Industrialization, Demographic Dividend and the AfCFTA
A view from the Port of Doraleh, Djibouti, UN PhotoEvan Schneider
The establishment of the African Continental Free Trade Area (AfCFTA) provides opportunities for promoting value addition, industrialization, and economic diversification, as well as developing local and regional value chains. It will enable African countries to create much needed employment for the large number African youth, and generate resources for investment in human capital development, thereby harnessing the continent¡¯s demographic dividend. The COVID-19 pandemic has demonstrated the critical role of digital transformation in Africa. The COVID-19 responses provide an opportunity to accelerate application of practical digital solutions at scale, with impact on jobs and livelihoods.
Publications
Enhancing the Economic Participation of Women and Youth through the AfCFTA
The policy brief highlights the strategic potential of the African Continental Free Trade Area (AfCFTA) to drive inclusive growth in Africa by enhancing the economic participation of women and youth. It underscores the necessity of targeted policy reforms, emphasizing the AfCFTA¡¯s capacity to integrate women and youth into regional and global value chains, and advocates for policies that support their transition into formal economies. Key strategic interventions include finalizing and implementing the Protocol on Women and Youth in Trade, investments in human capital, and promoting digital platforms, such as e-commerce, which can expand trade opportunities. The AfCFTA can act as a catalyst for reducing poverty and inequality by fostering inclusive industrialization, focusing on sectors like agriculture and textiles that employ a high percentage of women. For maximum impact, the brief calls for gender- and youth-sensitive policies within AfCFTA national implementation strategies. By removing barriers to participation and enhancing access to markets and finance, the AfCFTA offers a pathway to realizing Africa¡¯s demographic dividend, contributing to the broader goals of Agenda 2063 and the 2030 Agenda for Sustainable Development.
Policy Brief: The African Continental Free Trade Area (AfCFTA)
Established in 2018 and operationalized in January 2021, the African Continental Free Trade Area (AfCFTA) holds great potential for promoting Africa¡¯s inclusive growth and sustainable development. The trade agreement creates a market of 1.3 billion people and a combined GDP of $3.4 trillion. A year after the AfCFTA¡¯s operationalization, this policy brief looks at progress, challenges and status of implementation. It also makes recommendations for Africa to fully benefit from the agreement.
Available in full colour (Arabic, English, French, Portugese, Russian, Spanish and Chinese)
Read about the authors, Gilberto Ant¨®nio and Hussein El-Shaar.