UNCTAD: The implementation of the African Free Trade Agreement creates a $ 3.4 trillion market
Geneva, February 10 / WAM / The United Nations Trade and Development Organization (UNCTAD) said that economic weaknesses in Africa can turn into opportunities through trade and investment of up to $ 3.4 trillion.
The organization added in a report distributed in Geneva today, dealing with economic development in Africa for the year 2024, that the African continental free trade zone, total economic reforms and innovative financial tools can help stabilize economies and reduce dependence on volatile global markets.
The report emphasized that investing in infrastructure and diversification of trade and small and medium -sized companies is an essential matter for unleashing growth and advancing sustainable development, as Africa has the ability to become a major engine for global trade and economic growth.
The report launched today by the Secretary of the Organization, Rebecca Greenban, highlights the role of bold political reforms and strategic investments in enhancing Africa’s ability to withstand global shocks and create new economic opportunities. Greenban said: Africa faces serious challenges – from volatile global markets, high debt costs and gaps Infrastructure – but these challenges are also an opportunity to reshape the economic future of the continent through bold reforms, investment and full implementation of the African Continental Free Trade Agreement and Africa can come out stronger, more flexible and more competitive.
He said that Africa’s dependence on basic commodity exports, high trade costs and weak infrastructure makes it very influenced by external shocks and identifying major areas of work stressing the need to limit dependence on volatile markets, reduce costs and enhance small and medium -sized companies.
The report stated that nearly half of the African countries depend on oil, gas, or minerals by at least 60 % of export revenues, which exposes them to price fluctuations, and confirmed that diversification of exports and promoting trade between African countries would create more stable flows.
The UN report indicated that the infrastructure gaps in transportation, energy, information and communication technology make trade more expensive by a 50 % of the global average, which limits competitiveness – especially for coastal countries and that investing in logistical services and digital communication is very important to unleash growth.
Onctad reported that small and medium -sized companies provide 80 % of job opportunities throughout Africa, but they are struggling with weak infrastructure, currency fluctuation and limited financial access, and confirmed that the expansion of credit, risk management tools and regional supply chains would enhance its flexibility.
The report emphasized that trade between African countries remains one of the greatest opportunities on the continent, but it represents only 16% of the total exports, with most of the trade outside the continent and said that the full implementation of the African Continental Free Trade Agreement would create a 3.4 trillion dollar market and unleashing this The capabilities require investment in infrastructure by expanding transportation, energy, information and communications technology and simplification of trade policies and operations such as customs and manufacturing support through motivational tax exemptions and loans with reasonable benefit.
Dry / WAM
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