[ad_1]
AfDB Chief Akinwumi Adesina at the ADB Annual Meeting in Malabo, Equatorial Guinea
<! –
->
<! –
->
The President of the African Development Bank (AfDB) is pbadionately calling on African governments to do more to eradicate all trade barriers in the region.
Dr. Akinwumi Adesina believes that this would be one of the surest ways to help the successful implementation of the Continental Free Trade Agreement.
Dr. Asdesina made the remarks during a high-level presidential dialogue on strengthening Africa's economic integration, on the sidelines of the African Development Bank's meetings in Malabo, Equatorial Guinea.
Research has shown that countries with open borders have benefited greatly from improved foreign direct investment, added: "To integrate Africa, we must break down all obstacles." The free movement of persons, and in particular the mobility of the workforce, are essential for the promotion of investments. "
The head of the African Development Bank stressed that African governments should also work towards the establishment of non-tariff barriers.
Free movement of persons and goods
Recent research by the African Union, the African Union Commission and the regional economic communities on the visa liberalization index in Africa has shown that the region is making progress in the free market. movement of people.
For example, it was shown that in 2018, Africans did not need a visa to enter 25% of the countries in the region; they can get a visa on arrival in only 24% of the countries, but they still need a visa to enter 51% of the countries.
Dr. Adesina said that there is still a lot of work to be done to sustain this progress.
Financing of the Continental Free Trade Agreement
According to the African Development Bank, it has so far invested more than $ 1 billion * to support trade finance, which has also supported 111 transactions in 43 countries.
It has also invested an additional $ 1 billion in AfriExim Bank, including $ 650 million for trade finance lines of credit and $ 350 million for commercial insurance. The president of the African Development Bank also noted that all these facilities should help solve the financing problem posed by the Free Trade Agreement for the continent.
Why are Afdb and AU pushing this free trade agreement?
The African Free Trade Area that was signed by 22 countries in April this year according to the African Union.
It should make Africa the largest free trade area in the world, with a combined GDP of more than $ 3.3 trillion.
The head of the Afdb said that "this is what we need to redress the economic situation of different African countries. The removal of non-tariff barriers alone will lead to an increase in trade of at least 53% or even double trade ".
Dr. Adesina pointed out that to support this continental free trade agreement, financial markets in Africa must also integrate. "I would therefore try to involve some of the operators in these markets to see how we can speed up the process. "
What is African free trade?
The Continental Free Trade Agreement is an agreement between 49 African Union Member States whose main objective is to create a single market, followed by free movement and a currency unique.
On March 21, 2018, it was signed in Kigali (Rwanda). The African Union believes that it would eliminate high tariffs, create jobs for a rapidly growing young workforce and harmonize the work of existing regional economic communities.
Speakers in the presidential dialogue
The presidential meeting, which began immediately after the opening of the official meetings, saw the President of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo, King Letsie III of Lesotho; President Félix Antoine Tshisekedi of the Democratic Republic of Congo; and Ambrose Mandvulo Dlamini, Prime Minister of eSwatini, led the debate on ways to strengthen Africa's economic integration.
The President of Equatorial Guinea stated that, even though he was committed to free movement, the recent upsurge in terrorist activity poses a major risk to this free movement of people, which is essential for the free movement of people. Continental free trade agreement.
The President of the Democratic Republic of Congo, Felix Antoine Tshisekedi, also pledged his government's commitment to implement the continental free trade agreement.
[ad_2]
Source link
