The United Nations Conference on Trade and Development (UNCTAD) released its 2024 report on African economic development in Abidjan, highlighting the constraints hindering the continent’s growth and offering solutions to address them.
UNCTAD Secretary-General Rebeca Grynspan commended Côte d’Ivoire’s economic resilience, noting that the country “accounts for up to 40 percent of GDP growth in West Africa and up to 30 percent of foreign investment stocks.” However, she emphasized Africa’s vulnerability to external shocks, particularly given the heavy reliance of many countries on the export of raw materials.
Grynspan highlighted several key challenges. “Half of African countries depend on oil, gas, and minerals, some up to 60% of their exports,” making them susceptible to price fluctuations in global markets. Limited access to transportation, energy, and ICT infrastructure increases trade costs by 50% compared to the global average, hindering competitiveness, especially for landlocked countries. Small and medium-sized enterprises (SMEs), which account for 80% of jobs in Africa, face numerous challenges, including limited access to finance, volatile currencies, and inadequate support systems.
The report emphasized the potential of the African Continental Free Trade Area (AfCFTA) to create a market of $3.4 trillion. However, unlocking this potential requires significant investment in infrastructure development to improve connectivity across the continent.
During the report’s presentation, Ivorian Prime Minister, Beugré Mambé, highlighted Côte d’Ivoire’s economic resilience and its commitment to sustainable development through the National Development Plan. He emphasized the crucial role of the private sector, which accounts for nearly 75% of investment in the country. The government is actively supporting the private sector through initiatives aimed at improving the business environment, such as enhancing infrastructure, expanding digital coverage, and streamlining regulations.
The UNCTAD report serves as a crucial reminder of the challenges facing the African continent and the need for concerted efforts to address these challenges and unlock the continent’s economic potential.
AP/fss/abj/APA