By: Sintayhu Tamirat
"Ethiopia stands at the forefront", as Africa moves forward with African Continental Free Trade Area (AfCFTA), said State Minister for Finance.
The state minister's remark came as she welcomed the participants at the 43rd meeting of the Committee of Experts of the Conference of African Ministers, which is underway in Addis Ababa Wednesday with the theme "Advancing the Implementation of the Agreement Establishing the African Continental Free Trade Area: Proposing Transformative Strategic Action.”
The state minister Semerta said Ethiopia has been doing a lot by embracing the AfCFTA historic agreement "with the conviction that enhanced economic cooperation is key to unlocking the continent’s full potential."
AfCFTA is a bold and transformative step toward deepening Africa’s economic integration, she underscored. "By facilitating intra-African trade, harmonizing policies, and removing barriers, the agreement serves as a powerful tool to unlock the economic potential of our continent."
Projections like enhanced industrialization, job creation, and poverty reduction are integral to achieving the aspirations of Agenda 2063, Africa’s blueprint for inclusive and sustainable development.
However, the context is not bed of roses for African countries, she said, recommended some ways out. "The deliberations of this Committee of Experts are critical in addressing these challenges. Your ability to propose strategic, actionable recommendations will ensure that the AfCFTA becomes a tool of tangible progress rather than mere aspiration. This requires harnessing research, leveraging partnerships, and fostering collaboration across sectors and regions."
Although the signing and the commenced AfCFTA implementation marks a major milestone in Africa’s journey toward economic integration, the progress remains slow, with intra-African trade still accounting for only 14.4% of total trade on the continent, semerta pointed out mentioning ECA report.
"This figure pales in comparison to other regions, such as Europe or Asia, where intra-regional trade is a key driver of prosperity. This disparity is not due to a lack of potential, but rather to barriers that hinder our businesses, entrepreneurs, and industries from thriving in a unified market. With the AfCFTA, we have an unprecedented opportunity to address these barriers and unlock the full potential of African trade," she said.
She emphasized the need for robust infrastructure development, significant investment to strengthen human capital and action against ongoing conflicts, violent extremism, and restrictions on the free movement of people, which continue to hinder Africa’s vision of a fully integrated and prosperous continent.
As Ethiopia has been endeavoring for AfCFTA implementation, it deemed infrastructure as a cornerstone of the country’s regional integration efforts, she noted.
"Through massive investments in road and rail networks, we are
Improving connectivity between Ethiopia and neighboring countries. The Addis Ababa-Djibouti railway, for example, is a lifeline for trade, facilitating the movement of goods and strengthening economic ties across the Horn of Africa. Our partnership in the LAPSSET Corridor with Kenya further demonstrates Ethiopia’s commitment to enhancing regional logistics, ensuring that trade flows more efficiently across borders."
Speaking on another key economic infrastructure with which Ethiopia has exhibited commitment to AfCFTA implementation, she mentioned that Ethiopia remains committed to Africa's Energy transformation.
"Ethiopia is Energy cooperation is another pillar of our integration efforts. Ethiopia’s vast hydropower resources, including the Grand Ethiopian Renaissance Dam, position us as a leader in regional energy trade. By exporting electricity to neighboring countries we are not only fostering economic integration in the region but also supporting industrialization and development across Africa. Reliable and affordable energy is fundamental to economic growth, and Ethiopia remains committed to being a key player in Africa’s energy transformation."
According to Semerta, Ethiopia's facilitation of intraregional trade Ethiopia has paved "the way for a more interconnected and self-sufficient continent."
"Trade and industrialization are also central to Ethiopia’s regional strategy. The development of industrial parks and special economic zones attracts investors and promotes value-added production, enhancing Africa’s manufacturing capacity," she highlighted.
Despite the unfolding challenges, "Ethiopia remains unwavering in its vision of a fully integrated Africa. We stand ready to work alongside our African brothers and sisters to build a future of shared prosperity, driven by trade, connectivity, and economic collaboration. Together, we can realize the dream of a thriving, interconnected, and prosperous Africa," the minister of state underlined.
Opening the session, Deputy Executive Secretary of UNECA, Antonio Pedro, said the AfCFTA is more than mere free trade agreement. He questioned whether Africa must continue to import fertilizers and refined petroleum products from outside the continent when those are currently being produced locally.
Explaining the present African market scenario, which contrasts the AfCFTA scenario, he said "Today, about 85% of Africa’s total export is directed to the rest of the world, with a strong concentration in primary commodities that account for over 60% of the total. This contrasts with the composition of intra-African trade, although admittedly small (based on available statistics and not accounting for informal trade)."
With promising features, intra-African trade is more diversified, with the bulk of it made up of industrial products. "This is where the AfCFTA is expected to be a game changer," he suggested.
Addressing the importance of the private sector, the deputy executive secretary advised that Africa should not expect intra-African trade to change without the African private sector knowing about it, embracing it, and playing a key role in supporting its operationalization.
"The transformational power of the AfCFTA can only be unleashed through a comprehensive, coordinated, inclusive and intentional action by all at all levels."