HE President Cyril Ramaphosa
In 2018 the first Intra-African Trade Fair opened in Egypt, in the ancient city of Cairo. Today (November 15, 2021), it is opening in the southernmost tip of Africa.
In due course, we hope the IATF will be held in all parts of the continent. This fair belongs to us all.
This year’s Intra-African Trade Fair is about building bridges.
It brings together governments, buyers, investors, entrepreneurs and manufacturers from more than 55 countries to give life to the African Continental Free Trade Area.
The countries of Africa are open for business.
Since ancient times, trade has been the engine that connected communities both near and far.
From the ancient centres of learning like Alexandria and Timbuktu, to the northern civilisations in Egypt and Carthage, the western Kingdoms of Ghana, Mali, and Songhai, the trans-Saharan trade routes, the eastern trading centres of Zanzibar, Mombasa and Mogadishu, to the ancient southern civilisations of Great Zimbabwe and Mapungubwe, for many centuries Africans traded the goods that they produced.
Throughout history, Africa has had a network of trade routes that facilitated the flow of goods such as beads, carvings, ivory, gold, gum, metal works, salt, textiles and metals.
These trade routes enabled African traders to seek out markets beyond the continent.
Colonialism deeply damaged the indigenous development of African trade and caused great harm to our societies.
At first, Europeans traded in African lives, carrying millions of slaves across the Atlantic to produce the wealth of their new-found colonies.
Then, with the realisation of Africa’s vast raw materials, colonial powers turned to the extraction of Africa’s minerals and agricultural products.
Much of the economic storyline of colonialism persists to this day. Now Africa is taking concrete steps to write its own economic success story. It is opening up new fields of opportunity.
One such opportunity is in Africa’s rapid adoption of locally developed fintech, of which M-PESA is the most well-known.
It is an example of financial and technological innovation in which Africa leads the world.
A recent report from the Brookings Institution notes that Africa “is already the largest adopter of mobile money transfer systems, comprising nearly half of the globe’s registered mobile money customers, approximately 70 percent of global mobile money transactions, and two-thirds of the transaction volume by value”.
It is by harnessing all our capabilities, both existing and emerging, that we will accelerate Africa’s economic growth and integrated development.
It is our expectation that this Intra-African Trade Fair will further cement its position as Africa’s premier trade platform, where African manufacturers can promote and sell more “Made in Africa” goods to one another.
This is critical if we are to change the distorted trade relationship that exists between African countries and the rest of the world.
We can no longer have a situation where Africa exports raw materials and imports finished goods made with those materials.
We can longer have a situation where the resources of Africa provide employment and add value in other economies, while so many of our people live in poverty and conditions of under-development.
By promoting trade between African countries we are strengthening the continent’s industrial base and ensuring that we produce goods for ourselves and each other.
Two key developments of global significance can serve as a stimulus for Africa to act in unison.
Firstly, the outbreak of the COVID-19 pandemic in the first quarter of 2020 exposed the frailty of African economies.
More importantly, it sent a powerful message to our continent about the dangers of over-reliance on external sources to meet its growing demand for food, medicines and other essential supplies.
It clearly demonstrated that Africa needs to produce its own food and medicines, to strengthen continental supply chains, and to invest in infrastructure and capacitate African institutions.
To illustrate the extent of the challenge, the United Nations Economic Commission for Africa estimates that Africa imports about 94 percent of its pharmaceutical and medicinal needs from outside the continent at an annual cost of US$16 billion.
Secondly, the African Continental Free Trade Area has the potential to accelerate economic growth across the continent and create opportunities for entrepreneurs, small and medium enterprises as well as large corporations to flourish.
The AfCFTA will provide new export opportunities for “Made in Africa” products and enable member countries to trade with each other without tariffs or other hindrances.
All of this will help the continent to absorb the 10 to 12 million African youth looking to enter the job market annually.
The AfCFTA should therefore be underpinned by strong and ambitious rules of origin, requiring a very high level of value-add here on our continent.
We need, as Africans, to resist the temptation to simply become transhipment centres, adding only limited industrial value in Africa.
The AfCFTA will unlock more value and give effect to the dream of African development if it promotes complementary trade between countries.