South African Deputy President Paul Mashatile says the success of the African Continental Free Trade Agreement (AfCFTA) depends on the investment in infrastructure in the areas of electricity generation, transportation, as well as freight and logistics distribution.
“This is because Africa’s trade integration has been hampered for decades by the ageing infrastructure and too many regulations which require reforms,” Mashatile said.
Addressing the All-Africa Business Leaders Awards on Friday, the Deputy President stressed that investing in infrastructure is crucial to unlocking the potential for Africa to experience growth at faster rates but more importantly, to ensure inclusive diversification.
“In this regard, we welcome the launch by the African Export-Import Bank (Afreximbank) of the Africa Trade Gateway (ATG), a suite of five digital platforms providing critical services to support and promote African trade and the implementation of the African Continental Free Trade Agreement (AfCFTA).
“We must surely invest in infrastructure because it is a critical driver of success across Africa. It makes a substantial contribution to human development and poverty alleviation,” he said.
AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight Regional Economic Communities (RECs). The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined gross domestic product (GDP) of approximately $3.4 trillion.
The Deputy President expressed confidence that “Africa is on the right path of development” and edging closer towards a single African market.
He said Africa is brimming with opportunities and the continent has what it takes to be great.
“We must dig into our continent’s riches and turn difficulties into possibilities. Africa has a lot of natural resources, which is good news for building value chains. Agriculture and the extraction industries are important parts of value chains at the national, regional and worldwide levels.
“Africa has 60% world’s uncultivated arable land. It makes up 13% of the world’s oil. At least half of the world’s diamond riches are also in Africa. Cobalt, nickel, lithium, manganese, uranium and rare earth metals, which are important for clean energy and the future, are mostly found in Africa,” Mashatile underscored.
