Political momentum towards Africa-wide free trade has been intensifying. In March 2018, over 40 countries signed the African Continental Free Trade Area (AfCFTA) agreement. Once fully implemented, the AfCFTA is expected to cover all 55 African countries, with a combined GDP of about US$2.2 trillion. This SDN takes stock of recent trade developments in Sub-Saharan Africa and assesses the potential benefits and costs of the AfCFTA, as well as challenges to its successful implementation. In addition to increased trade flows both in existing and new products, the AfCFTA has the potential to generate substantial economic benefits for African countries. These benefits include higher income arising from increased efficiency and productivity from improved resource allocation, higher cross-border investment flows, and technology transfers. Besides lowering import tariffs, to ensure these benefits, African countries will need reduce other trade barriers by making more efficient their customs procedures, reducing their wide infrastructure gaps, and improving their business climates. At the same time, policy measures should be taken to mitigate the differential impact of trade liberalization on certain groups as resources are reallocated in the economy and activities migrate to locations with comparatively lower costs.
Launched and co-ordinated by the OECD, the International Collaborative Initiative on Trade and Employment (ICITE) is a two-year old joint undertaking of ten international organisations. This book brings together some of the results of ICITE's research.
Africa’s Development Dynamics uses lessons learned in the continent’s five regions – Central, East, North, Southern and West Africa – to develop policy recommendations and share good practices. Drawing on the most recent statistics, this analysis of development dynamics attempts to help African leaders reach the targets of the African Union’s Agenda 2063 at all levels: continental, regional, national and local.
Over the past decade, four major developments in global economic integration have shaped trade policy and the economic performance of countries within the Middle East and North Africa region: the emergence of global supply chains, the growth of trade in services, the rise of China and India as major international trading powers, and regional integration. These developments, along with the labor and natural resource endowments of particular countries (some are resource-poor but labor-abundant, some resource-rich and labor-abundant, and some resource-rich and labor-importing), have influenced export diversification outcomes across the region. Yet these countries may not be taking full advantage of all of the opportunities the four new trends offer to them. 'Trade Competitiveness of the Middle East and North Africa: Policies for Export Diversification' examines the region's trade policy agendas and their results by focusing on the countries' response to these four key developments in international trade. As the region recovers from the global financial and economic crises, the book identifies reforms that could allow countries to further strengthen global production networks, benefit more from trade in services, better compete in external markets to face the rise of China and India, and reach the full potential of regional integration. If thoroughly implemented, especially by oil exporters, all of these reforms could help boost growth and job creation in the region.
Africa welcomes business investment and offers some of the world's highest returns and impacts Africa has tremendous economic potential and offers rewarding opportunities for global businesses looking for new markets and long-term investments with favorable returns. Africa has been one of the world's fastest-growing regions over the past decade, and by 2030 will be home to nearly 1.7 billion people and an estimated $6.7 trillion worth of consumer and business spending. Increased political stability in recent years and improving regional integration are making market access easier, and business expansion will generate jobs for women and youth, who represent the vast majority of the population. Current economic growth and poverty-alleviation efforts mean that more than 43 percent of the continent's people will reach middle- or upper-class status by 2030. Unlocking Africa's Business Potential examines business opportunities in the eight sectors with the highest potential returns on private investment—the same sectors that will foster economic growth and diversification, job creation, and improved general welfare. These sectors include: consumer markets, agriculture and agriprocessing, information and communication technology, manufacturing, oil and gas, tourism, banking, and infrastructure and construction. The book's analysis of these sectors is based on case studies that identify specific opportunities for investment and growth, along with long-term market projections to inform decision-making. The book identifies potential risks to business and offers mitigation strategies. It also provides policymakers with solutions to attract new business investments, including how to remove barriers to business and accelerate development of the private sector.
With this book, the author offers a personal look at some of the landmark policies, people, and institutions that have shaped Africa's post-independence history - and will continue to shape its future. It is a true inside account - told from a very personal perspective - of the evolution of African development over the last five decades.
Informal cross-border trade (ICBT) represents a prominent phenomenon in Africa. Several studies suggest that for certain products and countries, the value of informal trade may meet or even exceed the value of formal trade. This paper provides a review of existing efforts to measure informal trade. We list 18 initiatives aimed at measuring ICBT in Africa. The paper also summarizes discussions conducted with many stakeholders in Africa between December 2016 and May 2018 regarding the measurement, the determinants, and the implications of ICBT. The methodologies used to measure ICBT in Africa differ widely, but they do confirm that informal trade in Africa is both sizeable and volatile. Both evidence on the determinants of ICBT and discussions with stakeholders suggest that policies should aim to reduce the existing costs associated with formal trade and provide positive incentives for traders and producers to move into the formal economy in order to avoid the loss of economic potential stemming from informal trade.
Sub-Saharan Africa's turnaround over the past couple of decades has been dramatic. After many years in decline, the continent's economy picked up in the mid-1990s. Along with this macroeconomic growth, people became healthier, many more youngsters attended schools, and the rate of extreme poverty declined from 54 percent in 1990 to 41 percent in 2015. Political and social freedoms expanded, and gender equality advanced. Conflict in the region also subsided, although it still claims thousands of civilian lives in some countries and still drives pressing numbers of displaced persons. Despite Africa’s widespread economic and social welfare accomplishments, the region’s challenges remain daunting: Economic growth has slowed in recent years. Poverty rates in many countries are the highest in the world. And notably, the number of poor in Africa is rising because of population growth. From a global perspective, the biggest concentration of poverty has shifted from South Asia to Africa. Accelerating Poverty Reduction in Africa explores critical policy entry points to address the demographic, societal, and political drivers of poverty; improve income-earning opportunities both on and off the farm; and better mobilize resources for the poor. It looks beyond macroeconomic stability and growth—critical yet insufficient components of these objectives—to ask what more could be done and where policy makers should focus their attention to speed up poverty reduction. The pro-poor policy agenda advanced in this volume requires not only economic growth where the poor work and live, but also mitigation of the many risks to which African households are exposed. As such, this report takes a "jobs" lens to its task. It focuses squarely on the productivity and livelihoods of the poor and vulnerable—that is, what it will take to increase their earnings. Finally, it presents a road map for financing the poverty and development agenda.
About the publication South Africa’s foreign policy makers are facing a substantial challenge. From the advent of the democratic era in 1994 through to the early 2000s, South Africa was a highly respected actor in international affairs with a number of impressive accomplishments in the areas of global governance, peacekeeping and international norm entrepreneurship. However, since that time, the country’s international standing has declined. The value based and innovative foreign policy that earned the early post-apartheid South African government such great international respect has been replaced by a more transactional and tactically driven approach to international affairs. The country’s position as Africa’s leading economy and voice in international affairs is increasingly being challenged by other African states. This book explores how South Africa can develop a foreign policy strategy that is appropriate to the uncertain times in which we live and that both helps the country address its overwhelming domestic challenges of poverty, inequality and unemployment and regain its former high international reputation. The contributors to this book offer analyses and proposals for developing such a strategy within the context of the country’s constitutional order and institutional constraints and that addresses the diverse and complex global and regional aspects of the country’s international relations. Endorsements: “In this valuable book – which should be on every diplomat’s bookshelf - some of SA’s foremost experts offer the government frank and compelling advice on how to conduct a much better foreign policy over the next decade. … The authors challenge Pretoria to muster all the country’s assets and skills – and not just those of the ruling party – to pursue only the most important foreign policy goals. And to be guided always by the lodestar of the Constitution.” Peter Fabricius, Foreign Policy Analyst, former Foreign Affairs Editor at Independent Newspapers. “In this one-of-a-kind book of twelve chapters by emerging and experienced scholars, the authors probe into factors shaping South African foreign policy, lessons learned and the future strategy of the country’s foreign policy in an ever-changing world. A compelling read for policy makers and scholars.” Ambassador Prof Iqbal Jhazbhay, University of South Africa, Member of the ANC’s N.E.C. International Relations Sub-Committee & former SA Ambassador to Eritrea “This volume deserves to become a go-to classic on South African foreign policy. Its in-depth analysis will appeal to established experts in this area; its breadth will engage newcomers; its insights will be useful to scholars and practitioners alike.” Professor Amrita Narlikar, President, German Institute for Global and Area Studies (GIGA) “This book offers compelling insights on South Africa’s foreign policy ... These varied pieces provide textured and critical perspectives that may help open up an avenue to re-imagine South Africa’s foreign policy afresh in the post-Zuma years. It is a compendium that should appeal to scholars of international relations, practitioners of foreign policy, and the broader policy community.” Professor Mzukiso Qobo, Head, School of Governance, University of the Witwatersrand “This nuanced and richly detailed volume offers the reader superb analyses of South Africa’s foreign policy ... The authors’ contributions ... present both theoretical considerations and specific policy recommendations, which make the book highly useful for both scholars and policy makers ... Each chapter is thus certain to significantly contribute to promoting the public debate about South Africa’s place in the world.” Professor Oliver Stuenkel, Fundação Getulio Vargas (FGV) Table of Contents ACKNOWLEDGMENTS CONTRIBUTORS Defining a South African foreign policy for the 2020s: Challenges, constraints and opportunities by Daniel D. Bradlow, Elizabeth Sidiropoulos & Luanda Mpungose Foreign policy under the Constitution by Jonathan Klaaren & Daiyaan Halim The courts and foreign policy powers by Nicole Fritz Overcoming bureaucratic and institutional challenges in South African foreign policy making by Arina Muresan & Francis Kornegay South Africa’s security interests in Africa: Recommendations for the 2020s by Aditi Lalbahadur & Anthoni van Nieuwkerk South Africa’s peace and security interests beyond the continent by Garth Le Pere & Lisa Otto Regional integration and industrial development in Southern Africa: Where does South Africa stand? by Maria Nkhonjera & Simon Roberts South Africa and African continental economic integration in the 2020s by Lumkile Mondi Negotiating climate change in an increasingly uncertain global landscape: Is there light at the end of the tunnel? by Ellen Davies, Saliem Fakir & Melisha Nagiah Reforming the institutions of global economic governance and South Africa by Cleo Rose-Innes Challenges and opportunities for non-traditional diplomacy by Fritz Nganje & Letlhogonolo Letshele Lessons learned and the path forward by Daniel Bradlow, Elizabeth Sidiropoulos & AnaSofia Bizos APPENDIX INDEX
