https://www.engineeringnews.co.za
Africa|Automotive|Innovation|Manufacturing|Paper|PROJECT|supply-chain|Manufacturing |Products|Infrastructure
Africa|Automotive|Innovation|Manufacturing|Paper|PROJECT|supply-chain|Manufacturing |Products|Infrastructure
africa|automotive|innovation|manufacturing|paper|project|supply chain|manufacturing-industry-term|products|infrastructure

AfCFTA holds ‘immense potential’ for Africa, says WEF report

26th January 2021

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

The African Continental Free Trade Area (AfCFTA) holds “immense potential” for the social and economic development of Africa, as renewing the rules of trade will facilitate better cooperation to boost growth, reduce poverty and broaden economic inclusion, says the World Economic Forum (WEF) .

AfCFTA, which was launched this month, is the world’s biggest free trade area and Africa’s most ambitious and recent effort to liberalise trade.

“Renewing the rules of trading will facilitate better cooperation to boost growth, reduce poverty and broaden economic inclusion,” WEF president Borge Brende said on Tuesday.

Launching the ‘Connecting Countries and Cities for Regional Value Chain Integration – Operationalising the AfCFTA’ report, he said the WEF had sought to provide policy advice for accelerating the expansion of regional value chains in emerging manufacturing economies, such as the automotive industry.

“It is perhaps the most ambitious free trade project since the creation of the World Trade Organisation itself. Actively promoting trade liberalisation to encourage new areas of growth is a pragmatic response to the reduction in global trade [owing] to the Covid-19 pandemic and will position Africa as an enhanced destination for investment from multinationals,” commented Deloitte Africa emerging markets MD Martyn Davies.

Although the continent can do little to counter the global forces inclining towards deglobalisation, it can embrace a self-supportive regionalism through enhanced intra-African trade, he suggested.

Insufficient and inert inter-linkages between African economies have exacerbated the impact of the Covid-19 pandemic on the continent’s supply chains. Yet, Davies noted that from local production of essential products to improving port and customs efficiencies (often flagged as a challenge in Africa) the response to the pandemic illustrated how meaningful impact is created through collaborative efforts.

“Successfully implemented, current efforts by the African Union will stimulate trade as well as deepen and create new regional value chains in Africa. Lessons learned should be applied to improving production capabilities in other industries so that economic and trade benefits can be realised.”
 
The WEF paper is part of a series investigating five ways to drive economic recovery and build resilience in the context of the AfCFTA Agreement, namely new financing models for rapid recovery; unlocking manufacturing to mitigate global supply chain risks; leveraging integration and regional value chains; revitalizing infrastructure and connectivity; and scaling up digital transformation and inclusive innovation.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 
Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024
Photo of Martin Creamer
On-The-Air (10/05/2024)
10th May 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.299 0.354s - 161pq - 2rq
Subscribe Now