UN Report Highlights Africa's Commercial Potential
In its 2024 report, the United Nations Conference on Trade and Development (UNCTAD) emphasizes that Africa's commercial potential remains significant and could become a major pillar of global trade.
The report highlights the economic opportunities that can be created through trade, investment, and regional integration.
However, several challenges stand in the way of achieving this ambition, including volatility in global markets, significant debt, and inadequate infrastructure. Nevertheless, these challenges can be overcome, and if resolved, they will become attractive qualities, according to UNCTAD. It requires political will and boldness from African governments to shape a better future.
For instance, implementing the African Continental Free Trade Area (AfCFTA) will make Africa stronger, more resilient, and competitive. This market, which brings together 53 African countries, represents a market with an estimated turnover of $3.4 trillion. However, this requires building and modernizing infrastructure, as well as transportation, energy, and information and communication technology (ICT) networks. Customs services, tax relief, and affordable interest rates must all encourage the facilitation of movement and exchange, boosting economic, industrial, and regional dynamics.
The report emphasizes several priority sectors to boost the African economy, including reducing dependence on raw material exports. The dependence of almost half of African nations on raw materials for over 60% of their export revenue exposes them to price fluctuations. It is essential to diversify exports and promote trade within Africa to ensure revenue stability.
The UN also stresses the importance of investing in infrastructure, particularly in transportation, energy, and ICT. It is crucial to invest to reduce commercial costs, which are currently 50% higher than the global average, especially for landlocked countries.
