The Executive Secretary of the UN Economic Commission for Africa (ECA), Ms. Vera Songwe has disclosed that the African Continental Free Trade Area (AFCFTA) is capable of playing the same role as Europe’s Marshall Plan while accelerating regional and economic integration in the continent.
Songwe made this statement during a virtual panel by the African Union, AU marking the Africa Integration for the Continental Free Trade Agreement.
“We need to talk about Africa and AfCFTA. Our Marshall Plan is the AfCFTA. The AfCFTA is our plan, so let us take it and run with it. The Marshall Plan for Europe was about 160 percent of their Gross Domestic Product, GDP traded to bring back growth after the war” she said.
Songwe was joined on the panel by Mr. Mukhisa Kituyi, Secretary-General of UNCTAD; Mr. Benedict Okey Oramah, President of African Export-Import Bank (Afreximbank); Mr. Wamkele Mene, first Secretary-General of the AfCFTA; Mr. Chileshe Mpundu Kapwepwe, Secretary-General COMESA; and Paolo Gomes of AfroChampions.
According to Songwe, the implementation of the AFCFTA would help the continent have control of its economic future. She added that the UN Economic Commission for Africa forecasts African GDP would decline by 3.2% to -2.8% in 2020 due to the effects of the pandemic.
She stressed the need for a continental financial system integration to implement a mutual system of financial stability for sub-Saharan monetary cooperation, while also urging that Africa builds on progress made from implementing The Afreximbank Exchange Facility.
“We need to ensure that as we build the AfCFTA and trade integration, we begin to build stronger, much more robust monetary and fiscal systems that can ensure that as a continent we actually can work with each other more effectively,” Songwe added.
