CI-NEWS

World Bank Report: AfCFTA to get 30 million people out of poverty.

2020-08-10

No: 521

World Bank Report: AfCFTA to get 30 million people out of poverty.

The World Bank, in a report says the African Continental Free Trade Area, AfCFTA, due to begin on January 1, 2021 will get some 30 million people out of poverty.

The report which was presented during a webinar, moderated by Cameroonian- born Albert Zeufack, who is World Bank Chief Economist for the Africa Region, recommended the African model for countries desiring to get out of economic shocks.

In the report, the bank said Africa was leading the way. And it explores how the continent has succeeded to establish a 21^st century trade agenda. “The African Continental Free Trade Area (AfCFTA) agreement stands to connect 1.3 billion people across 55 countries, making it the largest free trade area in the World by membership”, part of the report read. The bank further stresses that if well exploited, the results could be far-reaching. “The pact has the potential to lift 30 million people out of extreme poverty, increase workers’ wages and generate gains for women,” the bank added.

Getting to the desired future will not just come. The World Bank prescribes the establishment of significant policy reforms that will facilitate the exploration of this endowed potential. The report has been entitled: The African Continental Free Trade Area: Economic and Distributional Effects.

It has been designed to help countries implement policies that can maximize the agreement’s potential gains while minimizing risks. Through a discussion moderated by Albert Zeufack, World Bank Chief Economist for Africa, speakers and leading experts discussed the economics behind the trade agreement and “how policymakers can use the AfCFTA to increase competition and prepare their workforces to take advantage of new opportunities”.

Digital options considered

As nations look to hit the road to economic recovery next year, the bank says the AfCFTA module can be a perfect example. “The creation of the AfCFTA regional market is a major opportunity to help African countries diversify their exports and accelerate growth. This is especially important in the context of the Co-vid-19 pandemic, which has disrupted trade and triggered up to $79 billion (about FCFA44.1 quadrillion) in output losses during 2020 in Africa alone,” another segment of the report read.

In mid-July, 2020, the new Secretary General of the AfCFTA, Wamkele Mene, said they were considering digital options for the market place. They building from the experiences of various countries across the African continent, where distant markets could be accessed using simple mobile phones. He said they will be connecting the different digital platforms that already exist in the different countries that have the AfCFTA membership.

Culled from Cameroon Insider

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World Bank Report: AfCFTA to get 30 million people out of poverty.