Djibouti City officially hosted the summit of the African Continental Free Trade Area (AfCFTA) member countries yesterday, where the opportunities and challenges hindering trade integration across the continent were discussed.
The summit, which was opened by the Prime Minister of Djibouti, Abdoulkader Kamil Mohamed, was attended by Djibouti's Minister of Trade, the Chairman of Djibouti's Ports and Free Zones Authority, the Secretary-General of the AfCFTA, representatives from the member countries of the AfCFTA, members of Djibouti's government, and parliamentarians.
The opening session focused on accelerating the implementation of the AfCFTA agreement and addressing the challenges of border restrictions and varying policies among member states. The summit's goal was also to present plans for enhancing the region's economy, with delegates from participating countries discussing how to strengthen intra-African trade.
One of the speakers, the Chairman of Djibouti's Ports and Free Zones Authority, Aboubaker Omar Hadi, emphasized Africa’s strategic position as a global transport and logistics hub, linking Europe, Asia, and America. He explained that Africa’s economic power lies in its vast natural resources, including 60% of the world’s arable land, significant fresh water reserves such as the Nile and Congo rivers, and abundant mineral and energy resources.
However, he pointed out that intra-African trade is very low, only 17%, compared to 60% in Europe and 70% in Asia.
"This gap is caused by the limited deep-sea ports and poor infrastructure." said Abukar Omar Haadi.
He also mentioned that Africa’s trade deficit has reached $84.78 billion, as it struggles to manage large shipping vessels, which limits the potential for maritime trade.
To address these challenges, the Chairman called for strengthening human capacity through education and skill development, improving port infrastructure, and enhancing digitalization, airports, and customs procedures. He also advocated for the improvement of railways, roads, and ports, aligned with trade policies and the removal of business barriers across Africa.
These efforts, he said, are crucial to unlocking the continent’s vast trade potential and positioning Africa as a significant player in the global economy.
