The implementation of the CFTA will reduce trade volatility – Economist

Company News on Tuesday, April 9, 2019

Source: ghananewsagency.org

2019-04-09

Albert Zeufack, chief economist of the World Bank for Africa, urged African governments to ratify and implement the Continental Free Trade Agreement (CACE) to reduce the risk of human trafficking. instability of trade and stimulate African economic growth.

He urged African countries to invest in digital infrastructure to strengthen access to broadband connectivity, adding that an effective implementation of the free trade policy would strengthen the chain of regional value for increased development.

Zeufack told a videoconference Monday at the launch of this year's Pulse de l'Africain report, a semi-annual badysis of the issues shaping Africa's economic future.

The report showed that growth in sub-Saharan Africa was reduced to 2.3 percent in 2018, down from 2.5 percent in 2017.

He attributed weak growth to domestic macroeconomic instability, including: poorly managed debt, inflation and deficits; political and regulatory uncertainty; and the fragility that had visible negative impacts on some African economies.

The report revealed that the fragility of some countries cost sub-Saharan Africa more than half a point of growth a year, an increase of 2.6 points over five years.

"The factors of fragility have evolved over time, as have the solutions," said Cesar Calderon, senior economist and lead author of the report.

"Countries have a real opportunity to move from fragility to opportunities by cooperating across borders to fight instability, violence and climate change."

Zeufack said the digital transformation could increase growth by almost two percentage points a year and reduce poverty by as much as one percentage point per year in sub-Saharan Africa alone, describing the phenomenon as a contributing factor. change for Africa.

The report shows that Ghana's growth reached 6.2 percent in 2018, compared with 8.1 percent in 2017, and the World Bank predicts growth of 7.6 percent for Ghana in 2019, compared to 7.2 percent for Ghana.

According to the report, Nigeria's growth reached 1.9 percent in 2018, compared to 0.8 percent in 2017, reflecting a slight recovery in the non-oil economy.

South Africa, however, emerged from recession in the third quarter of 2018, but growth was moderate at 0.8% year-on-year, as political uncertainty dampened investment.

Angola's third economy, Angola, has remained in recession and its growth has declined sharply, with oil production remaining low.

Zeufack said growth had picked up in some resource-intensive countries, such as the Democratic Republic of Congo and Niger, while mining output and commodity prices had boosted activity at the same time. the resumption of agricultural production and public investment in infrastructure.

"In countries like Liberia and Zambia, growth has been moderate, with high inflation and high debt levels continuing to weigh on investor sentiment. In the Central African Economic and Monetary Community, a fragile recovery has continued as reform efforts to reduce fiscal and external imbalances have slowed down in some countries.

He said resource-intensive economies such as Kenya, Rwanda, Uganda and several countries of the West African Economic and Monetary Union, including Benin and Côte d'Ivoire , recorded strong economic growth in 2018.

The CFTA created a single continental market for goods and services, with free movement of businessmen and investment, while opening the way for an acceleration of the establishment of the Continental Customs Union.