ADDIS ABABA, Ethiopia — The African Continental Free Trade Area (AfCFTA) is poised to offer significant opportunities for expanding and diversifying the exports and imports of the continent.
According to Ethiopian News Agency, Director of the Macroeconomics and Governance Division at the United Nations Economic Commission for Africa (UNECA).
In an exclusive interview with ENA, Elhiraika discussed the impact of the AfCFTA, which stands as the world’s largest free trade area encompassing 55 signatory countries and eight Regional Economic Communities (RECs). The AfCFTA aims to facilitate the free movement of goods and services across Africa, thereby enhancing the continent’s trading position on the global stage.
Elhiraika highlighted the importance of not only increasing the value but also the quality of exports. He emphasized the need for value addition to primary commodities and domestic production of goods that are currently imported. The director underlined that industrialization and value addition efforts must be intensified, and regional markets in Africa should be explored for potential trade expansion.
The UNECA director pointed out that the future growth and development of Africa will increasingly depend on the implementation of the continental free trade area. AfCFTA’s mandate includes eliminating trade barriers and boosting intra-Africa trade, particularly in value-added production across all service sectors of the African economy.
Elhiraika underscored the vast opportunities the AfCFTA agreement offers for expanding and diversifying exports and imports within the continent. He also addressed the importance of domestic growth drivers in Africa, advocating for expansionary fiscal and monetary policies, even amidst challenges like inflation and instability. The director stressed the necessity to focus on enhancing growth through increased domestic expenditure on infrastructure and attracting more domestic and foreign investments.