The UK’s Prime Minister’s tour of Africa has been cut short by politics back home, but it is worth taking time to reflect on the message he is trying to deliver.  Writing in South Africa’s Business Day, David Cameron argues:

"Trade and enterprise have the power to change lives. What will lift tens of millions out of poverty in the long run is economic growth. And that means African countries buying from and selling to each other, doing business with one another and the world. The key to Africa’s progress is not just aid. What will save far more lives and do far more good is an African free trade area. It is time for some fresh thinking."

With his visit, Mr Cameron is throwing the UK’s weight behind an African push to create a Grand Free Trade Area over the next three years that will incorporate more than 500 million people, 26 countries and nearly a trillion dollars of economic output.  Negotiations finally launched in Johannesburg in June, following an initial commitment made back in 2008 by three key trading blocs: the Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (Comesa).  According to Cameron, “An African free trade area could increase GDP across the continent by about $62bn a year. That’s $20bn more than the world gives sub-Saharan Africa in aid.”

As we have argued (and as have many others, such as Trade Out of Poverty), promoting regional trade and integration is critical for promoting growth and development in Africa: only 10 percent of African trade is with other African countries.

Two things are missing though from Cameron’s story.  First, the importance of domestic markets – by far the priority for Africa’s small and medium enterprises (that will be the driver of much needed jobs).  The World Bank’s Doing Business team highlights the fact that Africa is making strong progress: “Among the 30 economies globally that improved the regulatory environment for domestic firms the most over the past five years, a third are in Sub-Saharan Africa”.  However, they also note that “9 of the 10 economies ranked lowest [globally] are in Sub-Saharan Africa. On average, the region still ranks 137th in the world. This indicates that local businesses and investors in Africa still encounter more red tape and less property rights protections than in other regions.”   African governments (and their donor partners), must continue to prioritize easing the domestic business environment.  This is critical for unleashing the innovation, enterprise and opportunity described by the UK’s Secretary of State for International Development in his recent speech on Growth and Africa.

The second element missing in Cameron's story, is the role that business can play in making it a reality.  Increasingly businesses are coming together to support “systemic-level” improvements – from the implementation of regional trade agreements to investment climate reform.  In West Africa, for example, a coalition of businesses, the World Bank and customs organizations of five ECOWAS countries are identifying ways to improve customs administration along the Abidjan-Lagos transit corridor.  In East Africa, a programme initiated by Business Action for Africa, known as Business Action for Improving Customs Administration in Africa, aims to improve the customs environment and to change the culture of customs administration from a controlling function to a facilitating one.  At the domestic level, the Investment Climate Facility is a private-public partnership to “make the continent an even better place to do business”, funding specific projects from property rights and contract enforcement to business registration and licensing.

Cameron should be commended for highlighting the importance of intra-African trade.  Unfortunately, the UK public are unlikely to hear his message through the noise of other stories dominating the headlines.  But for all those serious about Africa’s future, it - and more importantly the major African-led process that it reflects - must be given our full attention if the vision is to be transformed into an improved reality for millions of people across the continent.