ADDIS ABABA – Africa needs to improve its infrastructure specifically transport and telecommunications that are directly needed to move goods and services.
This was the sentiment expressed by Minister of Trade and Industry, Calle Schelttwein, at the opening of the 9th Conference of African Union (AU) Ministers of Trade in Addis Ababa, Ethiopia on 04 December 2014.
“If we want to trade gainfully and optimally we need to move away from trade in raw materials and move up the value chains and trade in finished goods among ourselves and with the rest of the world,” said Schlettwein.
He said industrialisation would demand that Africa build its productive capacities that would form important pillars in its agenda for economic integration.
“All of us across the continent have agriculture and food production as our main sectors and we trade in commodities; therefore we need to diversify our industrial base,” he suggested.
He pointed out that many African economies had a narrow tax base and depended largely on customs and excise income. “Obviously free trade will erode that revenue base. Many of our economies also rely heavily on the informal sector and as we know this sector does not pay tax. Therefore, we need to think and consult our ministers of finance on how we induce gains that will compensate for the loss of this revenue base,” Schlettwein said.
He said Africa was on the rise and there was reason to be optimistic about the continent.
Schlettwein noted that Africa had some of the fastest growing economies, a demography consisting of a youthful continent and workforce, a growing middle class population which would result in a an interesting market for other economies.
“We as African Ministers of Trade need to make sure that the economic gains that we get are translated into wealth creation in our countries to address unemployment, improve education and skills as well as health situations.
“We need to find a formula that will improve and optimise our economic gains, share what we get out of free trade arrangements and global trade,” said Schlettwein.
He said another aspect Africans needed to look at was policy space so as to get the best deal from global trade liberalisation adding that how Africans treat and look after their traditional knowledge, intellectual property and innovation would determine the development of new commodities and services.
He said the other important question Africans need to ask themselves was why their voice was weak and yet they were greater in numbers at multilateral bodies and platforms such as the World Bank, International Monetary Fund, UN and World Trade Organisation.
“We need to make Africa’s voice loud and heard by others. Part of our discussions and demands must be the reform of these organisations. Africa’s ability to influence global rule-making must be strong,” Schlettwein said.
By Staff Reporter