We can optimize intra-African trade if we do what is required, says Janneh

ECA Press Release No. 140/2011

Executive Secretary of ECA, Mr. Abdoulie Janneh

Addis Ababa, 22 November 2011 (ECA) - The Africa Trade Forum opened today on the theme:Accelerating Intra-African Trade and Enhancing Africa’s Participation in Global Trade- with approximately 400 participants representing the width and breadth of the African trade constituency in attendance. According to the Information and Communication Service of the United Nations Economic Commission for Africa (ECA), this inaugural forum seeks to respond to the question, “Can Africa Trade itself out of poverty?

Speaking at the opening, Under Secretary-General and ECA’s Executive Secretary, Abdoulie Janneh said that Africa’s share of global trade remains low at about 3% and continues to be dominated by primary commodity exports.

He pointed out however, that there is cause to be more upbeat about Africa’s trade prospects if we look at developments at the sub-regional and national level.

He also noted that there is much that can be done to reap gains from intra-African trade and expressed optimism on the scope for expansion in regional trade, with intra-Africa trade at just about 11% of total trade as compared to 72% in Europe and 52% in Asia.

“Africa must perforce explore and utilize the benefits of regional value chains starting with the important agro-processing sector,”he opined.

According to Janneh, thisinaugural African Trade Forum provides the African trade constituency with an opportunity to build on the success stories in intra-African trade in spite of various constraints.

He also highlighted what he saw as encouraging signs emerging from ECA’s analysis to be published in the forthcoming Economic Report on Africa 2012 and said some regional economic communities have exceeded the average intra-African trade growth.

“The intra-COMESA trade is growing by at least 35.4 per cent between 2009 and 2010, rising from US$12.7 billion to $17.2 billion,” he added.

He further lauded the efforts by the EAC, COMESA and SADC for committing themselves to realizing by 2014 a Free Trade Area (FTA) that will be based not just on market integration, but on shared benefits through industrialization and infrastructure development.

He emphasized that harmonization of RECs trade policies through a continental FTA would result to an additional US$34 billion in intra-African exports, “just from eliminating current intra- and inter-RECs tariffs,” He said.

He added that when the non-tariff barriers are also tackled through improved trade facilitation, intra-African trade could rise to about 22% in the next 10 years, “all of which goes to show that if we do what is required, we can optimize intra-African trade.”

Deputy Chair of the African Union Commission, Mr. Erastus Muencha expressed optimism at the prospect of increasing both intra-African trade and trade with the rest of the world and noted that the coming month is crucial as African leaders work towards establishing a Continental Free Trade area by 2017.

“The establishment of the EAC, COMESA and SADC FTA is a win-win, he said and added that there is already evidence of growing diversification within the FTA, which should in turn help in identifying our competitiveness vis a vis global trade.”

“Furthermore, these efforts can go along way and help position ourselves better vis a vis the stalled Doha Rounds,” he added.

:: Opening Remarks by Mr. Abdoulie Janneh, UN Under-Secretary-General and Executive Secretary of ECA

Issued by:

ECA Information and Communication Service
P.O. Box 3001
Addis Ababa
Ethiopia

Tel: 251 11 5445098
Fax: +251-11-551 03 65
E-mail: ecainfo@uneca.org
Web: www.uneca.org  

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