During last week’s 5th anniversary celebration of the Council on Foreign Relations Ghana in Accra, President Nana Addo Dankwa Akufo-Addo underscored the African Continental Free Trade Area (AfCFTA) Agreement’s potential to drive economic integration and industrialization across Africa.
Addressing the theme “The Limits of the Current Development Cooperation Framework for Africa’s Transformation,” President Akufo-Addo hailed the AfCFTA as a pivotal element of the continent’s new development cooperation paradigm.
He described the agreement as a transformative initiative to enhance intra-African trade, spur industrialization, and foster economic unity.
“The AfCFTA represents a bold and transformative step towards creating a single market for goods and services across 54 countries and more than 1.3 billion people,” President Akufo-Addo said.
He cited a United Nations Economic Commission for Africa (UNECA) report projecting a 34% increase in intra-African trade by 2045 due to the AfCFTA.
The President emphasized that economic integration under the AfCFTA could lead to economies of scale, heightened competitiveness, and expanded market access for African businesses.
He highlighted that one of Africa’s critical challenges is its reliance on exporting raw materials with minimal value addition.
He argued that the AfCFTA provides an opportunity to transition towards greater industrialization and value addition by fostering a larger market for manufactured goods and promoting regional value chains.
The AfCFTA has the potential to generate jobs and stimulate economic growth throughout the continent by boosting investment in manufacturing and processing sectors.
“The establishment of a continental free trade area should enhance Africa’s attractiveness as an investment destination,” President Akufo-Addo said, noting that the agreement could create a more predictable and stable business environment, thus drawing domestic and foreign investment.
The President also addressed the role of small and medium enterprises (SMEs) in Africa’s economic landscape, acknowledging their significant contributions to employment and income generation.
He pointed out the challenges SMEs face, including market access, financing, and regulatory constraints. He argued that the AfCFTA could offer new opportunities by expanding market reach and reducing trade barriers.
President Akufo-Addo highlighted the recently launched SME Growth and Opportunity Programme in Ghana, which aims to provide targeted financing and technical assistance to SMEs.
He described this initiative as crucial to developing a robust SME ecosystem to enable high-growth potential businesses to scale and positively impact their communities.
In conclusion, President Akufo-Addo reaffirmed the AfCFTA’s transformative potential, asserting that it is central to the new development cooperation framework for Africa.
He expressed confidence that leveraging the AfCFTA’s opportunities will lead to greater economic integration, industrialization, and inclusive growth, aligning with the continent’s aspirations for transformative change.
