The Secretary-General of the AfCFTA calls for full commitment to an enterprising Africa. In this regard, Wamkele Mene believes that the AfCFTA will accelerate the pace.
"The FIAD has become a valuable platform for African perspectives, facilitating open discussions on the continent's challenges and opportunities," says the Secretary-General of the African Continental Free Trade Area (AfCFTA) on the sidelines of the 7th edition of the FIAD organized by the Africa Development Club of the Attijariwafa bank group, in partnership with the pan-African fund Al Mada. Wamkele Mene affirms that this "forum not only facilitates business opportunities between African companies and international partners but also strengthens South-South cooperation and prepares African nations to face the challenges of the 21st century." This year, the theme "Here, we invest" particularly resonates with the continent's aspirations to attract investments that stimulate economic growth and sustainable development, especially with the effective implementation of the AfCFTA since January 2021. For Wamkele Mene, investment is crucial to develop the necessary infrastructure and logistics for smooth cross-border trade, in line with the AfCFTA market integration goal. He also notes that "investment in the manufacturing and industrial sectors is essential to build regional value chains, enabling the production of goods that meet continental and international standards, and promoting intra-African trade." Recognizing that African countries need investments to transform their value chains, industrialize, and promote economic and social inclusion, he emphasizes the importance of strengthening productivity and economic integration to improve resilience to economic shocks.
Boosting industrial development
In 2019, participation in regional value chains in Africa represented only 2.7%, well below other regions like Asia where it reaches 47%. For Wamkele Mene, the AfCFTA aims to reverse this trend by promoting industrial development, economic diversification, and improving regional value chains. In this regard, he highlights the AfCFTA Private Sector Engagement Strategy, focusing on key sectors such as agriculture, agro-industry, automotive, pharmaceuticals, and transport and logistics. These sectors are seen as potential drivers for intra-African trade and the transformation of raw materials such as cocoa beans into finished products on the continent. Asked by the Observateur du Maroc et d'Afrique, Pouvoirs d'Afrique, and Powers of Africa about the progress of the AfCFTA implementation, Wamkele Mene explains that the process is advancing rapidly. "Forty-seven countries have ratified the agreement, and all negotiations on the various protocols are completed. We are now in the implementation phase," he says. He also highlights that trade is developing across various sectors and industries. "Although trade volumes are not yet as high as desired, this is just the beginning. We are pleased with the progress made so far, as integrating a market with such diverse economies is a considerable challenge," he assures, showing his great confidence in the future.
Challenges to overcome
Wamkele Mene affirms that the AfCFTA plays a crucial role in creating a favorable environment for investors in Africa through the Investment Protection Protocol. He also highlights that the AfCFTA mobilizes the continent's various investment agencies to adopt a common vision of investment protection in Africa. Regarding the challenges to be overcome, he insists on the need to develop infrastructure and addresses the issue of the high cost of trade financing, which is particularly concerning for entrepreneurs and SMEs. According to him, "access to new markets is also expensive" and "transport and logistics also represent major challenges." However, W. Mene remains convinced that "these challenges are also opportunities to seize."
Maximizing South-South cooperation
To succeed, the Secretary-General of the AfCFTA insists on the importance of fostering confidence in Africa to promote it as an enterprising continent. This approach aims to support local businesses, invest in infrastructure, and encourage young entrepreneurs. "The AfCFTA facilitates this vision by removing trade barriers, strengthening cooperation to develop interconnected trade corridors, and promoting industrialization and the use of African resources," he explains. W. Mene also insists on the need to maximize South-South cooperation. He urges all stakeholders to fully commit to realizing this vision, highlighting the responsibility of Africans to advance the continent towards prosperity, with the support of development partners worldwide.
Red carpet for the AfCFTA at FIAD 2024
In opening the 2024 edition of the FIAD, the CEO of the Attijariwafa bank group particularly highlighted the good prospects that the AfCFTA opens for intra-African trade. "In the coming years, we will witness the liberation of more than 90% of customs duties," he announced. And Mohamed El Kettani concluded: "Africa is indeed at a major turning point in its history." In this context, a central pavilion was reserved in the large exhibition space of the Forum for the AfCFTA, which participates in the event with a strong delegation led by its Secretary-General, Wamkele Mene. This space was highly sought after. Investors, entrepreneurs, and startups came in large numbers. The strong delegation accompanying Mene was highly solicited. The valuable information shared on this occasion illuminated the path for many interested parties.
