Accra: Businessman and Executive Chairman of Jonah Capital, Sam E. Jonah, has urged African countries to reduce their reliance on exporting raw materials and importing finished goods. During his address at the Global Business Forum, Jonah emphasized the importance of leveraging the continent's natural resources to foster economic growth and wealth creation within Africa.
According to Ghana Web, Sam Jonah pointed out the challenges posed by Africa's low intra-continental trade, which accounts for only about 15% to 16% of the region's total trade. This figure is significantly lower compared to other continents such as Asia and Europe. He highlighted the economic impact of exporting raw materials while importing finished products, using cocoa from Ghana and C´te d'Ivoire as a prime example. Despite being major cocoa producers, much of the value from chocolate production is realized outside Africa.
Jonah called for the African Continental Free Trade Area (AfCFTA) to evolve from mere agreements to practical implementations that benefit businesses and consumers. He stressed the necessity for improved infrastructure, including roads, ports, and border systems, to facilitate smoother and more cost-effective trade across the continent.
Furthermore, he cautioned that African businesses should not rely solely on local consumer patriotism but must ensure their products are competitive in terms of price, quality, and reliability. Jonah also advocated for African pension funds and institutional investors to invest more in local businesses and infrastructure instead of sending capital abroad and borrowing at higher interest rates for development.
He concluded by acknowledging the role of foreign investment while underscoring the critical need for African countries to cultivate robust domestic capital sources. The future of Africa's economy, according to Jonah, hinges on building strong businesses, increasing intra-African trade, and retaining more economic value from natural resources within the continent.