For increased intratrade in Africa, it is “crucial” to address the low manufacturing and processing capacity on the continent.
To meet these industrialisation goals Africa also needs to rapidly overcome its US$100 billion per annum infrastructure deficit, according to Gauteng premier, David Makhura.
“In the context of today’s increasingly interconnected global market, the prosperity of nations no longer depends on the individual country’s productivity but also on quality of trade and the choice of trading partners,” he said, speaking at the recent Gauteng Infrastructure Investment Conference at the Gallagher Convention Centre.
He highlighted that while intra-trade in Africa was woefully underdeveloped there were positive growth signs, with the services trade on the continent growing from US$140 billion in 2005 to US$270 billion in 2016.
“Intra-Africa trade has also proven to be more resilient than exchanges with other parts of the world. After the 2007/2008 global financial crisis, intra-Africa trade suffered less than trade with the rest of the world. It has the greatest potential to increase Africa’s selfreliance,” commented Makhura.
Africa’s export basket needs to be expanded however. Currently, one out of four African countries rely on one or two commodities for around 75% of their exports.
“We are therefore advocating a smart, green-technology driven industrialisation, underpinned by the sustainable use of our natural resources to develop new industries,” he said.
