The Economic Commission for Africa (ECA) has projected that intra-African trade in the agri-food, industry, and services sectors will increase by nearly 35 percent by 2045, driven by the African Continental Free Trade Agreement (AfCFTA). This information was shared in a statement by Stephen Karingi, the Director of Regional Integration and Trade at ECA. The commission emphasized the importance of governments at all levels fully and effectively implementing the agreement to ensure that these projections materialize.
Recognizing the private sector as a crucial stakeholder in the AfCFTA, the commission highlighted its potential to drive sustainable economic development and job creation. Karingi pointed out that the private sector accounts for 80 percent of total production, two-thirds of investment, and three-quarters of credit in Africa, employing 90 percent of the working-age population. He stressed that the private sector must capitalize on the opportunities presented by the large single market created by the AfCFTA.
Karingi also addressed Africa’s vulnerabilities, noting that the continent’s weak productive capacity and heavy reliance on imports for essential products expose it to external shocks, such as the COVID-19 pandemic and the Russia-Ukraine war. He explained that when COVID-19 struck, African countries faced significant challenges in accessing basic medical supplies, as the continent imports over 90 percent of these necessities. Similarly, the onset of the Russia-Ukraine crisis led to food security issues in several African nations due to the suspension of wheat and corn exports from these countries.
The AfCFTA aims to integrate and consolidate Africa into a single market valued at $2.7 trillion by removing various trade barriers across the continent. This agreement provides a platform for Africa to diversify its economy and build resilience against both natural and manmade shocks, including climate change. Karingi reassured stakeholders that the ECA has been committed to this initiative from the beginning and will continue to support its implementation. He expressed confidence that Africa is poised to transform the promises of the AfCFTA into reality, with the ECA standing by to assist throughout the process.
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