As the move to remove visa requirements in Africa progresses, the continent continues to tackle common barriers hindering more intra-African trade and collaboration.
Visa-free policies are modern enactments of classical economic liberalism, where the principles of a free market and open borders will be tested, and its hypothesis is clear: reducing barriers will unlock considerable economic prosperity throughout Africa.
With visa-free legislation implemented, the odds that a country becomes a more attractive destination for people and businesses increase significantly. This change is expected to mirror what occurred in the European Union, which established visa-free travel and passport-free travel for citizens in the early 2000s.
In Africa, Benin, Seychelles, The Gambia, and most recently, Rwanda are the only countries visa-free for all Africans. The African Union welcomes this approach as it aligns with its Agenda 2063, which aims to achieve “an integrated continent, politically united and based on the ideals of Pan-Africanism and the vision of Africa’s Renaissance.”
The goal for a state is to invite more business and continue to grow and develop into a significant continental player, similar to the role that Germany or France play in the European Union. The idea that the Pan-African concept may finally come to fruition has been met with optimistic feedback. However, many worry about the safety and security of the country once it opens up its borders. This concern is not new either. In the past, countries stopped developing visa-free regimes due to the need for more assurance of the safety of the people and the state.
There is much support for the idea of a visa-free state across Africa. Such a move would relieve companies of pressure while simultaneously encouraging interaction and collaboration across borders and prioritizing the continent’s economic prosperity.
Visa-Free Africa: Economic Promise and Challenges
“In the modern global economy, prosperity is a nation’s choice… Nations choose prosperity if they organize their policies, laws, and institutions based on prosperity.”
–Michael Porter
As stakeholders adapt to the economic dynamics brought about by these policies, a wide range of industries could benefit significantly:
Market Expansion: As seen in the ASEAN Economic Community (AEC) and the European Schengen Area Agreement, reducing non-tariff barriers has significantly facilitated cross-border trade among its member states, explicitly benefitting Small and Medium Enterprises. A similar open-border approach will reduce non-tariff barriers in Africa. By lowering transaction costs and removing bureaucratic complexities, these business activities become more accessible and appealing.
Tourism: Making travel more accessible tends to invigorate the tourism sector. Thus, easing travel restrictions is poised to strengthen local economies, create numerous job opportunities, and energize tangential industries such as hospitality and retail, amplifying their contributions to the economic landscape.
Access to Human Capital: As in Canada’s Express Entry System and the Gulf Cooperation Council (GCC), countries that can effectively manage and leverage their human resources are more successful in drawing foreign investment. This increased access leads to economic growth and development and the adoption and diffusion of technology. This dynamic combination of human capital reallocation and technological advancement creates an environment conducive to economic progress and competitiveness.
Cultural Exchange: These policies will lead to cultural exchange that will foster greater understanding between African nations, regional integration, and a sense of pan-African identity. Think about the last time you traveled abroad. How did that experience affect your understanding of your own cultural identity? Regional integration through cultural exchange may lead to a political and economic cooperation cascade, allowing for cohesive policies and cooperative strategies in tackling regional challenges.
Challenges and Considerations:
As with all change, there are mounting challenges. The effectiveness of this policy extends beyond free movement, and a more nuanced strategy is essential to ensure that increased trade and investment benefits are not fleeting. Security concerns, often perceived as distinct from economic factors, directly influence the region’s stability and economic appeal. The success of these new policies relies heavily on implementing measures to safeguard against potential threats, preserving the anticipated economic benefits.
Threats and Security: The ease of movement across borders may lead to negative security externalities, including increased risks of transnational crimes and security threats. The ease of border crossings may escalate international crimes such as human trafficking, smuggling, and drug trafficking, even increasing the risks of terrorism. These threats necessitate a cost-benefit analysis of open borders vis-à-vis national security concerns.
Public Service Burden: Consider your local public services. How would they cope with an influx of people from across the continent? Should these policies prove successful and lead to an influx of people, this will exert pressure on public goods and infrastructure – leading to congestion issues and straining resources like transport systems, healthcare, and urban infrastructure.
Inequalities in Growth: The economic benefits may be uneven in different regions within these nations. Such policies disproportionately benefit areas with well-established tourist infrastructure or developed business centers. This uneven distribution of benefits could inadvertently increase regional economic disparities, leading to uneven economic gains.
A Visa-Free Future
The decision to introduce new travel regulations would mark a turning point in pursuing African unity and economic prosperity. Such a move, reflective of a growing trend, would resonate among the people of Africa. There is a burgeoning sense of optimism and acceptance among Africans who see these policies as a gateway to new opportunities, fostering a spirit of Pan-Africanism. The implications of these policies extend beyond their economic aspects, encompassing significant national security considerations as well.
Balancing the overall optimism with a pragmatic approach to the challenges these policies bring is essential. Effectively addressing these issues requires a coordinated effort from African nations, emphasizing the need for strategic planning, investment in infrastructure, and regional cooperation. The European Union shows us that the perfect way to deal with the risks and issues has not only not been found, but its search is a challenging feat.
As we move forward, it’s clear that the African continent is on the cusp of a new era of interconnectivity and growth. The journey ahead has many promises but also many challenges. The removal of visas is a first step in that direction. How countries are navigating this promising approach will shape the future of Africa.
