STATEMENT OF MS. AHUNNA EZIAKONWA
ASSISTANT SECRETARY GENERAL, ASSISTANT ADMINISTRATOR AND DIRECTOR UNDP REGIONAL BUREAU FOR AFRICA
Meeting of African Union Council of Ministers
Delivered by Dr. Joy Kategekwa – Strategic Advisor on Africa - UNDP

Distinguished Ministers; The Secretary General of the AfCFTA Secretariat; The Commissioner for Trade and Industry of the AUC, Senior Trade Officials, Representatives of the Diplomatic Corps, Distinguished delegates, Ladies and Gentlemen.

It gives me great pleasure to address you on this Council of Ministers of the State Parties of the AfCFTA. This meeting is critical for preparations towards commencement of trading Under the AfCFTA - scheduled for 1 January 2021.

Many years ago, the forefathers of Africa’s integration dreamed of times such as this – when the continent would come together for a common purpose, and put the interests of Africa’s socioeconomic development at the fore – so that the wealth of the continent can work for its people, creating and capturing value, diversifying the product range and an export base, for successful African economies.
The 2019 entry into force of the AfCFTA was one step in that direction. We are now getting much closer to taking the AfCFTA out of the treaty text, and into the lives of Africa’s people.

With the start of trading of the AfCFTA, we expect a quantum leap in intra- African trade – shooting up from its current 18%, and creating greater opportunities for African enterprise and exporters to create jobs and raise incomes.

Today’s meeting also coincides with a celebration of Africa Industrialization Day. It is not a coincidence, Distinguished Ministers, that it should happen this way. For, behind the instrument of the AfCFTA, is a gateway to attaining Africa’s Industrialization Goals. Creating enhanced opportunities for market access will trigger new and dynamic opportunities for industrialization in Africa.

We also meet at a time when we seek ways and means to recovery from the devastating and unprecedented development reversal occasioned on Africa, by the COVID 19 pandemic.

Africa was on an ascendant trajectory pre-COVID. We counted, with pride, as many more African countries joined the rungs of the list of the world’s fastest growing economies. We pointed out the need for such growth to be inclusive and job-filled and welcomed the important advancements that were being made in shrinking inequality, as UNDP’s Human Development Report 2019 stated.

COVID 19 has set Africa back in significantly powerful ways. The IMF confirms that income earnings worth 200 billion are already scraped off the books. The World Bank’s Africa Pulse predicts GDP contractions of – 5.1%. UNCTAD finds that Africa has lost 500 billion in export earnings, and that FDI has tumbled to the tune of 40%. A debt crisis is firmly with us, with UNDP’s recent studies confirming a complex problem compounded by a multiplicity of multilateral, bilateral and private debt. At a time when governments need large sums of resources to meet pressing health and public sector needs, they also contend with one of the most unprecedented fiscal pressures of our time.

For us in UNDP, the AfCFTA is a welcome addition to the policy direction that must inform Africa’s recovery from COVID 19, and its onward efforts on attainment of the Sustainable Development Goals.
The start of trading of the AfCFTA coincides with the Decade of Action for the SDGs. It is my hope that we can embrace the AfCFTA as something more than a trade liberalizing instrument. Successful implementation will require positioning the AfCFTA in its right context – as a driver of development.

As Africa trades more, incomes rise from jobs in production of goods and services and in export and trade facilitation. Foreign exchange increases, creating better prospects for fighting chronic balance of payments and trade deficits, freeing up resources to finance development. Enhanced opportunities for intra-African trade will accelerate better returns from natural resource governance – by increasing opportunities for trade in value added products. This is a boon for Africa’s commodity – based export profile – and a step forward on industrialization creating better skilled jobs due to enhanced production. In services sectors such as transport, telecommunications, energy and infrastructure, increasing intra-African trade will accelerate opportunities to empower youth and women, creating alternative livelihood options for young people, including in conflict areas, and thereby contributing to sustained peace and security. Dismantling barriers to trade in energy will enhance readiness for Africa leading the fourth industrial revolution. And intra-African trade in renewable and adaptative technologies will spread the breadth of good practice, opening the door for more progress on climate change mitigation and adaptation.
Both the UNDP Administrator, Mr. Achim Steiner, and I, have been engaged in discussions with Secretary General Mr. Wamkele Mene and his senior leadership team. We have identified critical areas of a partnership in support for implementation, including strengthening institutional support; exporters capacities to implement, and the knowledge base on the AfCFTA across Africa. In this partnership, we are seized with contributing to ensuring that the AfCFTA is utilized by women and youth. I look forward to the imminent opportunity to finalize our Memorandum of Understanding.

Distinguished Ministers, UNDP has presence across all African capitals. Our Next-Generation UNDP Resident Representatives are looking forward to working with you, to explore additional ways and means through which our presence on the ground can support your efforts for maximizing opportunities in the AfCFTA.

I look forward to working with you as we join efforts to attain Africa’s development promise through the AfCFTA.

Thank you for your attention, and I wish you successful deliberations.