The Economic Commission for Africa (ECA) has urged African countries to speed up the implementation of the African Continental Free Trade Agreement (AfCFTA) to make it more resilient and globally competitive.
Antonio Pedro, the ECA’s acting Executive Secretary, stated this in a statement issued by the ECA’s Communications Section on Thursday.
On Wednesday, Pedro addressed the 42nd Ordinary Session of the African Union Executive Council in Addis Ababa.
He claimed that only by accelerating and effectively implementing the AfCFTA could Africa build sufficient shock absorbers to build resilience.
According to him, by fast-tracking the implementation of the AfCFTA, Africa can also provide solutions to the global challenges of supply chain disruptions, food insecurity, climate change, and migration.
Pedro said could be done through AfCFTA by providing the economy of scale to invest in manufacturing and increased intra-Africa trade.
According to him, the free trade area will bring supply chains closer to homes 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.
He said that ratification and implementation were some challenges that required immediate attention.
Pedro, however, appealed to the 10 African countries that had not yet ratified the agreement to do so.
The acting executive secretary said resource-based industrialization should focus on value addition, smart operationalization of local content policies, and tapping into global value chains.
According to him, the Battery and Electric Vehicle (BEV) sector can enable the continent to tap into a global value.
He said the value is expected to reach 8.8 trillion dollars in the next three years and 46 trillion dollars by 2050.
“The ECA is supporting the BEV value chain with strong political will from the Democratic Republic of Congo and Zambia.
“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 continet’s food import market valued at about 90 billion dollars per year,’’ he said.
Pedro said the ECA would continue to support and collaborate with the African Union and other stakeholders to transform the continent into a globally competitive investment destination.
The media reports that AfCFTA was inaugurated in 2019, to establish a unified market of 1.3 billion people and a Gross Domestic Product (GDP) of about 3.4 trillion dollars.
It is to become the world’s largest free trade area, with 55 member states.
