The synergy between President Mahama’s flagship 24-Hour Economy policy and the AfCFTA is quite complementary. According to Francis-Xavier Kojo Sosu, Member of Parliament (MP) for Madina Constituency, he believes AfCFTA presents transformative opportunities for local businesses.
By facilitating expanded markets and enhancing industrial output, the 24-hour economy policy will flourish by creating jobs and driving economic growth, the Madina MP explains.
The 24-hour economy initiative aims to ensure round-the-clock industrial and commercial activity. This will be complemented by AfCFTA providing a platform for seamless trade across the continent.
Indeed, AfCFTA offers transformative prospects for trade liberalisation, enhanced industrial output and economic growth across the continent. By eliminating tariffs and reducing non-tariff barriers, the agreement is expected to increase trade volumes and unlock opportunities for businesses in member-states.
Despite its immense potential, AfCFTA’s implementation has not been without challenges. A recent World Bank study underscored the importance of political will, policy harmonisation and infrastructure development in achieving the agreement’s full benefits.
Projections have it that by 2035 AfCFTA could lift 30 million people out of extreme poverty and generate US$450billion in real income gains if fully implemented. However, these outcomes depend on African governments aligning their domestic trade laws with AfCFTA protocols and committing to regional integration.
To this end, therefore, Mr. Sosu is calling for strategic investments in trade-related infrastructure, including transportation networks and digital connectivity, to ensure Ghana capitalises on opportunities presented by the agreement.
In addition to infrastructure, capacity building has emerged as a critical area of focus. Mr. Sosu proposed educational initiatives to empower local small and medium-sized enterprises (SMEs) to leverage the AfCFTA’s market potential.
The integration of regional markets will foster greater economic resilience and reduce the continent’s dependence on external trade partners.
Africa ranks near the bottom when it comes to competing in the global economy, held back by fragmented markets that inhibit efficiency and constrain economic growth. Competitiveness goes hand in hand with trade performance – and therefore with economic growth.
Establishing one of the largest free trade areas in the world could boost competitiveness through other channels as well: technology transfer, industrial development, diversification of growth sources and expansion of intra-African trade.
