Accra, Ghana – The Africa Continental Free Trade Area (AfCFTA) has revealed that fostering internal trade within the continent could yield more than $70 billion, surpassing the amount received as development assistance. This announcement was made by Silver Ojakol, Chief of Staff of the AfCFTA Secretariat, during the 2023 Regional Integration Issues Forum (RIIF) held in Accra, Ghana.
The RIIF serves as a platform for stakeholders involved in regional integration and continental trade initiatives to enhance awareness and collaboration. The primary focus of the 2023 RIIF was to increase awareness of the AfCFTA’s advantages for Small and Medium Enterprises (SMEs) and empower them to participate actively in intra-African trade.
In a statement released in Abuja, the AfCFTA emphasized that substantial earnings could be achieved if SMEs collaborate and adopt the principles of AfCFTA to overcome trade barriers. Ojakol, speaking on behalf of AfCFTA Secretary General Wamkele Mene, stressed that the AfCFTA was designed to benefit everyday entrepreneurs who face challenges when trading across African borders, rather than large corporations.
He stated, “If African countries could increase their trade with each other by just one percentage point, we would generate $70 billion, surpassing the $58 billion in development assistance received from donors.”
Additionally, Prof Lehlohonolo Tlou, Executive Director of the Centre for Regional Integration in Africa, emphasized the importance of equipping SMEs with the necessary skills and knowledge to break down trade barriers within Africa and produce what the continent needs. Tlou highlighted that despite 60 years since the establishment of the Organization of African Unity and the African Union, intra-African trade remains low at only 16 percent.
The 2023 RIIF conference was convened to raise awareness of the benefits of AfCFTA, enhance SMEs’ capacity to access regional markets, and encourage them to establish regional value chains through partnerships.