Addis Ababa, March 16, 2025 (ABN)
Africa must leverage its unique strengths such as a young, growing population and vast natural resources to overcome global challenges and stimulate economic growth, said Hanan Morsy, Deputy Executive Secretary (Programmer) and Chief Economist of the ECA, at the opening session of CoM2025.
While Africa faces external challenges like rising trade restrictions and global supply chain disruptions, it also contends with internal issues, including sluggish growth and structural obstacles. However, the continent’s strengths offer a path to leapfrog traditional development challenges by adopting innovative technologies, positioning Africa well for sustainable and inclusive development.
Currently, intra-African trade represents about 15.8% of total trade, far below the levels seen in other regions. Yet, there is reason for optimism. Trade within the continent is increasingly positive, with manufactured exports making up 46% of intra-African trade compared to just 24% of value-added goods in Africa’s trade with the rest of the world (2019-2023). In contrast, global trade remains dominated by commodities, with just two product segments fuel and metals accounting for more than 52% of Africa’s total trade.
“The profile of intra-African trade shows significant opportunities to leverage trade within the continent,” Morsy said. “By advancing up the value chain, we can create jobs with higher wages and foster better-quality growth.”
Greater economic integration and industrialization could produce impressive outcomes: a 45% increase in intra-African trade, a 1.2% rise in GDP, a 7.3% increase in exports, and a 6.9% boost in imports. Moreover, eliminating restrictive regulations could lead to a 21.5% increase in intra-African digital trade.
Morsy also highlighted the importance of fostering national African development through the growth of pan-African payment systems, which could save $5 billion in trade costs and address foreign exchange issues by enabling trade in local currencies. She emphasized the need for well-capitalized African development finance institutions to support trade.
During the question-and-answer session, delegates called for the removal of non-tariff barriers, the eradication of illegal trade practices, and stronger measures to combat dumping. The lack of technology mainstreaming was also raised, alongside questions about strengthening capital markets.
