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Moghalu disclosed this while speaking yesterday at the
AfCFTA Joint Private Sector Session during the 2023 Afreximbank Intra-African
Trade Fair in Cairo, Egypt.
“As of August 2023, 47 out of 54 African countries have
ratified the treaty. When fully implemented, the AfCFTA will boost
intra-African trade by 52%, lift 30 million people out of poverty, and increase
the continent’s GDP by USD 450 billion by 2035,” he said.
He noted that the envisaged quantum leap from the impact of
AfCFTA is not misplaced as Africa trades far less within itself than other
continents.
“It is no accident that these continents are the wealthiest
in the world: 70% of Europe’s trade is within Europe. 59% of Asia’s, and 30% of
North America’s trade is intra-regional. In contrast, only 16% of Africa’s
global trade is within Africa,” he added.
Moghalu however, said AfCTA targets simply cannot be
achieved without the private sector.
While governments have signed and ratified the AfCFTA, it is
companies and business enterprises that trade acrossAfrica, far more than
governments.
“This means that the African private sector must be
strengthened to leverage the provisions and protocols of the AfCFTA to expand
intra-African trade to create prosperity.
“Two critical conditions must be met. The first is an
understanding across all stakeholder groups of the balance between the state
and the markets in wealth creation. While it ultimately is the private sector
that will directly unlock prosperity for Africa, and Africans are broadly
enterprising people, the truth is that without effective governments,
governance and public policy, they can’t. Every prosperous country has a
competent, effective state as a backdrop,” he said.
Moghalu emphasized the necessity of adopting the Private
Sector Bill of Rights (PSBoR) as a complementary instrument alongside the
Regional Economic Communities, RECs and AfCFTA to shape the desired future for
Africa.
According to him, PSBoR is critical in fostering economic
growth, combating poverty, and positioning Africa as a thriving business hub.
In outlining the interconnectedness of the PSBoR with the
RECs and AfCFTA, Moghalu stressed that its adoption would contribute to
thriving businesses, increased tax revenues for governments, and the
sustainability of capital markets.
“We will seek adoption by national parliaments and/or the
Executive branches of government. We are walking a similar path as that which
led to the successful adoption of the AfCFTA.
“The specific rights identified in the Private Sector Bill
of Rights come from the protocols of the RECs and AfCFTA. The PSBoR is intended
as an essential companion instrument to the AfCFTA treaty, one that
domesticates the continental trade agreement inside national governments,
private sector governing and coordinating entities, and in the operations of
the African marketplace in reality.
“I believe that the Private Sector Bill of Rights when
adopted by African countries and alongside the RECs and AfCFTA, addresses a
fundamental conundrum that has confronted post-colonial Africa for decades.
“Why have market-oriented economies created broad-based
wealth in Europe, North America and increasingly in Asia but poverty remains
high in the vast majority of African countries?
Breaking this jinx is the goal of the AfCFTA and the African Union’s
vision 2063 – The Africa We Want,” he said.
He attributed high poverty in the continent to the
relatively low level of intra-African trade.
“The PSBoR guarantees, amongst other rights, the right to
favourable credit terms to support short, medium and long-term investment
projects as well as trade credit supported by the Africa Trade Insurance. It
also guarantees the right to benefit from scientific progress (innovation) and
the right to local content in intellectual property,” he said.