Proposed Full Implementation of the African Continental Free Trade Area

TLDR

• The prolonged disruption of shipping through the Strait of Hormuz has highlighted Africa's economic vulnerability to geopolitical shocks.
• Countries like Tanzania, along with Ethiopia, Kenya, Mozambique, South Africa, and Uganda, are heavily dependent on petroleum imports from the Middle East, which has led to elevated fuel prices.
• Africa's ambition for structural transformation, moving workers from low-productivity jobs to more productive roles in manufacturing and services, is at risk due to geopolitical rivalry and fragmented supply chains.
• Historically, Africa has not fully participated in the export manufacturing wave that benefited East Asia from the 1960s onward, resulting in manufacturing accounting for only about 10% of GDP in sub-Saharan Africa.
• To achieve industrialization, Africa must focus on larger markets, reliable electricity, leveraging comparative advantages, and enhancing agricultural productivity.