President Akufo-Addo, has urged African leaders to hasten the coming into being of the Continental Free Trade Area (CFTA) to boost the development of economies on the continent.
According to President Akufo-Addo, “if we remain resolute and see to its realisation, we will obtain a major boost to the development of our economies, and a considerable reduction on our dependence on foreign goods and services. It is the path to collective self-reliance and prosperity.”
It will be recalled that Heads of State and Governments who attended the 28th Ordinary Session of the Assembly of the African Union, in January this year, signed up to the implementation of the CFTA.
The purpose of the free-trade area is to ensure significant growth of Intra-Africa trade, as well as assisting countries on the continent use trade more effectively as an engine of growth and for sustainable development.
The CFTA will also reduce the vulnerability of the continent to external shocks, and will also enhance the participation of Africa in global trade as a respectable partner, thereby reducing the continent’s dependence on foreign aid and external borrowing.
President Akufo-Addo was speaking at a State Banquet held in his honour by the President of the Republic of Zambia, His Excellency Edgar Lungu, on Tuesday, June 27, 2017, when he made this known.
He noted that for a continent that has made the choice of pursuing integration, Africa has not done much in liberalizing and promoting trade amongst member countries.
“Research has shown that countries or groups of countries with the largest share of world trade are located within regions with the highest share of intra-regional trade. Trade between African nations remains low compared to other parts of the world,” he lamented.
In 2000, intra-continental trade accounted for 10% of Africa’s total trade, and increased marginally to 11% in 2015. Trading amongst members of the European Union, for example, amounted to 70% in 2015. Intra-African trade is still estimated at less than two percent (2%) of global trade.
“With these very low levels of trade and investment co-operation in Africa, we must put in place deliberate measures aimed at expanding trade and business collaborations to improve the prospects for prosperity of our peoples,” he added.
The coming into effect of the CFTA, the President was confident, would bring progress and prosperity to the African peoples.
With Africa’s population of 1.2 billion set to expand to 2 billion people in 20 years, the President stressed that “this means that a genuine continental market in Africa should be in our economic interest, for it will present immense opportunities to bring prosperity to the peoples in our continent with hard work, creativity and enterprise.”
It is for this reason that President Akufo-Addo noted that “we should no longer delay the process of African integration. A functioning, common continental market has to be a very fundamental objective of all the peoples and governments on the continent, an objective that will consolidate the process of structural transformation of our national economies on which we must be engaged.”