The controversy trailing the African Continental Free Trade Area (AfCFTA) agreement is yet to be resolved as some countries, including Nigeria, are still rejecting the agreement, citing imbalance in the proposed agreement.
But the African Union (AU), United Nations Industrial Development Organisation (UNIDO) and other development agencies are appealing for its implementation.
Protagonists of the trade agreement explained the advantages of supporting the pact. They said job creation on the continent was not keeping pace with the growing workforce leaving many unemployed, and economy less inclusive.
The AU, UNIDO, and some development agencies are pushing for the implementation of the agreement.
According to the multilateral agencies and high-level representatives of governments, the continent’s economies need to undertake a systematic structural transformation from resource-based economies to more diversified economies, specifically by increasing the shares of manufacturing and agro-related industry in national investment, output, and trade.
Indeed, the agencies noted that the AfCFTA provides a chance for African countries to move away from resource-dependence and transform into dynamically diversified economies and competitive industrial production locations.
In the outcome of the Third Industrial Development Decade for Africa (IDDA III), made available to reporters, UNIDO Director-General, LI Yong, said if the full benefits of the AfCFTA were to be fully realised, industrialisation should be the central focus.
He predicted that “the successful implementation of the AfCFTA will lead to an increase in demand for goods manufactured by small and medium-sized enterprises.”
Yong explained that manufacturing has always been one of the most important drivers of economic development and structural change, especially in developing countries as a result of its multiplier effect on other sectors of the economy.
“Manufacturing is an engine of growth that enhances higher levels of productivity and greater technical change, thus creating more jobs with higher wages for both women and men,” he said.
Also, the AU Commissioner for Trade and Industry, Ambassador Albert M. Muchanga, emphasised that “the African Continental Free Trade Area and IDDAIII are complementary, and the alignment will offer win-win outcomes to Africa and the international community.”
African Development Bank Vice President, Pierre Guislain, said: “The private sector has a critical role to play in driving Africa’s industrialisation and integration.”