Antonio Pedro, the acting Executive Secretary of the Economic Commission for Africa (ECA), has called on African countries to accelerate the implementation of the African Continental Free Trade Area (AfCFTA) in order to become more resilient and globally competitive.
Mr Pedro in his remarks at the 42nd Ordinary Session of the African Union Executive Council meeting in Addis Ababa intimated that only through an accelerated and effective implementation of the AfCFTA can Africa build sufficient shock absorbers to build resilience.
Mr Pedro condemned the fact that the COVID-19 pandemic and the Russia-Ukraine war have caused a state of crisis, pushing 55 million people below the poverty line and exacerbating inequalities. He noted that high global inflation has led to tighter financial conditions. Mr Pedro added that despite Africa’s economic growth of 3.9% in 2023 and 2024, more still needs to be done to compensate for the losses experienced in the past three years.
The Acting Executive Secretary pointed out that by fast-tracking the implementation of the AfCFTA, Africa can provide solutions to the global challenges of supply chain disruptions, food insecurity, climate change, and migration.
Highlighting the importance of the AfCFTA, Mr. Pedro noted that AfCFTA provides the economy of scale to invest in manufacturing and increased intra-Africa trade. He added that the free trade area would bring supply chains closer to home and inject self-sufficiency in essential products such as medicines, food, and fertilizers. “By providing more opportunities for women and the youth, the AfCFTA helps reduce inequality and poverty, and improves inclusion,” he said.
Challenges That Require Immediate Attention
However, Mr Pedro highlighted two challenges that require immediate attention– ratification and implementation. He explained that the AfCFTA Secretariat needs to appeal to the ten African countries that have not yet ratified the agreement to do so soon.
Commenting on resource-based industrialization, Mr. Pedro said this should focus on value addition, smart operationalization of local content policies, and tapping into global value chains. He cited the Battery and Electric Vehicle (BEV) sector as one that could enable the continent to tap into a global value expected to reach US$8.8 trillion in the next three years and US$46 trillion by 2050.
Mr Pedro explained that the ECA is supporting the BEV value chain with strong political will from the Democratic Republic of Congo and Zambia. He noted that the ECA is also partnering with stakeholders to support the transboundary agro-industry park and special economic zone involving Zambia and Zimbabwe, which could address food security concerns and tap into Africa’s food import market valued at about US$90 billion per year.
Mr Pedro pledged ECA’s continued support and collaboration with the African Union and other stakeholders to transform Africa into a globally competitive investment destination.
Launched in 2019 to establish a unified market of 1.3 billion people and a GDP of around US$ 3.4 trillion, the AfCFTA is poised to become the world’s largest free trade area with 55 member states.
The AfCFTA is one of the flagship projects of Agenda 2063: ‘The Africa We Want’. It is a high-ambition trade agreement, with a comprehensive scope that includes critical areas of Africa’s economy, such as digital trade and investment protection, amongst other areas. By eliminating barriers to trade in Africa, the objective of the AfCFTA is to significantly boost intra-Africa trade, particularly trade in value-added production and trade across all sectors of Africa’s economy.
The AfCFTA will contribute to establishing regional value chains in Africa, enabling investment and job creation. The practical implementation of the AfCFTA has the potential to foster industrialisation, job creation, and investment, thus enhancing the competitiveness of Africa in the medium to long term.
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