Karingi: AfCFTA dream lies in expanding regional value chains

Africa's economic potential lies in the successful implementation of regional trade under the Africa Continental Free Trade Area (AfCFTA). To achieve this, countries in the continent need to harmonize value chains and prioritize green industries. In a recent interview with CNBC Africa, Stephen Karingi, Director of the Regional Integration & Trade Division at the United Nations Economic Commission for Africa (UNECA), emphasized the importance of regional integration for Africa's economic growth. Karingi highlighted the significance of creating regional value chains that span across borders, allowing for the seamless movement of inputs and products. He stressed the need for sustainability in the development of these value chains, particularly in the context of a green economy. Karingi pointed out that the AfCFTA is expected to drive industrialization on the continent, with a focus on value-added and manufactured goods. However, he also addressed concerns about the potential environmental impact of increased industrial activity and transportation. To mitigate this, Karingi proposed aligning the implementation of the AfCFTA with commitments to reduce carbon emissions, both at the national and international levels. By investing in green energy and prioritizing green industries, Africa can achieve industrial growth without compromising its environmental goals. Karingi further discussed the role of regional integration in mobilizing private capital and the potential for carbon markets to incentivize climate-friendly practices. He highlighted the importance of a coordinated approach to setting carbon prices across the continent to ensure fair and equitable market conditions. Karingi acknowledged the need for further dialogue and collaboration on carbon border adjustment mechanisms to address carbon emissions consistently across different regions. In conclusion, Karingi emphasized the urgent need for African nations to fully implement the AfCFTA and prioritize investments in infrastructure for seamless trade across the continent. He identified the facilitation of cross-border movement and the development of key transportation networks as critical steps towards unlocking Africa's economic potential through regional integration and sustainable growth.