The transformational opportunities offered by the African
Continental Free Trade Area together with the measures needed to unlock them
has been the focus for a High-level Ministerial Dialogue convened by the UN
Economic Commission for Africa in Addis Ababa (Ethiopia).
Continental Free Trade Area together with the measures needed to unlock them
has been the focus for a High-level Ministerial Dialogue convened by the UN
Economic Commission for Africa in Addis Ababa (Ethiopia).
During the official opening of the 51st Conference of Ministers,
Dr. Abiyi Ahmed, the Prime Minister of Ethiopia, urged the assembled finance
ministers and policy makers to use their ‘collective vision’ to create the
right conditions and commit the necessary resources for the creation of the
world’s largest trading bloc. The Prime Minister, who stated that his
government is ready to ratify the AfCFTA deal and deposit its instruments to
the African Union, said: ‘Let us finance our own development. There are no
losers with the AfCFTA. We are all winners.’ He also stated it must create
‘inclusive prosperity’ for all Africans, including marginalized and vulnerable
communities.
Dr. Abiyi Ahmed, the Prime Minister of Ethiopia, urged the assembled finance
ministers and policy makers to use their ‘collective vision’ to create the
right conditions and commit the necessary resources for the creation of the
world’s largest trading bloc. The Prime Minister, who stated that his
government is ready to ratify the AfCFTA deal and deposit its instruments to
the African Union, said: ‘Let us finance our own development. There are no
losers with the AfCFTA. We are all winners.’ He also stated it must create
‘inclusive prosperity’ for all Africans, including marginalized and vulnerable
communities.
Discussions on the theme ‘The African Continental Free Trade
Area: creating fiscal space for jobs and economic diversification’ addressed
specific concerns in relation to falling tax revenues arising from the free
movement of goods. According to the ECA, however, the ratio of tax revenue to
gross domestic product is already low in African countries. The ratio for many
of them falls below 15 per cent, widely considered the minimum threshold for a
state to function efficiently. Philip Lane, Ireland’s Central Bank Governor,
drew upon his country’s experience within the European Union trading bloc to
explain how such structures can offer economies sustained growth. Addressing
the opportunities arising from such a bloc, he remarked: ‘A large export base
provides stability, the diversification of markets and economic transformation
through free trade.’ The resulting growth in prosperity leads to the tax base
broadening, especially for small states whose ‘home market’ grows as
cross-border trade expands to embrace other countries.
Area: creating fiscal space for jobs and economic diversification’ addressed
specific concerns in relation to falling tax revenues arising from the free
movement of goods. According to the ECA, however, the ratio of tax revenue to
gross domestic product is already low in African countries. The ratio for many
of them falls below 15 per cent, widely considered the minimum threshold for a
state to function efficiently. Philip Lane, Ireland’s Central Bank Governor,
drew upon his country’s experience within the European Union trading bloc to
explain how such structures can offer economies sustained growth. Addressing
the opportunities arising from such a bloc, he remarked: ‘A large export base
provides stability, the diversification of markets and economic transformation
through free trade.’ The resulting growth in prosperity leads to the tax base
broadening, especially for small states whose ‘home market’ grows as
cross-border trade expands to embrace other countries.
The importance of infrastructure and logistics for the AfCFTA
was a major focus for the meeting. Vera Songwe, Executive Secretary of the ECA,
emphasised the importance of ensuring trading happens in a ‘seamless’ way along
the vital road corridors of the continent. She observed: ‘If we provide the
infrastructure and border reforms necessary through the AfCFTA we can create
jobs and growth.’
was a major focus for the meeting. Vera Songwe, Executive Secretary of the ECA,
emphasised the importance of ensuring trading happens in a ‘seamless’ way along
the vital road corridors of the continent. She observed: ‘If we provide the
infrastructure and border reforms necessary through the AfCFTA we can create
jobs and growth.’
Caution, however, was sounded by Prof. Emmanuel Nnadozie,
Executive Secretary of the African Capacity Building Foundation, in relation to
ensuring nations actually implement the plan. He observed, ‘Capacity is at the
centre of the problem’ and recommended that robust institutional arrangements,
appropriate regulatory changes and private sector involvement would ensure the
AfCFTA is implemented in an expeditious manner.
Executive Secretary of the African Capacity Building Foundation, in relation to
ensuring nations actually implement the plan. He observed, ‘Capacity is at the
centre of the problem’ and recommended that robust institutional arrangements,
appropriate regulatory changes and private sector involvement would ensure the
AfCFTA is implemented in an expeditious manner.
A highlight of the gathering was the Adebayo Adedeji Lecture
given in honour of Prof. Calestous Juma, a renowned supporter of harnessing
innovation and technology to advance Africa’s development, who died last month.
The lecture was given by Prof. Mary Teuw Niane, Senegal’s Minister of Higher
Education, Scientific Research and Innovation. Her lecture reflected upon
envisioning a science, technology and innovation future for Africa. Each year
the service of Prof. Adedeji, the longest serving ECA Executive Secretary, is
remembered through a lecture given by a prominent individual who has made a
special contribution to Africa’s development.
given in honour of Prof. Calestous Juma, a renowned supporter of harnessing
innovation and technology to advance Africa’s development, who died last month.
The lecture was given by Prof. Mary Teuw Niane, Senegal’s Minister of Higher
Education, Scientific Research and Innovation. Her lecture reflected upon
envisioning a science, technology and innovation future for Africa. Each year
the service of Prof. Adedeji, the longest serving ECA Executive Secretary, is
remembered through a lecture given by a prominent individual who has made a
special contribution to Africa’s development.
Culled from Africa.com
