Sub-Saharan Africa is seeing a “modest pickup in economic growth,” from a rise of 2.8 percent in 2017 to 3.4 percent in 2018, according to the International Monetary Fund (IMF).
The IMF African Department reported on Friday the growth is helped by external conditions, including stronger global growth, higher commodity prices and favorable financing conditions.
IMF’s African Department Director Abebe Aemro Selassie pointed to growing trade within Africa as a positive force, with intra-Africa trade growing from below 10 percent to almost 20 percent of the region’s trade.
“Much of what Africa trades with each other turns to be more processed, more manufacturing type goods exactly the kind of more diversified exports that our countries are seeking.
So we think that the CFDA when fully implemented coupled with reforms to non-tariff barriers, facilitating infrastructure to allow goods move to each other should facilitate and help allow connecting markets to deepen and expand the market in which African firms can trade so we strongly welcome it,” Mr Selassie said.
In terms of what is needed to support the young people in the region, he said, “really its robust economies that is able to create the hundreds of thousands of jobs that each country needs every year, so I think with a robust private sector growth that we will be able to create jobs and opportunities for the young.”
Continental Free Trade Agreement (CFTA)
The leaders of 44 African countries signed a deal to create one of the world’s largest free trade blocs.
The agreement was signed at a summit in the Rwandan capital, Kigali.
It is hoped the deal will come into force within six months, and increase prosperity for 1.2 billion Africans.
But 10 countries, including Nigeria, have refused to sign the deal, and it will need to be ratified by all the signatories’ national parliaments before the bloc becomes a reality.
The African Continental Free Trade Area (CFTA) would remove barriers to trade, like tariffs and import quotas, allowing the free flow of goods and services between its members.
n theory that should boost commerce, growth and employment.
Source:Mjoyonline