Public Management

Central Africa could be the continent’s rising star, thanks to the African Continental Free Trade Area

Central Africa could be the continent’s rising star, thanks to the African Continental Free Trade Area
Tuesday, 11 June 2019 19:54

Central Africa stands to benefit the most from the African Continental Free Trade Area (AfCFTA), data from the African Development Bank shows.

Hanan Morsy, Director of Research at the Bank, revealed the findings at the launch of one of the Bank’s flagship reports in Malabo, where the African Development Bank is hosting its Annual Meetings.

Morsy said Central Africa’s real income could increase by as much as 7% in one of the scenarios that researchers describe in the 2019 African Economic Outlook. By the same calculations, East Africa, currently the star performer on the continent, would experience an increase of around 4.2%, followed closely by North Africa.

The scenarios measure the potential outcomes of the AfCFTA, ranging from one (least impact) to four (greatest impact).

While there are differences in gains, all African countries are better off with regional integration than without,” Morsy said.

Morsy said current levels of growth were not adequate to generate jobs for millions of unemployed Africans, but regional integration could stimulate the growth needed to make a dent in unemployment. Morsy said Africa needed to grow between 4% and 6% in order to turn the tide.

The Outlook predicts that Africa can add 4.5% to its GDP, provided that governments do away with bilateral tariffs and non-tariff barriers and keep rules of origin simple.

The launch included a panel discussion by Finance and Economic Planning Ministers, who are also Governors of the Bank.

Aïchatou Kané, from Niger, said the Economic Community of West African States, ECOWAS, was in the “fast lane” of integration and planned to have its own currency in 12 months.

Kané’s comments were echoed by Burkina Faso, Zimbabwe, and Tanzania who all agreed that integration would help the continent remain relevant as a global economic player.

Regional integration is one of the Bank’s High 5 strategic areas and the theme of the 2019 Annual Meetings. The AfCFTA is the cornerstone of the integration project. The AfCFTA was launched in March 2018 and the key 22nd ratification was received in April 2019. The next step is for African ministers of trade to work on how to facilitate the launch of the AfCFTA during a summit meeting on 7 July 2019.

The AfCFTA will constitute the world’s largest free trade area, consolidating an integrated market of 1.3 billion consumers with a combined gross domestic product (GDP) of about $3.3-trillion. It is estimated that Africa’s GDP growth could reach 6% a year with a borderless continent (UNECA).

The four-day Annual Meetings are being hosted in Malabo, the capital of Equatorial Guinea. More than 2,000 ministers, government officials, development partners and civil society representatives have gathered in the island capital to discuss Africa’s development agenda.

24968 in Agency agrf jennifer blanke agrf afdb copy

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Ci Gaba VC Limited secures $34.9 million in its first close, targeting a final $90 million (1 billion GHS). The fund-of-funds invests in...
Cameroon, Congo, and Gabon seek new IMF programs after previous ones expired Regional bloc commits to sustaining reforms and rebuilding...
Program has supported about 50 women-led businesses since 2023 Nearly CFA7 billion mobilized combining financing and technical support New cohort of...
Proparco and RMBV take minority stake through $91 million capital increase Funds to support industrial expansion and West Africa growth Group...
Most Read
01

Firms move beyond payments toward integrated SME platforms Services include invoicing, inve...

African fintechs are moving beyond payments - and into business operations
02

The BCEAO now allows UEMOA citizens abroad to open CFA franc accounts under the same conditions as...

West Africa Targets Diaspora Funds With New Banking Access Rules
03

UBA UK, BII sign intent to expand trade finance in Africa Partnership targets funding gaps for in...

UBA, British International Investment explore Africa trade finance deal
04

Ghana to submit UN resolution on slave trade March 25 Draft seeks recognition as gravest crime ag...

Ghana pushes UN recognition of slave trade as crime against humanity
05

ECOWAS, Energy China discuss regional power infrastructure cooperation Talks cover $36.3...

ECOWAS, China Discuss Cooperation on West Africa Power Projects Under $36.39B Plan
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.