The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, and other members of the African Caucus have urged immediate removal of barriers to intra-African trade.
This formed the central position as contained in communique issued at the end of the Caucus meeting which held between August 1-3 in Abuja.
African Caucus is the body of African Ministers of Finance and Central Bank Governors of the region under the auspices of the World Bank and the International Monetary Fund (IMF).
According to the communique sent to the media yesterday, "The meeting recognized the importance of intra-African trade in unlocking production, investments, and jobs in Africa.
"It also took cognizance that African countries continue to trade with the rest of the world more than among themselves.
"The meeting agreed that addressing both tariff and non-tariff barriers to intra-African trade--including fragmented payment ecosystems, poor energy access, lack of infrastructure, inconsistent regulatory frameworks, and divergent cross-border procedures-- was critical to bolstering Africa's share of global trade and stimulating sustainable and inclusive growth in the continent.
"The meeting also underscored the point that trade could stimulate economic growth by creating opportunities for increased production, investment, and job creation.
"It provides access to larger markets, new technologies, and capital. The African Continental Free Trade Area (AfCFTA) aims to promote trade among African countries by reducing trade barriers, harmonising regulations, and facilitating the movement of goods and services within the continent."
The Governors underlined four key pathways to boosting intra-Africa trade, namely: strengthening pan African payment ecosystem; enhancing energy access, affordability, and connectivity; leveraging partnerships with MDBs; and reforming global financial architecture.
The Caucus also called on the IMF and World Bank Group to ensure that their support to member countries continued to be guided by principles of balance and evenhandedness, and consistent with their own policies.
" These considerations are all the more important at a time when countries are being assailed by adverse exogenous shocks and facing immense financing needs," the Caucus said.
The theme for the 2024 Caucus Meeting, "Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa" identified major drivers for growth and development across the continent.
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The meeting took place amid a synchronised global economic slowdown, with global GDP growth decelerating due to monetary tightening in developing countries and disruptions in global supply chains, exacerbated by geopolitical tensions, including the Ukraine and Palestinian crises.
These factors further strain development prospects. Despite Africa's remarkable resilience, evidenced by its GDP growth, intra-African trade remains relatively low, accounting for only about 14.4% of total African exports.
Caucus calls for $120 b replenishment
The Caucus reiterated the call of Heads of State to donor countries for an ambitious and robust IDA21 replenishment at a US$120 billion target to combat persistent and emerging challenges such as climate change, food insecurity, energy deficit, and fragility.
The outcomes of this 2024 African Caucus deliberations will be summarized in a Memorandum to be delivered to the Heads of the World Bank and IMF during the Annual Meetings in Washington, USA in October.
The African Caucus was established in 1963 to strengthen the voice of African Governors to the issues of mutual interest for Africa. Membership of the Caucus is open to all African countries that are members of the African Union (AU). Currently, all 54 African countries are members of the IMF and WBG.
The countries are represented by their respective Ministers of Finance and Governors of the Central Bank or by other officials designated as such by the governments.
