The United Nations Economic Commission for Africa (UNECA) has called for the leveraging of the African Continental Free Trade Area (AfCFTA) agreement to accelerate industrialisation in the continent.
The ministers made the call at the commission’s ongoing 53rd Conference of Ministers of Finance and Economic, Planning and Development in Addis Ababa on Monday.
Ghana’s Minister of Finance, Mr Ken Ofori-Atta, said the pandemic had shown that Africa’s economic prosperity hinged on expanding regional value chains to support manufacturing and job creation.
Ofori-Atta reiterated that the AfCFTA was the largest trade bloc by country participation which made it easier for businesses to reach more economies of scale.
He further said it promoted regional value chains and lowered the cross-border costs of trading for enterprises, companies and consumers.
“With the commencement of the AfCFTA, we must ensure that the financial mechanisms are in place to support trading.
“The pilot phase of the Pan African Payments and Settlements System (PAPSS) will commence piloting in six countries in April 2021 and fully launch in June 2021.
“The integration of PAPSS into the central banks will enable intra-African trade to be paid for in our national currencies. This is a crucial trade facilitation step for our Continent.
“I call on all finance ministers and governors to support rapid continent-wide implementation.”
The minister added that the agreement, supported by certain financial initiatives, would become an essential tool for deepening financial capital markets and boosting innovation to unlock Africa’s potential.
He further added that Africa needed to accelerate digitalisation to deepen public service delivery and transformation and to “stop importing unnecessary things” to revitalise its economy.
Also speaking, Mr Mohamed Benchaâboun, Minister of Economy, Finance and Administration Reform, Morocco said that Africa’s industrialisation would boost its resilience and diversify economies.
Benchaâboun also said it would increase the continent’s productivity and improve its capacity to create more jobs.
“The launching in Jan. 1 of the operational phase of the free trade area of the AfCFTA is in this respect a major step forward which definitely acts as a catalyst to the industrialisation of our continent by abolishing inter-African barriers and also encouraging the development of regional ecosystems.”
The minister added that the mobilisation of new funding resources, especially through Public-Private Partnerships, would become of utmost importance in supporting Africa’s economic transformation.
Furthermore, Ethiopia’s Prime Minister, Abiy Ahmed said countries needed to get “three crucial agenda items right” to strengthen economies.
“The digital economy, the climate-smart economy and an institutional framework for implementation and accountability. “
Ahmed called on policymakers to do more to support the digital transformation agenda and technology savvy youths.
The hybrid conference has as its theme “Africa’s Sustainable Industrialisation and Diversification in the Digital Era in the Context of COVID-19”. (NAN)
