Free Trade Area will boost intra-African trade – AUC chief

Free Trade Area will boost intra-African trade – AUC chief
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By Kamal Tayo Oropo
Lagos, May 19, 2018 (NAN) Boosting intra-African trade is the most effective way to bring growth and development to the continent, says African Union Commission (AUC) Deputy Chairperson, Amb. Kwesi Quartey.
A statement by the Economic Commission for Africa (ECA) on Saturday said Quartey made the remark at the 51st Conference of African Ministers of Finance, Planning and Economic Development in Addis Ababa recently.
Quartey said Africa’s ability to trade with itself, as well as with the rest of the world, will be an absolute game changer.
On the African Continental Free Trade Area (AfCFTA) Agreement, which he described as a historic development, he said the potential for intra-African trade to drive value creation and development was both palpable and real.
“But in order to trade, Africa first has to produce, and not just primary commodities. We must begin to apply science and technology to production.
“Statistical evidence has demonstrated that intra-African trade has tended to be mainly in processed foods, that is, goods and commodities to which value has been added,” he said.
Quartey said Africa’s ability to trade and do business with itself is what will drive the African Continental Free Trade Area.
“The potential of Africa’s integration and intra-Africa trade are enormous if we are able to take advantage of the economies of scale and creation of job opportunities.
“Including generation of income, mobility of investment capital and exploring our consumer market of nearly one billion people,” said Quartey.
“Whilst the benefits are clear and widely acknowledged, there is also the underlying need to review the strategies to drive intra-Africa trade and integration agenda.
“The successes would reinforce Africa’s place in the global economy and strengthen our bargaining power in international negotiations,” he said.
Quartey pointed out that as the rest of the world became increasingly fractured, Africa must advance its integration agenda.
He said the continent must move from 55 fragmented markets into a larger market with the prospects of a combined GDP of over three trillion dollars annually.
The News Agency of Nigeria (NAN) reports that AfCFTA is expected to boost consumer spending to $1.4 trillion in 2020 and increase intra-African trade by to $35 billion per year.
According to Quartey, Africa must scale-up its infrastructure investments to improve connections between and within African countries.
He said Africa must make trade more conducive, through the elimination of trade non-tariff barriers such as the restrictive travel policies and visa regimes, while harmonising trade policies, increasing manufacturing and processing capacity.
Quartey added that Africa must enhance linkages for rural communities to urban markets and vice versa as well as focus on capacity development to be able to participate in knowledge economy, and be ready for digital economy.
“We cannot afford to be illiterate or innumerate,” he said, adding that nations should address the governance, democracy and impunity deficits by empowering institutions to perform better.
“We must focus like a laser on human capacity development. Let us make deliberate efforts to educate and develop the skills and talents of our youth and children,” he said.
Quartey said for Africa to realise its goals, nations must seek to improve their domestic resource mobilisation.
He also spoke about AU reforms, saying 22 member states were at various stages of actualising the decision on financing the Union.
While 12 states were collecting funds levied from imposing the 0.2 per cent levy on eligible imported goods.
He encouraged more states to implement the decision for the AU to be self-reliant and to ensure predictable funding of AU activities and projects. (NAN)
KTO/SA
Edited by Salif Atojoko
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