Africa is one of the most promising growth areas, with huge natural and human capital resources that have yet to be exploited.
The continent is diverse and rich in potential, with rising markets in natural and mineral resources, construction, infrastructure, forestry, agriculture, tourism, and culture.
The continent’s human capital and digital technology potential, on the other hand, provide the key to unleashing a new age of intra-African trade and growth.
Countries across the continent have been gradually improving intra-African trade and commerce since the formation of the Organization of African Unity in 1963 – now the African Union – with a vision for an Africa that is united, free, and in control of its own destiny – recognizing the role cross-border business and continental cooperation will play in driving sustainable socioeconomic growth in Africa.
In January 2021, the African Continental Free Trade Agreement (AfCFTA) went into effect, with the goal of creating the world’s largest free trade area by integrating the roughly 1.3 billion people living in 54 African countries.
The AfCFTA was a watershed moment for the continent, ushering in a new era of streamlined trade for the continent.
Despite its implementation, the AfCFTA’s adoption and leverage have been glacial, according to an article in the Economist of London, and “in practice, no commerce has proceeded under its rules due to continuous political squabbling.”
“Africa’s leaders run the risk of squandering the promise of greater trade freedom.”
“While the Economist was right about the facts set out in their article, the conclusions are wrong because the facts in the article are symptoms of a major problem the article did not explore,”
Prof. Benedict Okechukwu Oramah, President and Chairman of Afreximbank, said during his opening remarks at the 29th Annual Meetings of Afreximbank. Without facing the problem, we won’t be able to reverse the symptoms.”
Prof. Oramah believes that rather than just criticizing the current state of affairs, it is vital to investigate the core causes of the problem while promoting the acceptance and capitalization of growth-oriented accords like the AfCFTA.
To increase intra-African trade and commerce, the continent should focus on its own resources, harnessing Africa’s human capital and technology capabilities to drive investment and development.
“While the problem has been recognized for decades, it is only now that Africa can claim to have a mix of characteristics that can fix it.” Visionary and devoted leadership, the youth, and digital technology are among them.
Our government have taken the brave step of granting us the AfCFTA. Our Youth currently determines a great deal. Prof. Oramah said, “Realizing the AfCFTA Potential in the Post-COVID-19 Era: Leveraging the Power of the Youth” was the theme of this year’s Annual Meeting at Afreximbank.
Prof. Oramah made a strong case for the youth’s involvement in Africa’s development future, highlighting that other countries’ industrial revolutions were largely ascribed to a young and capable population, which is indicative of Africa’s workforce now.
“It is our view that the youth will be the catalytic force in the accomplishment of the continental agenda,”
Prof. Oramah says. This asset in our possession is possibly the most valuable resource, perhaps more valuable than all the oil and mineral resources combined. African youth are beginning to make substantial contributions to the continent’s economic change.”
“Sprouting across a fragmented continent, Africa’s youth are ready to make huge achievements in a single continental market, and they might easily become the driving force behind Africa’s integration and intra-African trade.”
Policies that safeguard their intellectual property, reduce the cost of doing business, and promote access to the single African market would help them realize their full potential as entrepreneurs.
Prof. Oramah said, “A robust single market will open up a new panorama of opportunity, broadening the choices accessible to youngsters and empowering them to fulfill their full potential.”
Trade will be important for maintaining continental, rather than isolated, socioeconomic growth as Africa’s diversified markets see increased investment and development in the post-COVID-19 era.
The importance of the youth in this development is apparent, and by investing in the development of Africa’s human capital, the continent will be able to reap the benefits of a strong and growth-oriented economy.
“The African Energy Chamber (AEC) is an advocate not only for the development of the continent’s natural resources, but also for the development of its human capital resources.” Africa’s population is among the world’s youngest, fastest-growing, and probably most determined.
It is past time for us to put youth at the forefront of the continent’s development; only then will we be able to see unprecedented progress.
“Discussions will center on the youth, the role of women in Africa’s energy future, and methods for improving intra-African commerce and business” during the continent’s biggest energy event, African Energy Week 2022, according to NJ Ayuk, Executive Chairman of the AEC.