United Nations urges African nations to harness AfCFTA amid global tensions

The AfCFTA is expected to raise Africa’s GDP by 1.2% and welfare by 0.9% in 2045

- SIPHELELE DLUDLA

THE United Nations (UN) Economic Commission for Africa (ECA) has encouraged African governments to capitalise on the prevailing global economic tensions and fragmentation by fully implementing the African Continental Free Trade Area (AfCFTA).

The AfCFTA aims to create a single market for goods, services, facilitated by movement of persons in order to deepen the economic integration of the African continent, and thus enhance the competitiveness of the economies of State Parties within the continent and the global market.

The AfCFTA is expected to raise Africa's GDP by 1.2% and welfare by 0.9% in 2045.

The ECA's Economic Report on Africa 2025, released on Monday, examined the AfCFTA and its transformative opportunity to accelerate trade-led integration and drive inclusive, sustainable development.

The report showed that the successful AfCFTA implementation could boost Africa’s trade, inclusive growth, and sustainable development.

However, it said the full AfCFTA implementation requires strategic investment, well-designed policies, and synchronized reforms at national, subregional, and continental levels.

For one, Africa is disproportionately affected by climate change, with annual economic losses at $7 to $15 billion, and projected to rise to $50bn a year by 2030.

The ERA said the AfCFTA can support climate-resilient development through green industrialization and renewable energy investments.