Conference Explores AfCFTA’s Benefits in Boosting Intra-Africa Trade

March 13, 2025

-57th ECA Conference Kicks Off

ADDIS ABABA – The United Nations Economic Commission for Africa (UNECA) has emphasized that fully harnessing the African Continental Free Trade Area (AfCFTA) is crucial for boosting intra-African trade and diversifying economies.

The 57th session of the Economic Commission for Africa: Conference of African Ministers of Finance, Planning, and Economic Development commenced yesterday under the theme:

“Advancing the Implementation of the Agreement Establishing the African Continental Free Trade Area: Proposing Transformative Strategic Actions”.

In his keynote speech, ECA Executive Secretary Claver Gatete highlighted that AfCFTA serves as a vital tool for enhancing trade within the continent, promoting economic diversification, and integrating African economies into global value chains. To realize its full potential, a strategic and coordinated approach is necessary.

He further noted that green and sustainable finance, climate-aligned investment strategies, and strengthened economic governance are essential to drive AfCFTA-led growth.

Deputy Executive Secretary Antonio Pedro underscored the significance of leveraging AfCFTA to mitigate the negative effects of multilateral trading systems. He described the agreement as both a development blueprint and a powerful political platform for Africa to establish a unified stance on key global issues.

Currently, approximately 85% of Africa’s total exports are directed outside the continent, with primary commodities comprising over 60% of the total. In contrast, intra-African trade is more diversified, consisting predominantly of industrial products. Pedro noted that reducing tariffs and non-tariff barriers could increase intra-African trade by 45% by 2045 compared to a scenario without AfCFTA. However, he highlighted the lack of awareness about the agreement among African private-sector players, particularly small and medium-sized enterprises (SMEs), as a major challenge.

Finance State Minister Semereta Sewasew emphasized that AfCFTA is not merely a legal framework but a transformative initiative aimed at deepening Africa’s economic integration. By facilitating intra- African trade, harmonizing policies, and eliminating barriers, AfCFTA contributes to industrialization, job creation, and poverty reduction, which are essential to achieving the aspirations of Agenda 2063: The Africa We Want.

“This initiative is not just an agreement; it is a bold statement of Africa’s collective vision for economic independence, shared prosperity, and deeper regional integration. Signing the agreement is just the beginning—its implementation requires sustained collaboration, commitment, and effort,” she stated.

Ethiopia has made significant strides in improving regional connectivity. The Addis Ababa-Djibouti railway serves as a crucial trade corridor, facilitating the movement of goods and strengthening economic ties across the Horn of Africa. Furthermore, Ethiopia’s partnership in the LAPSSET Corridor with Kenya demonstrates its commitment to enhancing regional logistics and ensuring efficient trade flows across borders.

By fully implementing AfCFTA, Africa has the opportunity to redefine its trade landscape, strengthen economic resilience, and drive sustainable development for the continent.

BY TSEGAYE TILAHUN

THE ETHIOPIAN HERALD THURSDAY 13 MARCH 2025