The 2024 UN Trade and Development report shows Africa can build economic strength by combining trade functions with investment and regional markets. On February 10 UNCTAD Secretary-General Rebeca Grynspan and Côte d’Ivoire’s Minister Souleymane Diarrassouba introduced a report that shows why strategic investments plus policy changes are critical.
Africa has major economic difficulties because it depends mostly on selling natural resources and its places to do business lack quality while trading costs remain high. The Secretary-General says that these business obstacles help Africa create better economic prospects for the future. When Africa implements its macroeconomic reforms plus the whole African Continental Free Trade Area it will become a stronger global trading force.
Reducing Dependency and Strengthening SMEs
Oil and mineral-exporting nations in Africa face significant risks from changing global raw material prices because these assets make up more than 60% of their export product sales. Widening connections between Africa and other nations plus creating more exports allows national income to remain steady. The absence of good transport, energy, and telecom networks pushes African trading costs up by half while delaying market results.
Since Small and Medium Enterprises make up 80% of African employment they encounter money shortages and struggle with currency exchange fluctuations that hurt their operations. Smaller businesses will take advantage of future economic changes when they can receive more credit funds and build stronger trading partners across Africa.
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Unlocking Regional Trade Potential
Africa conducts only 16 percent of all its export transactions within the region. The AfCFTA will open up $3.4 trillion in new trade chances but needs to boost road and utility systems along with improved trade rules alongside business growth plans such as tax benefits and lower loans.According to UNCTAD, the African region will lead worldwide development when it implements adequate investment plans alongside economic changes.
