The Ghana International Trade and Conference (GITFiC) has says that the African Continental Free Trade Area (AfCFTA) will have an enormous economic impact on the Africa continent.
In its February report on “Africa’s Regional Integration under the AFCFTA: The Economic Impact” GITFiC disclosed that regional integration has the potential to drive more strong and fair economic growth, as well as reduce poverty and unemployment in Africa.
However, experience has shown that these benefits can only be realized via the cautious utilization of chances for deeper regional integration.
“Giving African manufacturers access to regional markets and connecting them to more complex regional value chains would boost their competitiveness and capability for advancement into more competitive global niches. When seen in this light, regional integration is critical to increasing productivity and creating long-term gains in living standards.
“Regional integration offers African countries the opportunity to discuss a paramount limitation to export competitiveness placed by the small size of their economic systems and geography/transport costs, while also acting as a powerful tool for promoting product and export diversity, thereby increasing their countries’ prospects for growth and development,” the report reads.
The Report also had it that “Regional integration can also enable economies of scale to emerge. Regional integration also encourages the spread of technical innovation and allows nations to compete on the global market with more sophisticated economies. Furthermore, it generates incentives for governments to pursue less distortive domestic policies and more disciplined macroeconomic management.
“Furthermore, it can assist regions in achieving economies of scale, as well as increasing their supply capacity and competitiveness. Africa will be able to complete critical missing links, interconnect the continent, and implement reforms to allow cross-border commerce, investments, financial flows, and migration through targeted regional infrastructure.
“Increased and deeper integration will improve food security by permitting greater intra African commerce in food items, as well as encouraging the growth of international production chains and value addition in Africa.”
Source: Ghana/Starrfm.com.gh/103.5FM
