UN Secretary-General António Guterres spoke on the final day of the annual Africa Dialogue Series in New York. Specifically, he focused on accelerating AfCFTA trade growth through the African Continental Free Trade Area. This initiative currently stands as the largest free trade area in the world.
Potential for Poverty Reduction
Guterres noted that the pandemic and the invasion of Ukraine increased food and energy prices globally. Consequently, many African nations now face rising interest rates and climate risks. However, the full implementation of the trade area could generate income gains of nine per cent by 2035. Therefore, robust AfCFTA trade growth would lift up to 50 million people out of extreme poverty and reduce income inequalities across the continent.
Breaking Barriers and Reforming Finance
Realising this promise requires action across four critical areas. First, Guterres called for a fundamental reform of the global financial system to represent Africa at the highest levels. Furthermore, nations must break down barriers that hold back intra-African trade and production. By eliminating tariffs and building “made in Africa” supply chains, the continent can harmonise regulations and enable sustainable investment.
Leveraging Technology and Innovation
Digital and energy infrastructure remains vital for building manufacturing capacity. Consequently, Africa must leverage technology to join the fourth Industrial Revolution. Although the continent possesses massive clean energy resources, it received only two per cent of global renewable investment over the past decade. Industrialisation powered by renewables could generate over six million jobs by mid-century. Therefore, technology acts as a primary catalyst for AfCFTA trade growth.
Investing in Human Capital
Finally, the Secretary-General underscored the importance of investing in people. Africa’s young population represents both a dynamic workforce and a massive market. Therefore, creating decent jobs for women and promoting lifelong learning ensures that everyone contributes to the digital revolution. This investment in human capital will ultimately sustain long-term economic expansion.
Courtesy: news.un.org
