In
responding to the aspirations of Africa Agenda 2063, more than 54 member states of the African Union (AU) signed an agreement to create the African
Continental Free Trade Area (AfCFTA). The agreement is underpinned by the AU’s
vision to build an integrated, prosperous, and peaceful Africa that is a
dynamic force in the international arena. Presently, Namibia is among the 28
African Union (AU) member states that deposited their instruments of
ratification with the African Union. The AfCFTA is considered the world's
largest free-trade zone since the establishment of the World Trade Organization
in 1994 and the numbers of countries that participate in AfCFTA speak volumes. AfCFTA entered into force on 30 May 2019, and the
trading under the agreement was due to commence on 1 July 2020, however, due to
COVID-19 global pandemic, this date has since been postponed indefinitely.
This article ponders on importance of intellectual property
protection within the free trade zone (AFCFTA)
AfCFTA is
welcomed by many because it will create a single market for goods and services,
and boost the Intra-African trade. To a large extent, it requires members to
remove tariffs from 90 percent of goods to allow free access to commodities,
goods, and services across the continent. Along with, free
trade zone provides tax advantages and other regulatory exemptions that will
boost trade facilitation, business formation, and foreign investment. By
facilitating the movement of goods and services among African countries, AfCFTA
will create opportunities to accelerate intra-Africa trade, grow local
businesses, create jobs, and increase infrastructure development in the
continent. Thus, more enterprises and individuals are
encouraged to take up opportunities created by this single market zone with an
estimation of 1.2 billion people and with a consolidated GDP of more than US$3.4 trillion.
In essence, the free
trade zone will create opportunities and benefits for all the nations in the
continent, enable companies to expand their markets by exporting goods and
services across the continent with less or at no cost. It will also contribute to
the growth and diversification of our economy, therefore create jobs, as well
as reduce inequality and unemployment. The agreement will also reduce tariffs
and benefit entrepreneurs, including medium and small businesses. Furthermore,
this will serve as an opportunity for entrepreneurs from African countries to
start working together in a trade tariff-free environment. To take the
opportunity of the magnitude market that is due to commence, entrepreneurs and
organizations would wish to improve and stiffen their competitive gear
(Intellectual property rights).
Intellectual
Property Rights (IPRs) such as Trademark, enterprise design, copyright, patent,
and trade secret offers competitive advantages to a business. This is to say,
businesses and organizations preserve their relevance in a single competitive
market by owning certain innovation, technology, and corporate goodwill on the
goods and services. Nonetheless, with a free trade zone, it is no walk in the
park because all these market advantages embedded in IP are just territorial,
and can only be enjoyed and exploited in a country where the protection of IP is granted.
Given the
scenery of the current market, intellectual property protection avails freedom
to operate, promote franchising and it is a major facilitator of
technology transfer across jurisdiction without risking returns to the intellectual property right owners or the business. However, pluralities of opportunities of a free trade zone are
like Liverpool; they never walk alone, there are potential opposing
forces as per newton laws of motion. With free movement of good
and easy access to the international market, AfCFTA like other existing free trade zones may facilitate
illegal and criminal activities such as trade in counterfeit and pirated
products that will undermine the power of fair competition.
In a
reciprocal move, businesses, suppliers, and organizations that are considering
to partake in free trade zone or to tender in supplying their goods or service
in the market are encouraged to include intellectual property protection in
various countries within the business strategy. Protection of IP keeps
infringers afar and above all, an IPRs holder can seek remedies and
compensation in court if his/her intellectual property rights are violated.
Hence, just
like in chess games, any move should be calculated to the protection of the
King so as with business expansion with Intellectual Property components. Due
to the cost that comes with IP protections, it is
prudent for entities to identify jurisdictions that are of trade interest to
them only; shield their IP portfolios, and only then a safe move into the AfCFTA zone and international market can be made.
By:
Onesmus K Joseph - MBA, ACIS, BAP, CFIP, PPL
MPHIL Candidate - KNUST (Kumasi; Ghana)
Governance Professional
josephonesmus@yahoo.com
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