FOREIGN AID IN AFRICA: CHALLENGES TO THE REALISATION OF THE AFRICAN CONTINENTAL FREE TRADE AGREEMENT

The African Continental Free Trade Area (AfCFTA) is an initiative that is intended to create the biggest free trade area in the world. It came into being as a result of the fact that a number of nations, both on and off the African continent, showed their interest in actively participating in the agreement. The AfCFTA intends to remove trade barriers that exist on the continent and open a wide market for manufacturers and producers to circulate their products without any hindrance. The impact of foreign aid on the realisation of the AfCFTA remains the focus of this research. This research contends that foreign aid would hinder the implementation of the agreement. It further argued that foreign assistance affects the continent of Africa negatively, and the continent has become a dumping ground for foreign goods and services as a result of foreign aid. It adopted the modernisation and dependency theories to justify or reject the need for developing countries to receive assistance from donor nations. The research recommends self-reliance as a key factor in accelerating intra-African trade and boosting Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations in line with the relevant provisions of International Economic Law. It finally concludes that all African countries, including, the countries that are parties to the AfCFTA, should be mindful of the negative impacts of foreign aid in their efforts to attain sustainable and inclusive socio-economic development throughout the continent.