Experts Gather In Addis Ababa To Boost Economic, Social Development In Africa

A Committee of Experts has gathered at the UN Conference Centre in Addis Ababa to assess the state of economic and social development in Africa. The three-day meeting, held from 12-14 March, serves as a preparatory session ahead of the 2025 Conference of African Ministers of Finance, Planning, and Economic Development scheduled to hold 17-18th of March.

The experts will evaluate progress on regional integration and make recommendations for African ministers, who will meet on 17-18 March. This year’s conference focuses on the African Continental Free Trade Area (AfCFTA) and its role in driving economic transformation.

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AfCFTA as a Tool for Economic Growth

Ethiopia’s State Minister of Finance, Semereta Sewasew, highlighted the importance of AfCFTA in strengthening Africa’s economic and social development. She described it as more than a legal agreement, calling it a “transformative initiative” aimed at boosting trade, harmonising policies, and removing barriers.

“The AfCFTA can drive industrialisation, create jobs, and reduce poverty,” Sewasew stated. She stressed that successful implementation of the trade agreement is key to achieving Agenda 2063, Africa’s long-term development plan.

However, she acknowledged challenges such as infrastructure gaps, financial constraints, and unequal capacities among African nations. She urged experts to propose solutions that ensure AfCFTA benefits women, youth, and small businesses, which play a crucial role in Africa’s economy.

Ethiopia’s Commitment to Regional Integration

Sewasew also pointed to Ethiopia’s investments in regional infrastructure as proof of its commitment to integration. She cited projects like the Addis Ababa-Djibouti railway, which enhances trade across the Horn of Africa, and the Grand Ethiopian Renaissance Dam, which strengthens regional energy cooperation.

These projects, she said, demonstrate how strategic investments can contribute to Africa’s economic and social development.

Strengthening Intra-African Trade

Antonio Pedro, Deputy Executive Secretary of the Economic Commission for Africa (ECA), reinforced the importance of AfCFTA in transforming Africa’s trade landscape. He noted that intra-African trade remains low, accounting for only 14.4% of total trade. However, he projected that reducing tariffs and trade barriers could increase intra-African trade by 45% by 2045.

Pedro also called for a shift away from Africa’s dependence on imports. He urged countries to invest in local production, particularly in essential goods such as fertilisers and refined petroleum. Strengthening local industries, he argued, is critical to long-term economic and social development.

Infrastructure Development as a Key Factor

Pedro stressed that achieving AfCFTA’s goals requires significant investment in infrastructure. He estimated that Africa needs approximately $411 billion for transport infrastructure, including railways, vessels, and trucks, to support increased trade.

“Without the right infrastructure, we cannot fully unlock the benefits of AfCFTA,” Pedro warned. He called for collaborative efforts among African nations to bridge the infrastructure gap.

A Push for Fair Global Financial Policies

The outgoing Chair of the Conference of African Ministers, representing Zimbabwe, acknowledged progress made by the ECA in supporting African economies. He highlighted achievements in macroeconomic stability, development planning, and industrialisation.

He also called for a fair global financial system that recognises Africa’s economic needs. He argued that structural inequalities in global finance must be addressed to help African countries implement AfCFTA and drive sustainable economic and social development.

Ministers to Review Recommendations

The Conference of African Ministers of Finance, Planning, and Economic Development serves as a key platform for discussing Africa’s economic policies. Ministers and central bank governors will review the experts’ recommendations and explore ways to strengthen regional cooperation.

With AfCFTA at the centre of discussions, the focus remains on unlocking Africa’s trade potential and promoting sustainable growth. The upcoming ministerial segment will be crucial in determining the next steps for Africa’s economic and social development.