Addis Ababa, 18 March 2025 (ECA) - The African Continental Free Trade Area is “Africa’s master plan for economic renewal,” ECA Executive Secretary Claver Gatete said at the 2025 Conference of African Ministers of Finance, Planning and Economic Development.
“As we convene, we do so against the backdrop of a precarious global economic terrain characterized by heightened geopolitical tensions, shifting alliances, unjust trade tariffs and mounting debt crises,” he said.
Pointing to the recalibration of economic power, Gatete said countries in the Global South, including those in Africa, had no choice but to adapt to the rapidly evolving global economic situation.
Gatete said the AfCFTA has the potential to boost the continent's economic fortunes. “By 2045, it is projected to increase intra-African trade by 45% and enhance Africa’s GDP by 1.2%. The AfCFTA will also significantly boost expansion in sectors such as agri-food by 60%, industry by 48%, services by 34%, and energy and mining by 28%.”
For African countries to enjoy the full benefits of the trade agreement, Gatete proposed the strengthening of partnerships, including investment partnerships. “It is imperative that governments work closely with the private sector to derisk business environments and eliminate non-tariff barriers.”
In addition, he said, regional value chains and special economic zones must be strengthened. “ECA’s collaboration with institutions like BADEA, African Development Bank, Afreximbank and the Africa Finance Corporation has already demonstrated results ranging from Botswana’s beef regional value chain and East Africa’s food systems development to the DRC–Zambia battery value chain.”
Gatete also called on African countries to mobilise domestic resources for industrialization and curb illicit financial flows. He stressed that Africa does not lack capital but is challenged in channelling it into productive sectors.
“Our pension funds alone hold approximately $1.3 trillion in assets. If just 10% was invested in industrialization, Africa could inject over $130bn into its industrial base, reducing reliance on expensive external financing.”
The success of the AfCFTA, Gatete emphasised, requires bold action, strong political will and sustained commitment, with its priorities integrated into national development plans and budgets allocated to its commitments.
Issued by:
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Economic Commission for Africa
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