Juliet Jacob Ochenje
Vice President Kashim Shettima has highlighted the potential of the African Continental Free Trade Area (AfCFTA) to significantly increase the continent’s Gross Domestic Product (GDP) by $450 billion in 2035.
Quoting the World Bank, he emphasised that the free trade area could also lead to an 81% increase in exports.
Shettima made these remarks on Thursday at a breakfast event with African Heads of State during the ongoing World Economic Forum in Davos, Switzerland.
During the event, the VP urged African leaders to raise trade targets and eliminate obstacles to facilitate smooth trading activities across the continent.
He said: “African trade will be boosted by 52.3% by 2025. We should increase these targets and look at the trillions of dollars. African countries need to move quickly to iron out whatever agreements and impediments are remaining to ensure free and smooth trade. Issues around rules of origin negotiations must be completed, increasing the trade agreement from its current 15% to a higher level.”
To achieve these objectives, the VP recommended optimising and prioritising information sharing with private sector players, emphasising that trade is a private sector imperative facilitated by governments.
He expressed concern over the slow pace of negotiations and called for cohesion among African countries to ensure the success of AfCFTA.
Shettima also urged Africa’s private sector players to take proactive steps to enhance their role in intra-Africa trade.
He emphasised the need for African leaders to empower countries on the continent and solve their problems, citing the example of trade unions in Europe, the Americas, and Asia.
