AfCFTA: Future of sports and entertainment in an economically united Africa
Feature Highlight
It is still too early to gauge how the AfCFTA will affect the sports and entertainment industry, since the agreement is still in its early stages of implementation.
January 1st, 2021 marked the start of trading under the African Continental Free Trade Area (AfCFTA) agreement. In ratifying the agreement, 34 African countries have created the largest free trade zone in the world by country participation. This is a historic point for the continent, it is the beginning of what is hoped will, at the very least, form a workable framework for a modern African economy. An African economy that will allow free movement of labour and goods within member States – a drastic change from the current siloed economic structures, and hopes to foster intra-African trade, industrialization and self-reliance.
Economic co-dependency or cooperation between sovereign States is not a new economic strategy. Europe has sought to achieve this at the regional or supranational level through the establishment of the European Union. However, the recent decision of the United Kingdom to leave the EU shows that the goal of integration is not without its challenges.
Oneyka Cindy Ojogbo
The United States has functioned for so long as a collage of economic co-dependent states that few pay much attention to the analogies with modern supranational, regional organizations such as the European Union. However, on closer inspection, it is clear that the same rules of a shared currency, open borders and the full economic integration of the states played a large and important role in the growth, stability and development of the US. There are similar associations in Asia – the Association of Southeast Asian Nations (ASEAN); and in the Arab region – the Council of Arab Economic Unity (CAEU).
Africa has also championed regional economic integration, but never at the level or scale of the AfCFTA and, indeed, not as successfully as in other world regions. African economic communities like ECOWAS, SADC, EAC and others, have failed to substantially integrate their disparate national economies which would have served to protect the region from exploitation by its neighbours to the east and the west.
With consumer population projections favouring Africa, and a combined consumer and business spending projection of $6.7 trillion by 2030, according to Brookings Institution, the time is now for Africans to look inwards for solutions to the continent’s economic woes. The sports, media and entertainment industry is one space where the continent continues to show promise. African content competes favourably on the radio and streaming networks on a global scale, spurring key investments from media giants like Disney and Netflix. The continent is also a major contributor in the world sports industry particularly in consumption and talent exportation. The discussion must now revolve around the question of how the AfCFTA and intra-African collaboration can be best employed to secure these industries’ futures.
The answer: developing local industrialisation, production and distribution infrastructures for the consumption of sports, media and entertainment. This is key to the success of the AfCFTA in these industries. It will be near impossible to unlock the true value of this agreement without Africa first fixing its infrastructure deficit and this is relevant even beyond the sports and entertainment sectors. African countries must aim to localize its production and distribution processes as much as possible to control a larger part of the African market.
For example, the music industry today is primarily dominated by streaming consumers and with the rise of movie streaming platforms like Netflix and Amazon TV, the film industry is leaning towards this model as well. From the outset of the digital revolution, China was branded “isolationist” for regulating the entrance of businesses like Google and Facebook into the country to give local alternatives a chance to develop. This move may have been branded as a security move, but it has also proven to be an economic boon to Chinese competitors in these spaces. With this agreement, the time is ripe to develop African digital infrastructures to leverage upon the continent’s population resource in industries like music and film where there is already an appreciable global presence. It is indeed the right time to create our own entertainment giants!
In the sports arena, rather than constantly exporting our best talents, local investment in sports like football, for example, can provide the required infrastructure to ensure that African athletes can thrive right here on the continent. This will serve to effectively reduce talent flight, a major challenge in the industry today. It could eventually place African leagues at par with the popular European leagues where so many players of African descent consistently perform excellently.
It is still too early to gauge how the AfCFTA will affect the sports and entertainment industry, since the agreement is still in its early stages of implementation. We are also yet to observe how committed member States are to this intended collaboration. One thing is for sure though; any initiative that welcomes the free movement of goods and services within Africa and promotes intra-African investments and cooperation on intellectual property rights is a huge step in the right direction for a continent with much to benefit from greater economic integration.
Oneyka Cindy Ojogbo is a Senior Associate and Practice Lead at Centurion Law Group
The Intra-Africa Trade series is promoted by Nigerian Export-Import Bank (NEXIM Bank). The opinion here is that of the author and not of NEXIM Bank.
Previous articles under the series:
Brexit, fair trade and Africa
COVID-19: A threat to food security in Africa
10 actions to boost low & middle income countries' productive capacity for medicines
DFIs are founded for the good and crisis times
What Nigeria must do to reap the benefits of African free trade
Other Features
-
At 50, Olajide Olutuyi vows to intensify focus on social impact
Like Canadian Frank Stronach utilised his Canadian nationality to leverage opportunities in his home country of ...
-
Reflection on ECOWAS Parliament, expectations for the 6th Legislature
The 6th ECOWAS Legislature must sustain the initiated dialogue and sensitisation effort for the Direct Universal ...
-
The $3bn private credit opportunity in Africa
In 2021/2022, domestic credit to the private sector as a percentage of GDP stood at less than 36% in sub-Saharan ...
-
Tinubunomics: Is the tail wagging the dog?
Why long-term vision should drive policy actions in the short term to achieve a sustainable Nigerian economic ...
-
Living in fear and want
Nigerians are being battered by security and economic headwinds. What can be done about it?
-
Analysis of the key provisions of the NERC Multi-Year Tariff Order ...
With the MYTO 2024, we can infer that the Nigerian Electricity Supply Industry is at a turning point with the ...
-
Volcanic explosion of an uncommon agenda for development
Olisa Agbakoba advises the 10th National Assembly on how it can deliver on a transformative legislative agenda for ...
-
Nigeria and the world in 2024
Will it get better or worse for the world that has settled for crises?
-
The Movers and Shakers of Nigeria 2023
This special publication profiles 25 people and institutions based on their societal or industry impact in 2023.
Most Popular News
- IFC, partners back Indorama in Nigeria with $1.25 billion for fertiliser export
- Ali Pate to deliver keynote speech at NDFF 2024 Conference
- CBN increases capital requirements of banks, gives 24 months for compliance
- Univercells signs MoU with FG on biopharmaceutical development in Nigeria
- CBN settles backlog of foreign exchange obligations
- Euromonitor forecasts Sub-Saharan Africa GDP to grow to $4.5trn by 2040