BY AGENCIES
THE AU has adopted an ambitious plan to create a continental free trade area by 2017 and has estimated that the cost of developing Africa's infrastructure would be about $60-billion over the next 10 years.
At the end of its 18th summit in Addis Ababa, Ethiopia, yesterday, the AU said that the Continental Free Trade Area would strengthen intra-African trade and deepen market integration to "contribute significantly to sustainable economic growth, employment generation, poverty reduction, inflow of foreign direct investment, industrial development and better integration of the continent into the global economy".
The AU wants to create the free trade area in three steps.
The first would be to finalise the tripartite agreement in the East African Community, the Common Market for Eastern and Southern Africa, and the Southern African Development Community by 2014.
This would be followed by the encouragement of other trade treaties in emulation of the tripartite agreement between 2012 and 2014.
The final step would be to consolidate all the regional trading entities between 2015 and 2016.
Xinhua, the official Chinese government press agency, reported that the AU emphasised the need for its member states to increase spending on infrastructure, implement major projects in hydroelectricity, oil refining and gas pipelines, accelerate the construction of missing transport links and modernise railways, and increase the capacity of ports.
"African countries should develop new and renewable energy resources to provide clean, reliable and affordable energy, as well as nuclear energy for peaceful use," the AU said.
The summit recommended developing regional and continental broadband networks and submarine cables to promote Africa's digital economy.
President Jacob Zuma and Trade and Industry Minister Rob Davies have encouraged the development of trade between African states. Both have pointed out that less than 10% of Africa's trade is between its states.
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