Sam Maimbo on trade shocks, U.S tariffs and fast-tracking AfCFTA

Trade tensions are escalating globally, posing significant challenges for Africa's economic future. In a recent interview with CNBC Africa, Sam Maimbo, a prominent candidate for the AfDB presidency, discussed the disruptive impact of U.S. tariffs, the urgency of expediting the African Continental Free Trade Agreement (AfCFTA), and emphasized the crucial importance of addressing poverty and unemployment on the continent. Maimbo highlighted the need for African nations to reduce internal tariffs and enhance regional trade cooperation to navigate the turbulent global economic landscape. He underlined the imperative of implementing AfCFTA swiftly to bolster Africa's resilience and competitiveness in the long run. Maimbo stressed the significance of proactive industrial development strategies for African economies. He emphasized the need for collaboration among neighboring countries, the private sector, and key stakeholders to drive growth and job creation. Acknowledging the dominance of small and medium enterprises (SMEs) in Africa's informal sector, Maimbo emphasized the importance of empowering these businesses to foster economic growth and employment opportunities. In addition, he emphasized the critical role of financial institutions in supporting SMEs and diversifying sources of financing beyond traditional means. Maimbo encouraged leveraging sovereign wealth funds, pension funds, and private sector partnerships to catalyze investments and drive economic expansion on the continent. The interview also touched upon the significance of digital transformation and the pivotal role of youth and women in shaping Africa's future. Maimbo underscored the potential of digitization to propel Africa forward but emphasized the need for robust digital infrastructure and inclusive representation of African languages and cultures in technological advancements. He championed the empowerment of youth and women in driving innovation and human capital development, emphasizing the importance of telling an authentic and diverse African narrative. Ultimately, Maimbo's insights shed light on the challenges and opportunities facing Africa amid global trade disruptions, underscoring the urgent need for proactive measures to ensure the continent's economic resilience and sustainable growth.