Africa’s general economic performance continues to recover and GDP growth is projected to accelerate to 4% in 2019 and 4.1% in 2020. But improved macroeconomic and employment outcomes require industry to lead growth, according to the 2019 African Economic Outlook report, launched today by the African Development Bank.
Published annually since 2003, the African Development Bank’s flagship report provides headline numbers on Africa’s economic performance and outlook.
The 2019 report analyses gains of regional public goods, including synchronizing financial governance frameworks, opening regional aviation to competition, and facilitating the free movements of people, goods, and services through open borders.
“Even though the report presents daunting challenges, Africa has the means to overcome them by joining hands together and removing barriers to integration and drivers of migration, ” says the Bank’s Senior Vice President Charles Boamah.
The report focuses on three key areas – Africa’s macroeconomic performance and prospects; Jobs, growth, and firm dynamism and Integration for Africa’s economic prosperity.
At the core of African integration, the African Economic Outlook suggests that “a borderless Africa” is one of the key foundations of a competitive continental market that could serve as a global business center.” The Continental Free Trade Agreement (CFTA), signed in March 2018 by 44 African countries, therefore offers substantial gains for all African countries the report says, citing new data and analytics.
Significantly, the report identifies five key trade policy actions that could potentially bring Africa’s total gains to 4.5 percent of its GDP, or U$134 billion a year:
- Eliminating all applied bilateral tariffs in Africa;
- Keeping rules of origin simple, ﬂexible, and transparent;
- Removing all nontariff barriers on goods and services;
- Implementing the World Trade Organization’s Trade Facilitation Agreement to reduce cross border time and transaction costs tied to nontariff measures and ;
- Negotiating with other developing countries to reduce their tariffs and nontariff barriers, by 50%.
The report is released just three months ahead of the Bank’s Annual Meetings, which will take place in Malabo, Equatorial Guinea in May, where a full set of updated growth projections will also be released.
The full report is available here >>>http://www.afdb.org/aeo