AfCFTA: Bold leadership needed to boost intra-Africa trade – Prez Akufo-Addo says
President Nana Akufo-Addo has asked governments and stakeholders across the continent to show bold leadership to ensure a robust intra-Africa trade to drive agriculture growth, economic diversification and the must needed industrialization of the continent.
Speaking at the opening of the two-day 7th African Leadership Forum in Accra under the theme : Promoting intra-Africa trade to unlock agricultural potential in Africa, President Akufo-Addo said “The AfCFTA has set the stage for Africa’s industrialization and transformation; what is required now is for our respective governments and businesses to show bold leadership -we need coherent and complementary strategic actions by government and businesses, the right mix of policies and strategies for export, value addition to commodities, the greater sense of purpose to ensure a robust intra-Africa trade to drive agriculture growth, economic diversification and the must needed industrialization of the continent.
We must consolidate the successes so far and with a sense of urgency develop a signature solution needed to dig deeper intra-Africa trade and spur impact investments needed to bring prosperity to the continent.”
The Africa Continental Free Trade Area (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.
For President Akufo-Addo, AfCFTA is undeniably a major game changer and once fully realise can increase intra-Africa trade by US$35bn and reduce external import by US$10bn yearly -which he adds more opportunities for growth for small businesses and the potential to lift some 13m people out of poverty.
Additionally, a successful AfCFTA will mean Africa’s industrial export would be diversified -moving away from undue reliance on extractive commodities and foreign import.
Agriculture has exceptional potential for increasing intra-Africa trade, creating new jobs, improve inclusivity due to upstream and downstream linkages.
“We must move away from being mere raw exporters of agricultural produce and add value to our agriculture, not only would we be able to increase earnings from our agriculture but will also position countries on the continent to be able to deal with price hikes and shocks caused by global events.” he noted.
Unlocking Africa’s agricultural potential will help mobilise the requisite amount of finance needed to help develop the continent, Africa needs between 130 to 170bn USD annually to bridge her infrastructure gap and generate sustainable growth for at least five percent per year. It presents an exceptional opportunity for the private sector investment.
The Secretary-General of the Africa Continental Free Trade Area (AfCFTA)Secretariat, Wamkele Mene emphasized the importance of addressing food security in Africa which requires prioritizing intra-Africa trade and unlocking the continent’s agricultural potential.
Further, he stated that with 794.7million people experiencing food insecurity, it is time to reduce dependence on imports and promote self-sustaining food supplies.
According to Mr.Mene the AfCFTA provides a platform for efficient cross-border trade, enabling surplus food to reach deficit regions quickly.
He also indicated that Africa has the potential to feed 9 billion people in the world by 2050, far more than the current world population.
“Africa can, therefore, provide for Africa, with self-sustaining food supplies, fully unlocking its agriculture potential to help feed the world. And this task is not beyond us.
There is, therefore, is an imperative need to accelerate agricultural production to reduce the food import bills, revive the rural economies, slow down rural to urban migration, expand foreign exchange earnings and create jobs, especially for young Africans and women.”
The forum seeks to provide a space to share experiences and insights to facilitate a successful agricultural trade among African countries. Delegates include former heads of state and government and leaders from the private sector, academia, civil society.
