Cairo – Professor Kingsley Moghalu, Chairman of the Board of Directors and Advisory Board of the Africa Private Sector Summit, emphasized the pivotal role of regional trade and the African Continental Free Trade Agreement (AfCFTA) in driving Africa towards prosperity at the 2023 Afreximbank Intra-African Trade Fair.
I. RECs and AfCFTA – Paving the Path to Prosperity
Africa’s political leaders, decades ago, astutely recognized the potential of regional integration and trade in fostering prosperity. This foresight led to the establishment of eight Regional Economic Communities (RECs), the precursors to the African Union and the AfCFTA.
Presently, the African Union recognizes a total of eight RECs, including ECOWAS, UMA, COMESA, CEN-SAD, EAC, ECCAS, IGAD, and SADC. While the RECs laid the groundwork for an intra-African trade regime, the need for a broader continental approach persisted. The AfCFTA, signed on March 21, 2018, covers 54 out of 55 African countries, encompassing a population of 1.3 billion people. This monumental agreement aims to progressively reduce trade barriers, opening doors for significant economic growth. Notably, the AfCFTA aims to elevate intra-African trade by 52%, lift 30 million people out of poverty, and boost the continent’s GDP by USD 450 billion by 2035.
Africa’s trade landscape lags behind other continents, with only 16% of its global trade being intra-regional, in stark contrast to Europe’s 70%, Asia’s 59%, and North America’s 30%.
II. Role of Private Sector and Governments
Realizing the targets set by the AfCFTA hinges on the active involvement of the private sector. While governments have ratified the AfCFTA, it is the private sector that ultimately drives intra-African trade. Thus, a symbiotic relationship between the public and private sectors is imperative for success. Effective governance and a conducive business environment are crucial for the private sector to thrive and foster prosperity.
III. Africa Private Sector Summit and the Private Sector Bill of Rights
The Africa Private Sector Summit (APSS) plays a key role in promoting trade and investment across Africa. Through collaborative efforts with entities like PACCI, ABC, and AETF, the APSS aims to enhance the private sector’s capacity to drive economic growth. In pursuit of this, the APSS is championing the adoption of a Charter on the Private Sector Bill of Rights (PSBoR) to foster an enabling business environment across Africa. This bill incorporates 24 specific rights, including the right to an easy business establishment, a conducive legal framework, infrastructure, peace and security, and consultative relationships between governments and businesses. The adoption of the PSBoR is poised to complement and expedite the realization of the AfCFTA’s Framework Protocols.
IV. The Afreximbank and AfCFTA
The pivotal linkage between the Private Sector Bill of Rights and the AfCFTA is underscored by the African Export-Import Bank (Afreximbank), the official host of the… [to be continued]
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Boosting Intra-African Trade: Afreximbank and the Private Sector Bill of Rights
As a representative for Media Talk Africa, I was honored to be invited by Professor Benedict Oramah, Afreximbank’s President, to deliver the bank’s 30th Anniversary Founders Day Lecture in Cairo last May. This significant event marked the profound impact of Afreximbank, Africa’s premier trade finance bank, in shaping the continent’s economic landscape.
Afreximbank has been pivotal in financing trade across Africa. The recent establishment of the African Continental Free Trade Area (AfCFTA) has now provided an institutional framework, amplifying the potential impact of intra-African trade. Additionally, Afreximbank has introduced revolutionary products such as the AfCFTA Adjustment Fund and the Pan-Africa Payment Settlement System, facilitating seamless cross-border trade in local currencies. These advancements further underscore the critical importance of the Africa Private Sector Bill of Rights.
One distinctive aspect of Afreximbank is its nature as a public-private partnership institution with full diplomatic status, functioning as both an international organization and a key financier for private sector and SME enterprises. This unique positioning highlights the immense potential for collaboration between Afreximbank and the Africa Private Sector Summit to foster an enabling business environment.
Trade, business, and economies at large thrive within strong and predictable business environments. The proposed Africa Private Sector Summit’s Charter on the Private Sector Bill of Rights stands as a crucial catalyst for sustainable economic growth and poverty alleviation. This charter will yield practical benefits for governments, stock exchanges, African businesses, development partners, and the global public. A flourishing private sector not only bolsters government revenues through increased taxes but also fosters the growth and sustainability of capital markets, propelling Africa towards the 4th Industrial Revolution.
In conclusion, the harmonious coexistence of the Private Sector Bill of Rights with the Regional Economic Communities and the transformative AfCFTA Treaty signals an Africa that is undeniably open for business!
