Cape town: Dr. Robb Davies, a former Minister of Trade and Industry to South Africa, is praising the AfCFTA Secretariat for leading the continent toward a strategic transition from negotiating the African Continental Free Trade Area (AfCFTA) to implementing regional value chains. This shift aims to help Africa avoid being locked into raw material extraction as the global economy transitions to a low-carbon future.
According to Ghana Web, Dr. Rob Davies, who was South Africa's Minister of Trade and Industry during the AfCFTA negotiations and is now associated with the Nelson Mandela School of Governance at the University of Cape Town, emphasized that the path to industrialization through exports to the Global North is fraught with obstacles. He asserted that Africa's only viable route now lies in building production capacity for the continental market. Dr. Davies highlighted the importance of the African market and building solidarity to confront global challenges.
The former Trade and Industry Minister noted that the AfCFTA's creation of a market of 1.5 billion people with a combined GDP exceeding three trillion dollars positions Africa as the eighth-largest economy globally as a bloc. This development offers opportunities for deeper and more inclusive industrialization than attempting to do so in individual countries, even the largest ones.
Davies focused on Africa's role in the global transition to a low-carbon economy, warning of the risks if the continent continues supplying only raw materials for green technologies manufactured elsewhere. He stressed that Africa holds significant mineral resources required for new low-carbon technologies but risks remaining at the bottom of value chains if it doesn't pursue value addition and industrial support.
Dr. Davies argued that Africa must have the courage to assert itself in the global market by demanding value addition and investments in its industrial efforts in exchange for access to its minerals. He suggested that this approach aligns with the bargaining strategies of countries making industrial progress, and Africa must engage in similar practices.
Concluding his remarks, Dr. Rob Davies challenged stakeholders across the continent to consider how they can work within the framework of the AfCFTA. He emphasized that all economic activities must be viewed through the lens of the continental-wide market established by the AfCFTA, as there is much to be gained from collaborative efforts across the continent.