Why Africa must seize the moment to make AfCFTA work

International trade with Africa has continued to decline, standing at a mere 2 per cent as global fragilities widen. CNBC Africa recently interviewed Dr. Mukhisa Kituyi, Former Secretary-General of UNCTAD, to discuss strategies for increasing intra-African trade and realizing the potential of the African Continental Free Trade Area (AfCFTA). Dr. Kituyi highlighted the annual African trade and development conference as a critical platform for ministers, heads of regional integration commissions, and thought leaders to address the failings, opportunities, and challenges in African trade. While Africa's international trade has been decreasing, intra-African trade has remained relatively stable, but there is still room for improvement. One of the key challenges identified is the inadequate implementation of one-stop border posts, hindering the seamless movement of goods across borders. Dr. Kituyi emphasized the importance of leveraging technology for digital certificates of origin and tracking goods to enhance efficiency and reduce barriers to trade. Discrepancies in regional practices were noted, with some corridors demonstrating effective processes, while others lag behind. Another significant hurdle is the issue of rules of origin, particularly for more industrialized African countries. Ensuring the integrity of certificates and preventing third-party countries from exploiting trade agreements is crucial for building trust and promoting intra-African trade. Dr. Kituyi also highlighted the changing global landscape, emphasizing the need for Africa to focus on regional trade amid rising protectionism. The conversation shifted to the potential of intra-African trade, which currently stands at around 15%, and Africa's modest share of global trade at 2%. Dr. Kituyi emphasized the importance of improving the quality and efficiency of African goods to compete with imports. By investing in productive capacity and reducing tariffs, African countries can enhance their competitiveness in local and international markets. To facilitate trade growth, Dr. Kituyi stressed the need for infrastructure development, streamlined trade procedures, and market intelligence. Simplifying transactional rules, cutting red tape, and utilizing digital tools for comparing tariff regimes within Africa can address existing trade challenges. In addressing the decline in trade numbers, Dr. Kituyi urged African leaders to prioritize fiscal discipline and focus on productive sectors to stimulate economic growth. By curbing excessive government spending, investing in capital goods, and empowering the private sector, countries can create opportunities for job creation and sustainable development. The message is clear: Africa must seize the moment to unlock its trade potential. By implementing strategic reforms, investing in infrastructure, and promoting intra-African trade, countries can propel the AfCFTA forward and drive economic prosperity across the continent.