57TH SESSION OF THE CONFERENCE OF MINISTERS OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT
Theme:
Advancing the implementation of the Agreement
Establishing the African Continental Free Trade Area: proposing transformative strategic actions
Statement By
Mr. Claver Gatete
United Nations Under-Secretary-General and Executive Secretary of ECA
UNCC, Addis Ababa, Ethiopia
17 March 2025
Your Excellency, Taye Atske Selassie, President of the Federal Democratic Republic of Ethiopia,
Your Excellency, Mahmoud Ali Youssouf, Chairperson of the African Union Commission,
Your Excellency, Oluyemi Osinbajo, Former Vice- President of the Republic of Nigeria,
Your Excellency, Wamkele Mene, Secretary-General of the Secretariat of the African Continental Free Trade Area,
Honourable Professor Mthuli Ncube, Minister of Finance, Economic Development and Investment Promotion of the Republic of Zimbabwe, and Chair of the Outgoing Bureau,
Honourable Ministers, Distinguished Delegates:
It gives me great pleasure to welcome you all to the 57th Session of our Conference of Ministers under the critical theme of “Advancing the implementation of the Agreement Establishing the African Continental Free Trade Area: proposing transformative strategic actions.”
I wish to begin by expressing my gratitude to His Excellency, President Taye Atske Selassie and, through him, to the Government and people of the Federal Democratic Republic of Ethiopia for their gracious hospitality and continued support as we meet at this defining moment in Africa’s economic journey.
Let me also take this opportunity to warmly congratulate His Excellency, Mahmoud Ali Youssouf on his election as Chairperson of the African Union Commission, and assure him of our commitment to work with him for the advancement of our continent.
Allow me to also thank His Excellency, Wamkele Mene, the Secretary General of the AfCFTA Secretariat for his leadership at this critical stage in the development of this important institution.
I also wish to recognize Professor Mthuli Ncube, our Chair of the Outgoing Bureau, for his exemplary leadership in steering our Bureau and laying a firm foundation for the work we are undertaking today.
Excellencies, Distinguished Delegates,
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.
From conflicts affecting key supply chains to the ongoing recalibration of economic power, nations especially those in the Global South, including Africa, have no other choice than to adapt to a rapidly evolving landscape.
As of today, half of the world’s 68 poorest countries – most of them in Africa – are either at high risk of, or already in, debt distress.
The fact that this figure has more than doubled since 2015 highlights the critical nature of the situation.
Even more troubling is the fact that African countries are spending up to 16% of their export earnings solely on debt servicing, which is more than three times the level applied to Germany during its post-World War II reconstruction.
Between 2017 and 2023, the cost of servicing external debt for developing nations rose by nearly 12% per year, outpacing the growth in exports and remittances.
Indeed, 2025 is a crucial year for the continent, with key debt discussions scheduled at the Financing for Development (FFD4) in Seville, Spain, and with South Africa placing debt at the forefront of its G20 presidency.
These engagements are vital because with debt servicing at more than US$90 billion annually, our continent is being forced to divert critical resources away from developmental priorities.
Compounding these challenges, Africa’s fiscal space continues to shrink, which limits governments’ ability to invest in the pillars of sustainable development, such as infrastructure, healthcare and education.
However, we must ask ourselves: is this the economic destiny we accept?
Or do we seize this moment to reshape Africa’s financial architecture, leveraging our vast potential to accelerate trade-led growth?
Excellencies, Distinguished Delegates,
The answer lies in our hands.
And in the AfCFTA, we have Africa’s master plan for economic renewal.
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 expansions in sectors such as agri-food by 60%, industry by 48%, services by 34%, and energy and mining by 28%.
It is simply illogical that African countries face higher tariffs when exporting within the continent than when exporting outside of it.
However, it is certainly a welcome development, that with the AfCFTA, participating countries will remove tariffs on 90% of goods they produce, and eliminate other non-tariff barriers to trade, including regulatory bottlenecks that impede trade.
But beyond these, the AfCFTA is also a powerful tool for inclusion and economic integration – leaving no country behind.
For example, we know that historically, landlocked developing countries (LLDCs) have been disadvantaged by high trade costs and limited access to global markets.
Today, through the AfCFTA, Africa’s 16 LLDCs have a unique opportunity to break free from these geographical disadvantages and boost their economic growth.
Excellencies, Distinguished Delegates,
These gains, however, will remain hypothetical unless we move beyond ratification to full-scale implementation.
Accordingly, to achieve the AfCFTA’s full potential, I propose four strategic actions:
First, we must strengthen partnerships and investment platforms.
Permit me to share that ECA, at the eighth edition of the Africa Business Forum last month, reaffirmed its commitment to bridging the gap between policymakers and investors.
This Forum underscored the urgency of accelerating AfCFTA implementation through regional value chains, public-private partnerships and expanded financial support for trade and industrialization.
A key milestone was the signing of the Memorandum of Understanding (MoU) between ECA and the AfCFTA Secretariat to cement our commitment to trade integration, industrialization and private sector development.
To this end, it is imperative that governments work closely with the private sector to de-risk business environments and eliminate non-tariff barriers.
However, it is of utmost importance that Africa’s economic transformation be designed and driven from within, and not dictated from outside.
Also, we must recognize that the Regional Economic Communities (RECs) are vital to the AfCFTA as they serve as key drivers of regional integration through trade agreements, infrastructure development and policy harmonization.
It is crucial that we strengthen their role within the AfCFTA to accelerate trade facilitation, enhance economic convergence and ensure inclusive continental integration.
Second, we must strengthen regional value chains and special economic zones.
ECA’s collaboration with institutions like BADEA, African Development Bank, Afreximbank and the Africa Finance Corporation has already demonstrated results from Botswana’s beef regional value chain and Eastern Africa’s food systems development to the DRC – Zambia battery value chain.
We must scale up Special Economic Zones across Africa to attract investment, spur innovation and create jobs.
Third, we must mobilize domestic resources for industrialization and curb illicit financial flows.
Africa does not lack capital; rather, it lacks mechanisms to channel it effectively.
For example, our pension funds alone hold approximately US$1.3 trillion in assets.
If just 10% were channeled into productive sectors, we would inject over US$130 billion into Africa’s industrial base, and this will most certainly reduce dependence on costly external financing.
Additionally, illicit financial flows siphon US$88 billion annually from Africa.
To address this, ECA and United Nations Conference on Trade and Development (UNCTAD) are already assisting 12 African nations to track and stem these losses.
But more can be done including strengthening tax administration, digitizing taxation, broadening tax bases and leveraging innovative instruments like debt-for- climate and debt-for-development swaps.
Likewise, we must develop local currency bond markets, establish regional stock exchanges and improve sovereign credit ratings to attract international investment at lower costs.
Finally, we must enhance infrastructure and digital connectivity.
Africa requires over US$120 billion annually to bridge its infrastructure gap.
How can we build competitive regional supply chains when goods take weeks to move across borders due to inadequate roads, rail and air transport and inefficient ports?
In this respect, expediting the African Integrated High- Speed Railway Network and the Single African Air Transport Market is critical.
Moreover, in an era where digital trade accounts for 25% of global commerce, only 37% of Africans have internet access.
This is unacceptable.
In addition, the over-taxation of technology continues to hinder progress in this critical sector.
To tackle this challenge, the ECA has released a report based on its ICT Tax Model, for your consideration, designed to present a practical solution that ensures a win- win situation in balancing government revenue needs with expanding digital inclusion.
Your Excellencies, Distinguished Delegates,
In conclusion, we must recognize the AfCFTA as Africa’s response to a global economic system that has long kept us at the periphery.
But its success demands bold action, strong political will and sustained commitment.
We must integrate AfCFTA priorities into national development plans, allocate budgets that reflect AfCFTA commitments, and harmonize policies that enable businesses to thrive.
And let me assure you – ECA is ever ready to support Member States with the data-driven insights, capacity- building and technical expertise needed to turn this vision into reality.
Once again, welcome.
And I thank you for your attention.