Nairobi, Kenya, Nov 7 – President William Ruto has highlighted the need for the easing of trade especially on payment of goods and services among African countries.
Speaking on Tuesday during the launch of the Africa Continental Free Trade Area (AFCFTA) and policy development centre at Strathmore University, Ruto has said easing the trade that happens in different currencies will greatly boost intra-African trade and investments.
“Africa has continued to rank at the bottom when it comes to participating, contributing and competing in the global economy relative to other regional blocs. It accounts for only 3 percent of global trade,“ Ruto stated.
“Why is a continent that is larger than all the other continents and land masses combined, which is home to over a billion people and sits on all these resources, contributing only 3 percent of global trade, and only 2.84 percent of global GDP?” he added.
The head of state said that African countries should address and attend to challenges facing facilitation of cross border trade, Infrastructure and Human capital development stating that economic exploitation and political instability have hindered African countries ability to participate fully in global trade and benefit from its own resources.
“According to the African Development Bank, Africa needs to invest between 130 -170 Billion Dollars annually in infrastructure for the next decade,” Said Ruto adding that the AFCFTA will serve as a catalyst for the investments due to improved transport ,energy and digital connectivity which will significantly reduce trade costs.
Ruto noted that the African Continental Free Trade Area (AfCFTA) , projected to create 2 million additional jobs and lift 30 million people out of extreme poverty by 2035, marks a significant milestone in Kenya’s economic transformation journey across the African continent.
“By eliminating trade barriers, boosting intra-African trade, and promoting investment, the AfCFTA has established a conducive environment for commerce and industry to thrive. It will enable African countries to attain sustainable economic development,“ he stated.
The president also revealed that Kenya has accepted a request to host the headquarters of pan African payment system to support Integration of the African Continent.
“Because we are leaders in the technology space and also promoters of African continental free trade area and any institution that supports integration of the African continent we have gladly accepted to host the headquarters of the Pan African payment system in Kenya,“ he added.
