Interview: Gabby Asare Otchere-Darko
Where do you identify key trade enablers that can boost continental industrialisation?
GABBY ASARE OTCHERE-DARKO: The implementation of the African Continental Free Trade Area (AfCFTA) by 2040 is expected to boost intra-African exports by 15-25%, lift 30-50m Africans out of extreme poverty and promote industrialisation. Improving Customs and border procedures could boost global trade by up to $1trn annually, with the removal of non-trade barriers resulting in $20bn in trade gains, compared to $3.6bn that could be achieved by eliminating tariffs. These conservative estimates suggest Africa needs to accelerate AfCFTA implementation, which will require the private sector’s focus, business plans and collaboration with public sector leadership to achieve even more ambitious goals.
Investment in infrastructure, digital connectivity and digital solutions are key to trade and business in Africa. Facilitating access to trade finance and leveraging the capacity of financial institutions are crucial for empowering the private sector, building manufacturing capabilities and enhancing product value. The African Union’s Action Plan for Boosting Intra-Africa Trade highlights constraints on intra-Africa trade growth such as trade regime differences, Customs procedures, inadequate infrastructure and internal market issues.
How does the AfCFTA foster economic integration, and to what extent can this transform the economy?
OTCHERE-DARKO: The AfCFTA promotes integration through market access, trade facilitation and the creation of regional value chains. The agreement is expected to transform Ghana’s economy through the creation of larger markets, increased exports, the development of regional value chains, specialisation, industrialisation and diversification of the export base, in turn enhancing competitiveness and creating jobs.
It will be crucial for Ghana to take action to leverage AfCFTA opportunities and implement its national strategy. In August 2022 the country launched the National AfCFTA Policy Framework and Action Plan to deepen penetration in African markets and boost trade.
Which factors could influence the success of regional economic integration via the AfCFTA?
OTCHERE-DARKO: Context-specific approaches are required to fully leverage the agreement’s benefits, as well as ensure inclusiveness and reduce disparities associated with varying levels of industrialisation. The AfCFTA can significantly impact economic integration among African countries by fostering cooperation and unity despite varying degrees of economic development and disparities. Africa’s rapidly growing and young population, and rich natural resources – including 65% of Earth’s arable land – offer a valuable basis for development. While more needs to be done, significant investment has been made in Africa’s digital ecosystem, highlighting its increasing significance in driving the economy and creating commercial opportunities.
In what ways can African business leaders and governments collaborate to support integrated digital payment systems and attract global investors?
OTCHERE-DARKO: Governments across the continent can foster public-private partnerships to promote infrastructure development, innovation and the adoption of technological solutions. Business leaders should actively participate, providing expertise and resources to support joint ventures that will benefit both the public and private sectors. Governments should strengthen investment promotion agencies to highlight investment opportunities, attract foreign investors and enable collaboration with African business leaders.
Improving trade information quality is crucial for international investors. Governments can offer market research and intelligence, while the private sector can share insights. Collaboration between governments and the private sector can enhance Africa’s attractiveness, foster economic growth and maximise AfCFTA benefits.
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