AfDB’s Hanan Morsy on why African countries perform better integrated

In the recent interview with CNBC Africa, Hanan Morsy, Director of Macroeconomic Forecasting and Research Department at the African Development Bank (AfDB), shared insights on the key theme of regional integration and its importance for the growth of African countries. Morsy highlighted the projections for Africa's GDP growth in 2019, estimated at 4%, but cautioned that this level of growth might not be sufficient to address the employment challenges in the continent. With the labor force expected to grow by 40% by 2030, maintaining a constant level of unemployment would require a growth rate between 4.5% to 7% annually. This underscores the critical need for African countries to focus on strategies that promote sustainable economic development and job creation. Speaking about the African Continental Free Trade Area, Morsy emphasized the potential benefits of the agreement in enhancing intra-African trade and economic integration. Under different scenarios, the agreement could lead to a significant increase in real incomes and trade within the continent. Morsy explained that the degree of commitment and ambition in implementing the free trade agreement would determine the magnitude of the gains. The interview also touched upon the challenges of negotiation and the role of the AfDB in assisting countries in overcoming barriers to integration. Morsy highlighted the importance of removing tariffs, non-tariff barriers, and harmonizing regulatory frameworks to maximize the benefits of the free trade agreement. Additionally, Morsy discussed the need for improvements in visa facilitation and regional infrastructure to further enhance regional integration. While progress has been made in visa policies across Africa, there is still room for improvement to promote free movement of individuals and goods within the continent. Investments in regional infrastructure projects are crucial for supporting economic growth and attracting private sector engagement. Morsy noted that the AfDB is committed to financing regional infrastructure projects and facilitating partnerships with the private sector to drive development across Africa. Overall, the interview underscored the significance of regional integration in unlocking the economic potential of African countries and creating opportunities for sustainable growth and development.