Aid for Trade: African Perspectives - Presentation Transcript
Aid for Trade: African Perspectives by Dr. Cornelius T. Mwalwanda Principal Advisor and head United Nations Economic Commission for Africa (ECA) Geneva Advisory Services
Outline of Presentation
Background
Aid for Trade Africa Regional Review
Priorities from regional breakout sessions.
Cross-cutting issues with respect to Africa
Roadmap for Africa in Aid for Trade
Background
Africa as a region remains at the margins of the world economy and global trade
Africa’s share of world output is still marginal and it’s share of world trade still below 2%
Millions of Africans still live below the poverty line (at less than $1.00 per day)
Achieving the Millennium Development Goals (MDGs) could up lift millions from poverty
Background (Continued)
Despite recent impressive growth rates, the continent still lags behind other regions
The need to integrate African economies into the global economy and trading system becomes an imperative
Raising Africa’s competitiveness and reducing transactions costs are essential for integration in the global economy
Africa can benefit from globalization and the opportunities generated
Aid for Trade an be an important catalyst
Aid for trade Africa Regional Review
The Dar review was organised by UNECA, ADB, WTO and Government of Tanzania.
Broad participation.
34 African Ministers of Finance and Trade.
Key donors and international agencies.
Private sector.
More than 400 participants.
Key issues Discussed
Integration to global economy a central objective.
Will generate necessary resources for social priorities.
Small size of national and even sub-regional markets make international trade indispensable.
“ Internal barriers” such as poor infrastructure, inefficient customs, unreliable supply chains; high energy costs impede competitiveness at the factory floor.
Key Issues Discussed (continued)
Africa needs access to modern “infrastructure” for transport; customs; and standards testing labs.
Regional approaches critical to optimal results.
Political leadership and commitment the key.
International community should play supporting role
Regional Breakout Sessions
Regional integration critical to Africa trade growth.
Discussions centered on case studies from 6 RECs (COMESA, EAC, SADC, ECOWAS, ECCAS, UMA) .
That supply-side constraints were regional in nature was underscored due to smallness and landlockness.
Benefits of regional approaches identified in:
infrastructure, capacity projects, planning mechanisms and financing.
Regional Breakout Sessions West and Central Africa Selected Issues
High trade costs, weak institutions and fragmented infrastructure key obstacles.
But region has on-going liberalisation and integration initiatives including in NEPAD context.
Investment climate not optimal for business – dialogue needed between gov’t and private sector.
Regional Breakout Sessions: West and Central Africa Priorities
Human and institutional capacity building including of RECs.
Infrastructure development especially transport and utilities.
AFT should build on what has been identified already as much as possible.
Assistance with adjustment costs of liberalisation.
Regional Breakout Sessions: Eastern and Southern Africa Selected Issues
Region has comprehensive programs e.g. the North-South Corridor Initiative encompassing trade facilitation, and connectivity infrastructure.
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