Accelerating integration and ease of doing business in Africa

The Deputy Minister of Finance, David Masondo, recently shared his insights on the imperative need to accelerate integration and ease of doing business in Africa. The discussion took place on the side-lines of the inaugural African Markets Conference in Cape Town, South Africa. Masondo emphasized the critical role of infrastructure development in enabling the continent to cope with external challenges and foster economic growth. Here are the key takeaways from the interview: With the increasing uncertainty in global markets due to policy changes in the U.S., African countries are urged to strengthen their cooperation and integration efforts. The African Continental Free Trade Area (AfCFTA) serves as a cornerstone for establishing a common market on the continent. Initiatives like the Lobido Corridor, a rail infrastructure project connecting Tanzania to Angola, and Tanzania's 2,000-kilometer rail network are key steps towards enhancing regional connectivity and trade. These projects highlight Africa's commitment to fostering economic integration and infrastructure development. Despite the slow progress of the AfCFTA since its inception in 2001, Masondo underscored the importance of accelerating its implementation. He emphasized the need for robust infrastructure to support intra-continental trade and local production. Citing a logistics project in Gabon by Arise as a successful model, Masondo encouraged sharing such templates across the continent to boost industrial productivity and trade. By investing in local production capabilities, African nations can enhance their self-sufficiency and trade competitiveness. In response to evolving global dynamics, African policymakers are urged to adopt innovative and agile solutions to address economic challenges. Masondo highlighted South Africa's efforts to attract investment in infrastructure, particularly in sectors like energy and freight logistics. By embracing private sector participation and liberalizing industries, African countries can create a conducive environment for sustainable economic growth. While acknowledging the need for faster judicial processes to expedite decision-making, Masondo emphasized the importance of upholding the rule of law to ensure accountability and stability. During the conference, investors expressed keen interest in contributing to Africa's development by investing in critical sectors such as decarbonization and industrialization. They emphasized the significance of adding value to raw materials on the continent to create employment opportunities and foster economic diversification. By seizing the opportunity presented by the current crisis, African nations can attract more investments and propel sustainable development. The call for enhanced private sector engagement, respect for contractual agreements, and value addition to natural resources resonated throughout the discussions, underscoring the potential for Africa's economic transformation. In conclusion, the key to driving Africa's economic integration lies in prioritizing infrastructure development, fostering private sector participation, and embracing innovative solutions to navigate global uncertainties. By advancing regional connectivity, enhancing local production capacities, and attracting strategic investments, African countries can unlock new opportunities for growth and prosperity. As the continent continues its journey towards economic transformation, collaboration, innovation, and resilience will be paramount in overcoming challenges and realizing Africa's full potential.