What must Africa do as to boost trade with itself?

Africa is on a mission to enhance its inter-regional trade, aiming to surpass the current 18% mark. In a recent interview with CNBC Africa, Albert Muchanga, the Commissioner for Trade and Industry of the African Union, shed light on the strategies in place to boost trade development on the continent. As the African Union works towards the goal of a thriving intra-African trade landscape, Muchanga emphasized the role of the private sector in lobbying governments to address business-related issues, highlighting the critical need for collaboration between the public and private sectors. Muchanga stressed the importance of involving the private sector in the developmental process, noting that it is a key component in the growth of African economies. The African Union has been receptive to the suggestions of the private sector, with initiatives such as the Pan-African Chamber of Commerce in Ghana advocating for the establishment of a Pan-African payment system. The African Union is actively working on this proposal, demonstrating its commitment to addressing the needs of the private sector to facilitate trade. The creation of the Continental Free Trade Area (CFTA) is poised to revolutionize business operations in Africa by eliminating tariffs on goods traded within the continent. By implementing efficient customs procedures and bolstering transportation and communication networks, the African Union aims to reduce the cost of doing business and enhance trade opportunities across Africa. Infrastructure development remains a crucial focus area for intra-African trade growth. The Pan-African infrastructure Development in Africa (PIDA) is a comprehensive program that targets key areas such as energy, connectivity, road networks, railways, and communications infrastructure. By investing significantly in these initiatives, the African Union aims to expedite the movement of goods within the continent, paving the way for increased trade volumes. Muchanga highlighted the involvement of heads of states in championing infrastructure projects, ensuring the effective execution of key initiatives. The African Union remains in constant communication with project champions and government officials to oversee the successful implementation of infrastructure projects. In terms of attracting capital investment for infrastructure projects, Muchanga noted that the issue of guarantees rests with individual national governments. While the African Union focuses on creating continental policy frameworks and promoting sustainable debt management practices, the issuance of sovereign guarantees remains a national responsibility. Muchanga emphasized the establishment of new financial institutions, such as the African Investment Bank, African Monetary Fund, and African Central Bank, as future endeavors to strengthen Africa's financial landscape. To expand intra-African trade beyond the current 18% mark, the African Union is exploring various strategies. Measures to formalize smuggling activities and eliminate trade barriers, both tariff and non-tariff, hold promise in boosting intra-African trade volumes significantly. Additionally, efforts to enhance the productive capacities of African economies through industrialization initiatives involving the private sector are expected to drive trade growth. The impending establishment of the Continental Free Trade Area (CFTA) is a major milestone in Africa's trade development agenda. The African Union is working diligently to finalize the legal instrument for the CFTA by December of this year. Negotiations are underway, with a summit scheduled in January 2018 for the President of Niger to present the draft agreement. The African Union is optimistic about the progress made towards enhancing intra-African trade and is poised to usher in a new era of trade development on the continent.