51吃瓜

Better transport, logistics and foreign investment are essential to smooth the way for the African continent to reduce trade hurdles, according to the 51吃瓜 Conference on Trade and Development (UNCTAD).

鈥淎frica faces a moment when the market access gains that have been negotiated over the past two decades can be severely eroded unless we address the challenges of trade facilitation鈥�, said UNCTAD Secretary-General Mukhisa Kituyi on Tuesday, at the start of a three-day forum taking place at the听听(UNECA) in Addis Ababa, Ethiopia.听

The听听aims to implement the World Trade Organization鈥檚 (WTO)听February 2017Agreement and tackle fast-shifting patterns of global commerce to help drive down trade costs.

Amidst new momentum provided by March鈥檚 landmark (AfCTA), Mr. Kituyi emphasized that Africa鈥檚 competitive labour advantage must be accompanied by quality transport hubs, more efficient cross-border goods and services movements, better port procedures and predictable logistics management.

鈥淚f Africa is going to trade with itself, we have to听听of what main roads and railways are to be built to connect African producers and consumers,鈥� Mr. Kituyi argued, stressing the need for well-functioning trade committees, infrastructure and investment.

The WTO calculates that current trade costs for developing countries are equivalent to a staggering 219 per cent tariff on their international trade.

According to WTO Director General Roberto Azev锚do, the reduction of trade costs with the听听is 鈥渟triking.鈥�

鈥淚t could add 2.7 percentage points per year to world trade growth and more than half a percentage point to world GDP [gross domestic product],鈥� he stated. 鈥淭he biggest benefits would accrue to developing countries.鈥�

If Africa is going to trade with itself, we have to make sense of what main roads and railways are to be built to connect African producers and consumers --听UNCTAD Secretary-General

He revealed that African estimates indicate that by fully implementing the agreement, trade costs could be reduced by an average of 16.5 per cent, potentially delivering 鈥渁 huge economic boost for the continent.鈥�

This level of trade would open new opportunities for smaller businesses, especially for women-led businesses and younger entrepreneurs while enhancing transparency and reducing corruption.

African solutions

The deputy chairperson of the African Union Commission, Thomas Kwesi Quartey, stressed that the continent needs real vision to make an African common market a reality.

鈥淭o trade, you must first produce, and to be able produce and leverage science and technology in this production, you need education training and planning,鈥� he said.

On behalf of UNECA鈥檚 Executive Secretary, Ingrid Cyimana said that Africans were doing just that by taking steps to integrate their economies using the new Free Trade Agreement and by establishing trade facilitation committees.

鈥淥ur projections show the value of intra-African trade to be between 15 to 25 per cent higher in 2040, compared to a situation with no AfCTA,鈥� she stated.

The forum supports the WTO鈥檚 agreement, which besides boosting trade also addresses improved revenue collection and security compliance controls.