Economist and Political Risk Analyst, Dr. Theo Acheampong, has noted that the recent spate of coups across the African Continent is a major threat to the implementation and success of the African Continental Free Trade Area (AfCFTA) agreement.
Dr. Theo Acheampong is of the opinion that the African trade pact cannot achieve the intended outcomes amidst rampant coups which are worsening the already deteriorated security in Africa.
The Economist made this observation when he was speaking on an X-Space discussion on”Africa’s Coup D’etats and Business Landscape: Effects on Investments and Economic Stability” with NorvanReports on Sunday.
He further revealed that considering the trends of the various coups and the underlying reasons, the continent is likely to witness more overthrows of civilian governments.
“We have not seen the end of the coups and are likely to see more of it as the root causes of the coups which include both internal and external drivers still exist,” he opined.
He continued that “in the midst of the constant coups, AfCFTA cannot happen and it becomes imperative that we have an environment that is stable to facilitate intra-trading under the AfCFTA.”
Speaking further during the discussion, Dr. Acheampong noted that given the recent spate of coups, Africa faces another lost decade of economic growth as was the case in the 1970s.
He noted that coups derail economic growth and in many cases lead to the continuous decline in foreign direct investment inflows for many years. Further stating that coups on the continent feed into the popular notion held by foreign creditors that Africa is unstable and hence the high premiums placed on loans given to African countries by foreign creditors.
