The Economic Commission for Africa (ECA) has sounded a clarion call for urgent governmental intervention as Africa’s contribution to global Gross Domestic Product (GDP) remains disproportionately low. Adams Elhiraika, Director of Macro Economic Policy Division at ECA, conveyed these sentiments in an interview in Abuja.
Elhiraika highlighted a concerning trend where Africa continues to export its resources for processing abroad, resulting in a meager global value chain contribution of 1.7 percent. Despite Africa constituting nearly 18 percent of the global population, its GDP share is less than three percent—an unacceptable discrepancy prompting Elhiraika to advocate for decisive actions from African countries.
Looking to the future, Elhiraika stressed the imperative of translating political commitments into accelerated implementation, particularly in the context of the African Continental Free Trade Area (AfCFTA). He emphasized the crucial role of political commitment, supported by robust development plans, strategies, and institutions, in fostering industrialization.
Elhiraika sees promise in AfCFTA and the growing integration of African economies, considering them as pivotal momentum and historical opportunities for industrial development. Specifically, he called for actions that address barriers hindering the free movement of people, as well as tariffs and non-tariff obstacles impacting the flow of goods and services across Africa.
The director urged collaborative efforts among stakeholders, policymakers, and leaders at all levels to implement decisions geared toward Africa’s industrialization. Emphasizing proactive engagement, he underscored that addressing these challenges requires action at various levels, not solely dependent on top leaders.
