AfCFTA is Contributing to Double Africa’s GDP to Over $6T by 2035
The #AfCFTA Business Forum has been rebranded as Biashara Afrika 2024 (#BA2024), where Biashara is a Swahili word for business, trade or commerce. The theme of the Forum was “Dare to Invent the Future of #AfCFTA” and the Forum took place at the Kigali Convention Center from 9 to 11 October 2024.
Rwandan President Paul Kagame, AfCFTA Secretariat Secretary-General Wamkele Mene, AfCFTA Champion and former President of Niger Issoufou Mahamadou, and AUC Deputy Chair Monique Nsanzabaganwa attended the event. Attendance was lower than expected due to a health warning in force in Rwanda.
“We need to fix our politics and governance; and it begins with the mindset and vision.”
Rwanda President Paul Kagame
In his welcome address, President Kagame urged for bolder decisions to enable the free movement of goods and people in Africa. Intra-Africa trade still pales in comparison to trade between Africa and countries outside the continent.
There remains many non-tariff barriers which need to be ironed out. Reducing logistical costs and industrialization are key enabler to realize the benefits of AfCFTA. Moreover, many African countries are characterized by a sizeable informal economy made up of #SME.
In that regard, the AfCFTA Secretariat has earmarked a budget of USD 1 billion to promote intra-Africa trade. In the future, the Secretariat aims to increase this figure to USD 10 billion. The financing will be geared mostly towards promoting Local Value Addition (#LVA) and #TradeFacilitation.
So far, 30 countries are participating in AfCFTA’s Guided Trade Initiative (#GTI) which is a pilot for boosting intra-Africa trade. Although the figures are still modest, the potential for growth is huge and largely unexploited.
SG Mene believes has all the ingredients to produce and consume more locally exist within the continent. Africa has the market, the raw materials and the labor to make it happen. The Single Market of 1.3 billion customers is an irresistible magnet for investors wishing to cash in on the #AfricaRising story.
By some estimates, the AfCFTA will contribute to double the #GDP of Africa to over USD 6 trillion by 2035. However, #GoodGovernance favoring business is a sine qua non condition for uplifting the well-being of Africans.