Opinion
Can trade make a difference in Africa?
By Carlos Lopes
It is unquestionable that Africa is on a major ascendance path, a trend shared by the rest of the rising ‘South’. Despite the global economic downturn of recent years, the continent has experienced unprecedented growth. While erratic at times, there has been progress in the reduction of poverty, and the improved quality of life has brought economic opportunities for many Africans.
Trade has significant potential to help achieve sustainable development and has increasingly played an important role in the strong economic performance of African economies during the past decade. Indeed, trade performance has shown great resilience even in the face of the ongoing economic crisis.
Still, Africa needs to look at its continuous economic growth in light of the three pillars of sustainable development – economic, environmental and social – and assess whether its ‘development meets the needs of the present without compromising the ability of future generations to meet their own needs’, as set out by the Brundtland Commission in its report Our Common Future.
Last year’s United Nations Conference on Sustainable Development, Rio+20, unleashed the momentum for the facilitation of a green economy in Africa, and it remains critical that the continent direct its transformational agenda onto a sustainable development path.
How to enhance Africa’s competitiveness?
Intra-regional formal trade in Africa has historically hovered around 10 – 12 percent, although this could be much higher. These figures do not take into account statistical deficiencies and informal trade.
Still, trade within regional economic communities is growing faster than African exports to the rest of Africa, and to the rest of the world. The Common Market for Eastern and Southern Africa (COMESA) alone has increased its intra-African trade almost fivefold since it launched its free-trade agreement in 2000. Southern African Development Community trade grew more than threefold and East African Community trade grew more than two-fold.
