Africa’s Free Trade Deal will boost Continent’s Economic Integration: World Bank
The agreement between three African economic committees on a new Free Trade Area (FTA) is paving the way for the region’s economic integration and for the continent’s integration in the world economy, World Bank Group president, Jim Yong Kim, said in a speech today at the Tripartite Summit in Sharm El-Sheikh.
World Bank Group President Kim expressed strong commitment to the Middle East and Africa regions today, praising the 26 member countries of the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC) for moving toward establishing a Tripartite Free Trade Area, the largest in Africa.
The tripartite grouping, which accounts for $1.2 trillion representing more than half of Africa’s GDP, has signed Wednesday a deal to create free trade zones for goods immediately, with the hope of introducing services and intra-continent investor opportunities at a later stage.
A free trade agreement has the potential to transform the continent, said Kim in a speech at the Tripartite Summit in Sharm El-Sheikh, during a two-day visit to Egypt. “My hope is that you find a path to finalize a trade agreement that presents new economic opportunities for the poor and vulnerable to lead better lives. This is an important moment toward a brighter economic future for the continent, connecting Cairo to Cape Town and much in-between will integrate Africa more completely into the global economy,” he said.
Kim spoke about the Bank Group’s strong commitment to help the two regions manage risks they are facing including global uncertainty, escalating conflict, threat of climate change, and infectious diseases.
World Bank aid to Africa will be higher this year compared to the $20 billion provided in 2014, said Kim without specifying this year’s target.
The World Bank Group President explained how regional integration is more than trade and that greater regional integration has a vital role to play in helping countries move beyond conflict and achieve greater economic growth. “In the Great Lakes Region, the Sahel, and the Horn of Africa, we’re designing programs that will help entire regions, including support for multi-country sustainable energy projects and improvements to cross-border trading, which promote peace and stability,” said Kim. The Bank Group is looking into expanding the regional partnership approach accompanied by strategic dialogue and development diplomacy in the Middle East, just as it does in Africa through partnerships with countries, the United Nations, and institutions such as the Islamic Development Bank and Africa Development Bank.
Kim also met with President Abdel Fattah al-Sisi and government officials to discuss Egypt’s key role in regional economic development, and how the World Bank Group can best support the country in achieving shared growth, economic inclusion, and social justice to address the needs of the poor and vulnerable, especially in lagging regions.
