APA-Cairo (Egypt) Can the African Continental Free Trade Area (AfCFTA) break Africa’s colonial legacy of exporting raw materials and importing finished products from outside the continent?
Jean-Louis Ekra, Deputy Chairperson of the Intra-African Trade Fair (IATF2023) Advisory Council and a former President of the African Export-Import Bank (Afreximbank) says the continent cannot allow this trade system to fail.
The AfCFTA an ambitious trade agreement covering critical areas of Africa’s economy, such as digital trade and investment protection, amongst other spheres.
Tied to the African Union’s flagship Agenda 2063, the AfCFTA seeks to permanently eliminate barriers intra Africa trade and significantly boost value-added production and across all sectors of the continental economy.
54 AU member states have signed up to the agreement by November 2023, with 47 state parties as of the same period.
It is envisaged that the continent’s economy will witness an unprecedented $450 billion income boost by 2035.
Speaking at the Trade and Investment Conference of IATF2023 which began in Cairo, Egypt over the weekend. Mr. Ekra, who was delivering an opening statement, pointed out the unsustainability of African economies relying on natural resources and commodities.
He said this dependence made them vulnerable to adverse trade shocks, liquidity constraints and macroeconomic management challenges.
Arguing that the situation needed to be addressed urgently, especially as it had worsened the effects of the COVID-19 pandemic, geopolitical tensions and climate change, he said that “AfCFTA cannot fail, especially given that intra-African trade is estimated at 16 per cent” which was a level of trade that compared unfavourably with other regions.
Mr. Ekra said that the low level of intra-African trade was explained by constraints such as limited trade and infrastructure including payments and settlement systems, lack of access to relevant market information, limited knowledge about business, sustained investment opportunities and limited platforms to connect buyers and sellers.
He urged African countries to recognise that the AfCFTA was the missing link the continent needed and that it presented many trade and investment opportunities in manufacturing, export development, SME promotion and trade in services.
Also speaking, Ali Basha, Minister Plenipotentiary from Egypt, welcomed guests to the conference urged all African nations to “work hand-in-hand to address the challenges of trade integration.”
The ceremony showcased a hologram of Kwame Nkrumah, a former President of Ghana and a major advocate for African unity.
In subsequent panel discussions, attendees heard contributions on a wide range of topics, including energy transition and industrialisation in Africa, transforming the manufacturing sector and promoting diversification of African trade.
During a panel on energy transition and industrialisation in Africa, Dr. Ainojie Irune, Chief Operating Officer of Oando Energy Resources, emphasised the need for African leaders to be more impatient about developing the continent, arguing that energy was crucial to Africa’s development and the transition should benefit Africa where 40 percent of the population live without electricity.
Ms. Helen Brume, Afreximbank’s Director of Projects and Asset Based Finance, said that any discussion about transitioning to cleaner energy sources must consider that 600 million Africans still lacked access to electricity while 900 million do not have access to clean energy sources for cooking.
Participants at a panel on transforming Africa’s manufacturing sector deliberated on the importance of establishing connectivity in Africa’s supply chains and generally agreed that such a transformation would significantly improve the lives of Africa’s 1.5 billion inhabitants.
According to them, with the key to a thriving manufacturing sector being dependent on African talent, investing in their education and training was crucial.
A highlight of the day was the launch of the impact evaluation report of the US$19-billion Dangote Refinery and Petrochemical Complex in Nigeria by Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. Emeka Uzoigwe, Acting Director of Strategy and Innovation at Afreximbank, who noted that the complex was launched in 2018, emphasised the importance of the project’s insights for other African businesses as it had the potential to transform not only Nigeria but the entire West Africa.
The Trade and Investment Conference is a component of IATF2023, Africa’s largest trade and investment fair.
It aims to optimise access to Africa’s connected markets through the AfCFTA. The trade fair is expected to attract over 1,600 exhibitors and 35,000 visitors, with trade and investment deals worth US$43 billion projected to be concluded during the event.
WN/as/APA