Innovative policies, partnerships key to AfCFTA implementation

Innovative policies and robust partnerships are crucial to the implementation of the African Continental Free Trade Agreement (AfCFTA), experts have said.

At a just-concluded virtual workshop on modelling the impact of AfCFTA on African economies held in Addis Ababa, participants underscored the role of economic modelling in crafting evidence-based policies for AfCFTA’s successful implementation.

The workshop was organized by the Macroeconomics, Finance, and Governance Division (MFGD) of the Economic Commission for Africa (ECA) and themed, ‘Modelling the Impact of the African Continental Free Trade Agreement (AfCFTA) on African Economies.’

Head of Macroeconomic Analysis Section of the MFGD, Hopestone Chavula, highlighted AfCFTA’s significance, stating that it is not just a trade agreement but is also a platform for economic transformation.

He said it provides Africa with an opportunity to strengthen regional integration, enhance industrialization, and reduce poverty while positioning the continent as a competitive player in the global economy.

He emphasised the importance of leveraging economic modelling to navigate uncertainties, align policies, and track progress toward a more integrated, resilient, and inclusive African economy, taking into consideration the challenges and opportunities associated with its implementation.

The event also focused on strengthening participants’ ability to use advanced economic modelling tools to assess AfCFTA’s impact on African economies; explore how modelling insights could influence policy decision-making and proffer solutions for supply-side constraints, tariff and non-tariff barriers, and the infrastructure gap, which they all agreed impede AfCFTA’s transformative potential.

Participants further explored various scenarios, such as tariff reductions, infrastructure investments, and the removal of non-tariff barriers, to understand the agreement’s potential impacts across sectors, countries, and regional economic communities.