A strong policy framework is key to successful intra-African trade – IMF
The International Monetary Fund has said that a sound policy framework that provides macroeconomic stability and fosters a conducive business environment is critical to the success of intra-African trade.
This was featured in an IMF report titled "Trade Integration in Africa: Unlocking the Continent's Potential in a Changing World."
According to the report, empirical analysis reveals that a reform program to implement the AfCFTA plans to reduce both tariffs and non-tariff measures, when combined with substantial improvements in the trading environment, has the potential to significantly boost Africa's intraregional and overall trade in goods.
The report notes that a strengthening of the overall trading environment would also boost trade in services, which would be further enhanced by the liberalization of trade in services.
He said implementing the AfCFTA and improving the business environment would also support integration into GVCs.
He added that it will provide opportunities to strengthen manufacturing and realize economies of scale, promote economic diversification, and generate improved economic dynamism.
It read in part: "Furthermore, progress towards the goal of making the AfCFTA a comprehensive trade agreement, including through regulatory alignment on the supply of goods and services, would open up additional business opportunities.
“All of these measures should be part of broader efforts to overcome long-standing obstacles to integration, such as the use of import tariffs to substitute for imports or as a substantial source of revenue. These efforts must be based on a sound policy framework that ensures macroeconomic stability and promotes a favorable business environment. »
To establish the AfCFTA as a comprehensive trade agreement, the IMF said policymakers should both complete implementation of the milestones agreed under Phase I and move forward in negotiating and implementing Phase II of the agreement.
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The International Monetary Fund has said that a sound policy framework that provides macroeconomic stability and fosters a conducive business environment is critical to the success of intra-African trade.
This was featured in an IMF report titled "Trade Integration in Africa: Unlocking the Continent's Potential in a Changing World."
According to the report, empirical analysis reveals that a reform program to implement the AfCFTA plans to reduce both tariffs and non-tariff measures, when combined with substantial improvements in the trading environment, has the potential to significantly boost Africa's intraregional and overall trade in goods.
The report notes that a strengthening of the overall trading environment would also boost trade in services, which would be further enhanced by the liberalization of trade in services.
He said implementing the AfCFTA and improving the business environment would also support integration into GVCs.
He added that it will provide opportunities to strengthen manufacturing and realize economies of scale, promote economic diversification, and generate improved economic dynamism.
It read in part: "Furthermore, progress towards the goal of making the AfCFTA a comprehensive trade agreement, including through regulatory alignment on the supply of goods and services, would open up additional business opportunities.
“All of these measures should be part of broader efforts to overcome long-standing obstacles to integration, such as the use of import tariffs to substitute for imports or as a substantial source of revenue. These efforts must be based on a sound policy framework that ensures macroeconomic stability and promotes a favorable business environment. »
To establish the AfCFTA as a comprehensive trade agreement, the IMF said policymakers should both complete implementation of the milestones agreed under Phase I and move forward in negotiating and implementing Phase II of the agreement.
Please share this story:
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