By Africa Links 24
Published on 2024-02-16 10:59:51
Trade and industrialization are increasingly becoming the focal points in Africa, as policymakers search for more effective and sustainable solutions to the continent’s developmental challenges. During the 2024 World Economic Forum, a breakfast discussion on how Africa can change its growth trajectory in a challenging global environment brought together Enoch Godongwana, South Africa’s Minister of Finance; Ebrahim Patel, Minister of Trade, Industry, and Competition; Wamkele Mene, Secretary-General at the African Continental Free Trade Area (AfCFTA) Secretariat, and Christine Cook, Global Chief Revenue Officer of Bloomberg Media.
Patel highlighted the challenges posed by a more divisive and volatile world, the impacts of the Covid-19 experience, and the war in Ukraine, which has brought into sharp focus “the enormous expense that we all incur when you have supply chain disruptions”. With Africa accounting for 17% of the world’s population and only 3% of global GDP, Patel stressed the need for a new approach. “We need a new grand bargain as Africans that will unlock the opportunity for industrialization,” he added.
As Africa is set to soon overtake China and India in population, Patel emphasized the need for a change in the relationship between Africa and the rest of the world and a focus on technology that will facilitate leapfrogging, similar to what had occurred in the telecommunications space at the start of this century. He also mentioned that the AfCFTA can unite the continent’s separate entities and give it greater bargaining power as it seeks to “leverage mineral resources to fuel a drive for industrialization”.
Mene noted that the environment of crisis within which the AfCFTA was born has only intensified, with significant adverse impacts on the continent. Africa’s exports to the European Union reduced by over 40% in the wake of the crises, emphasizing the need for concrete steps towards self-sufficiency and the establishment of continental supply chains to address current and future crises. He pointed to the AfCFTA as a crucial response, with a focus on sectors such as pharmaceuticals and agriculture. Africa imports $50 billion worth of food annually, despite having significant production capacity.
Godongwana stressed the significance of addressing climate change and the need for investments in energy and trade facilitation infrastructure to ensure the success of the AfCTFA. In South Africa, he highlighted massive structural reforms in the energy sector, logistics, and skills to reposition the country for growth and competitiveness.
The discussions highlighted the growing importance of trade and industrialization in Africa, addressing the need for self-sufficiency, the challenges posed by a volatile global environment, and the role of the AfCFTA in uniting the continent and driving industrial development.
The conversation underscored the necessity of a new approach to African development, one that prioritizes technology and self-sufficiency to address challenges and leverage opportunities for growth and industrialization. It also emphasized the importance of continental cooperation, infrastructure investment, and sector-specific strategies to enhance Africa’s competitiveness and long-term sustainability.
