unwilling to compete with companies from other African countries.
However, he warned that resistance to competition could undermine efforts to establish a unified African market where goods and services can move freely across borders.
Skinnebach acknowledged that opening up domestic markets could create short-term challenges for some businesses but said countries must be willing to make the necessary sacrifices to secure greater economic opportunities in the long term.
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“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 wider benefits of removing trade barriers.
“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 seeks to establish a single continental market for goods and services by reducing trade barriers, increasing intra-African trade and strengthening economic cooperation among member states.
