World Bank: Diverse participation by Africa in global trade key for economic transformation

The World Bank has released a new book emphasizing the need for African countries to expand and diversify their participation in international trade and global value chains in order to reduce poverty and transform their economies. In a recent interview on CNBC Africa, Albert Zeufack, the World Bank's Chief Economist for Africa, discussed the key messages outlined in the book and the strategies that African nations can adopt to achieve economic transformation. The book highlights the changing global trade environment influenced by factors such as the COVID-19 pandemic, digital revolution, rising trade tensions, and regional trade agreements. Zeufack stressed the importance of Africa reassessing existing trade agreements with traditional partners to ensure they generate export diversification and job creation for the continent's youth. Furthermore, the book urges African countries to explore new markets such as Asia and negotiate market access in growing economies. Zeufack emphasized the significance of the Africa Continental Free Trade Area (AfCFTA) as a platform for implementing market policies and positioning Africa to benefit from global trade opportunities. Despite the continent's longstanding low contribution to global trade, Zeufack believes that innovative trade policies and increased market access could lead to a significant shift in Africa's trade landscape. Addressing the financial implications of transitioning to new trade strategies, Zeufack proposed a three-pronged approach. This approach includes evaluating access to traditional markets, negotiating access to emerging markets, such as China and India, and deepening regional value chains through initiatives like the AfCFTA. By leveraging existing regional integration efforts and reducing non-tariff barriers, African nations can enhance trade facilitation and drive economic growth. The role of international organizations like the World Trade Organization (WTO) and the African Continental Free Trade Area Secretariat was also highlighted in the discussion. Zeufack underscored the importance of collaborative efforts between these entities to reform trade rules, address non-tariff barriers, and promote job creation and investment in value-added products within Africa. In a time where global trade systems have not adequately benefitted African youth, Zeufack emphasized the potential of initiatives like the AfCFTA to redefine global trade dynamics and create opportunities for economic empowerment on the continent. By embracing innovative trade policies, engaging new markets, and fostering regional integration, African countries can pave the way for sustainable economic transformation and inclusive growth in the region.