Trade and Finance Conference Emphasizes Need to Boost Intra-Africa Trade

Addis  Ababa April  22/04/2019 Africa International Conference on Trade and Finance has emphasized the need to boost intra-Africa trade which remains extremely low and with lesser private sector competitiveness.

Africa International Conference on Trade and Finance has emphasized the need to boost intra-Africa trade which remains extremely low and with lesser private sector competitiveness.

Opening the two-day conference today, Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) President Mesenbet Shenkute said Africa is amid several challenges that need to be addressed by coordinated efforts of the public and the private sector.

“We believe that it is high time to change this scenario for we Africans have got a lot to share by trading between one another and boost intra-Africa trade which has remained extremely low,” she added.

Mesenbet stated that African countries need to realize the potential to harvest the benefits of trading within the continent.

The African Continental Free Trade Area is aimed at realizing intra-Africa trade as the result of the political commitment of many African leaders.

The president noted that political leaders have contributed their share by establishing frameworks and institutions. She urged the private sector to respond accordingly.

Finance State Minister, Teshome Tafesse said Ethiopia has become one of the fastest growing economies in the world as a result of the series of rolling development plans that were effectively implemented in the past decades.

The private sector is expected to play a key role in Ethiopia’s journey to become a middle income country in the next decade, he said, adding that “firms are however facing financial constraints.”

Furthermore, he pointed out that more space needs to be created for private initiatives as the public sector alone cannot drive all processes.

“It has now become obvious that the government is continually showing its commitment to promote the private sector and market competition by further democratization, liberalization, de-regulation and privatization initiatives,” the state minister noted.

AU Trade Commissioner, Albert Muchanga said on his part only three countries out of the expected 22 countries; namely, Sierra Leone, Zimbabwe and Gambia, remain to ratify the agreement to go into effect.

Some African countries have threats of external debt distrust, he said, and stressed that “we need to ensure that this will not be translated into a complex crisis.”

According to the Commissioner, “Africa is historically short of trade finance. We challenge financial institutions across Africa to come up with innovative instruments to close the trade financing gap for infrastructure development.”