The blueprint for Africa’s economic revolution revealed
Africa could be viewed as the economic center of the world given its vast natural resources and human capital. While this fact is hardly reflected in the continent’s current economic outlook, Africa’s growth potential, as evidenced by its rank as the world’s fastest-developing region, is indisputable. To position Africa in its rightful place, a few steps must be taken.
The 2024 Africa Prosperity Dialogue (APD), which was held from 25-27 January 2024 at the Aburi Hills in Ghana, touched on the potential for economic advancement on the continent.
For Africa to reach its full potential, there are four focal points Africa must key on. They are reinforcing the continent’s products, enhancing agriculture, tapping into the global value chain via the continent’s natural resources, and boosting intra-continental trade.
During the conference, several initiatives that are already in play were touched on including the recent visa-free entry, that Ghana, Rwanda, and Kenya are in the process of implementing.
“African governments should strive to implement visa-free border countries to enhance intra-African trade,” an extract from the program’s keynotes, reads.
During the program, it was mentioned that the African Continental Free Trade Area (AfCFTA) has the potential to increase intra-African commerce by around US$3.2 trillion.
Touching on the point of the global value chain, the importance of refineries in the continent was highlighted, bringing to mind countries such as Algeria, Egypt, South Africa, Libya, and Nigeria, with its recently built Dangote refinery, the largest capacity refinery on the continent.
“Governments in oil-rich African nations should actively foster the development of integrated refineries within their private sectors. These refineries should feature interconnected units for both crude oil refining and petrochemical production, thereby enhancing operational efficiency and ensuring long-term sustainability,” the program memo reads.
“African countries need to invest more in agriculture. Enhanced investments in agriculture are imperative for African countries. This involves substantial support for smallholder farmers, granting them access to modern farming techniques, high-quality seeds, fertilizers, irrigation systems, and essential agricultural infrastructure. Augmenting agricultural productivity stands as a pivotal measure to bolster food production,” the memo adds, speaking on leveraging agriculture.
Intra-African trade has been hindered by trade barriers and a lack of diversification in most parts of the continent. To foster development these issues must be addressed as highlighted in the program.
“African countries should bolster their trade facilitation efforts. Simplifying customs procedures, reducing trade barriers, and standardizing regulations will significantly enhance Africa’s integration into regional and Global Value Chains (GVCs),” the memo reads.
“African governments should provide an enabling environment to encourage, promote, and support women in trade initiatives. Women constitute a substantial portion of the African population and workforce, possessing unique skills and entrepreneurial spirit. Involving women in intra-African trade not only promotes gender equality but also enhances the overall efficiency and resilience of economies,” it adds.
Fortunately, countries such as Tanzania, Zimbabwe, and Malawi are already ahead of the curb when it comes to diversification.
