HELPING AFRICA MAINTAIN IT’S CONTINUOUS GROWTH TRAJECTORY
On Monday, Nov 15, 2021, the second Intra-Africa trade fair (IATF) kicked off in Durban, South Africa. The summit promoted by the Afrexim Bank, the African Union, the Africa Continental Free Trade Area Secretariat, and the Government of the Kwa Zulu Natal Province in South Africa is aimed to be the key event boosting trade in Africa.
In 2021, IATF’s theme will focus on the newly-launched African Continental Free Trade Area (AfCFTA) – a single market for goods and services across 55 countries, aimed at boosting trade and investment.
The seven-day event was opened at a ceremony attended by seven African leaders from Zimbabwe, Rwanda, Zambia, Malawi Nigeria, Tanzania, and the host South Africa.
The event, attended by over a thousand exhibitors and five thousand guests expects to close over $ 40 billion dollars in trade deals.
This particular event is a testimony to African resilience because firstly it has been successfuly hosted at short notice by South Africa after the previous host had to pull out due to COVID-related delays. Secondly, it was hosted in the same beautiful city of Durban which just a few months ago faced major unrest and rioting. Hosting this event in Durban just a few months later underlines Africa’s resilience and ability to rise up above its challenges.
Africa has faced many challenges, in the areas of the economy, security, and others but in the last twenty years, it has continued a march towards growth that is becoming too well defined to ignore.
In 2000 Africa’s economy was 3% of the USA economy; 51% or half of Canada’s economy and 1.2% of the world economy
In 2021, Africa is about 14% of the USA economy, twice larger than the Canadian economy and 3.6% of the global economy. the continent has maintained its overall growth trajectory through major global setbacks such as the economic crises of 2008 and more recently the COVID -19 pandemic lock downs in 2020.
If these growth trajectories are maintained, by 2042 Africa will be 50% of the US economy, 8 times larger than Canada, and 10% of the global economy.
It is VERY important for ALL Africans to note these past trends as well as the potential future projections, to be able to play a key role in their various sectors. The foreign partners and powers have also noted these trends and are taking key actions to position themselves in the continent that offers the world’s next growth opportunity.
As Africans take the right steps beginning with gaining knowledge and building skills and then taking the right actions at public and private levels, Africans will lead in the growth of their continent with global partners supporting as partners towards building a prosperous continent for its people and its partners. This is the preferred scenario.
Where the African people are not at their best, it is also possible to have a scenario where global partners are the biggest beneficiaries and Africans towing behind, a scenario should be avoided.
There is also a third possibility where Africa’s resources as in the past centuries, continue to feed the rest of the world with little to show on the continent. This too is a scenario that should be avoided.
Global partners should be conscious of the fact that an unstable Africa with over a billion people most of them young, will spill over into a tsunami of refugees, putting social pressures that could threaten other continents.
On the other hand, a stable, growing Africa will be of immense benefit to the entire world, contributing with its natural resources for product development, its growing and youthful population for growth markets, and most importantly its human resources to develop ideas, products, and services to benefit itself and the rest of the world.
There fore as the IATF holds in Durban in 2021, and as preparations are being made for the next event in 2023, all hands must be on deck to ensure success, and to help maintain the growth trajectory.
The organizers hope to see Intra Africa trade double from its current 16 percent by 2030. It is expected to hit 50% by 2040, which would place it close to par with other continents of the world. This potential growth in trade forms part of the tail winds that will drive Africa’s growth trajectory towards the vision of a developed Africa by 2063.
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