Emerging technologies remain essential to promote economic growth

Experts highlighted the factors that promote economic growth

Emerging technologies remain essential to promote economic growth, transformation and expansion of digital trade in Africa, according to a report of the first session of the Committee on Private Sector Development, Regional Integration, Trade, Infrastructure, industry and technology.

The report was presented at a session on Private Sector Development and the Digital Economy in Support of Regional Integration in Africa at the 39th ECA Committee of Experts of the Conference of African Ministers of Finance , planning and economic development in Addis Ababa, under the control of Ghana. Press Agency.

The report says that over the years there has been an increased transformation of digital technology in Africa, which is home to 11.5% of the world’s total internet users.

Francis Ikome, Head of the Regional Integration Section in the Regional Integration and Trade Division at ECA, who presented the report, said: “There is increased African participation in technology at the supporting the transformation of the continent and the achievement of the Sustainable Development Goals. ”

“But there is still a need to harness emerging technologies to help implement AfCFTA in Regional Economic Communications (RECs).”

The ECA estimates an increase in intra-African exports of industrial products of 15 to 25% in 2040 due to the AfCFTA.

All African countries except Eritrea signed the AfCFTA and 37 had ratified it by January 2021.

“We urge other countries to speed up the process. ECA will assist in the development of national strategies on the AfCFTA in order to facilitate the ratification processes and phases II and III of the negotiations, ”said Mr. Ikome.

The report indicated that progress had been made in accelerating the continent’s regional integration agenda. But the results have been mixed with a slow pace of implementation in some areas such as the free movement of people. Regional integration continues to face challenges, including financial, human capacity and security issues.

It was observed during the meeting that African limited liability companies (LLCs) need increased support in the implementation of the Vienna Program of Action for Landlocked Developing Countries (VPoA) to leverage fully part of the AfCFTA.

Mr. Ikome said that ECA will continue to support Africa’s regional integration efforts through the Africa Regional Integration Assessment (ARIA) report, the Africa Regional Integration Index ( ARII) and negotiations on AfCFTA processes.

According to the report, infrastructure remains one of the main drivers of economic development in Africa. However, the financing of infrastructure projects remained a major challenge for Member States, in particular in the field of electricity and energy.

“The development of regulatory frameworks for public-private partnerships (PPP) to finance infrastructure development is essential,” noted Mr. Ikome.

“Member States must use other sources to finance infrastructure development, including private equity funds.”

He said the inclusion of a digital economy for women’s empowerment in support of regional integration and the AfCFTA was crucial, as were huge investments in science, technology and innovations.

Mr Ikome said Member States, RECs and the private sector should take advantage of the Fourth Industrial Revolution and develop ICT as a catalyst for the digital economy.

The report recommended that ECA and other partners support more member states in developing national strategies to accelerate the implementation of the AfCFTA; improve monitoring of the regional integration program; deepen analytical work on the impact and benefits of the AfCFTA; support research focused on the main drivers of science and innovation; assist countries in the negotiations of phases II and III of the AfCFTA.

Member states were urged to speed up the ratification of the AfCFTA and free movement of persons protocols, which were essential to promote regional integration.

The report recommended that RECs integrate the Action Plan for Boosting Intra-African Trade (BIAT) into their programs with ECA and its partners, urging them to strengthen their support for capacity building of RECs and Member States. to implement their industrialization policies.