World Bank’s Chief Economist for Africa World Bank, Albert Zeufack, has urged African governments to ratify and implement the Continental Free Trade Agreement (CFTA) to reduce trade volatility and spur African economic growth.
He urged African countries to invest in digital infrastructure to boost access to broad band connectivity, adding that effective implementation of the free trade policy would strengthen regional value chain for enhanced development.
Mr Zeufack said this on Monday at a video conference at the launch of this year’s African’s Pulse report, a bi-annual analysis of issues shaping Africa’s economic future.
The report showed that growth in sub-Saharan Africa was downgraded to 2.3 percent for 2018, down from 2.5 percent in 2017.
The report attributed low growth to domestic macroeconomic instability, including poorly managed debt, inflation, and deficits; political and regulatory uncertainty; and fragility that were having visible negative impacts on some African economies.
The report found out that fragility in a handful of countries was costing Sub-Saharan Africa over half a percentage point of growth per year, which adds up to 2.6 percentage points over five years.
“The drivers of fragility have evolved over time, and so too must the solutions,” said Cesar Calderon, Lead Economist and Lead author of the report.