UN report urges bold reforms to boost Africa's economic resilience

ABIDJAN - The United Nations Trade and Development (UNCTAD) released its 2024 Economic Development in Africa Report on Monday in Abidjan, economic capital of Cote d'Ivoire, outlining strategies to transform the continent's challenges into opportunities through policy reforms, infrastructure investment, and enhanced regional trade integration.

UNCTAD Secretary-General Rebeca Grynspan, alongside Ivorian Minister of Commerce Souleymane Diarrassouba, presented the report, emphasizing Africa's vulnerability to global shocks due to commodity dependence and infrastructure gaps.

Over half of African nations rely on oil, gas, or minerals for at least 60 percent of export earnings, exposing them to volatile global markets. Meanwhile, trade costs in Africa remain 50 percent higher than the global average due to insufficient transport, energy, and digital infrastructure.

Grynspan highlighted the critical role of the African Continental Free Trade Area (AfCFTA), which could create a 3.4 trillion US dollars market. "By implementing bold reforms, targeted investments, and fully operationalizing AfCFTA, Africa can emerge stronger, more resilient, and competitive," she said.

The report recommends diversifying exports, boosting intra-African trade, supporting small and medium-sized enterprises (SMEs) -- which provide 80 percent of Africa's jobs-and establishing early warning systems for trade risks.

Grynspan, who chose to deliver the report in Cote d'Ivoire, praised the country's economic resilience. She noted that Cote d'Ivoire's performance and growth are the meaning of regional stability. Today, the country "accounts alone for up to 40 percent of GDP growth in West Africa and up to 30 percent of foreign investment stocks."

Today, the country "contributes 40 percent of West Africa's GDP growth and attracts 30 percent of foreign investments in the region," she said, attributing its success to public-private partnerships, infrastructure development, and a robust National Development Plan (PND).

Ivorian Prime Minister Robert Beugre Mambe, who received the report during a high-level dialogue on national resilience, emphasized the private sector's role as the "engine" of the economy, which accounts for 75 percent of investments and 26 percent of GDP. He outlined government measures to support businesses, including streamlined logistics, expanded digital connectivity, and dedicated funding mechanisms.

"What we must remember about our resilience is our ability to plan development, to control it and to constantly question ourselves," added the prime minister.

The report underscores the urgency of addressing Africa's 194 billion US dollars annual infrastructure deficit. Key proposals include tax incentives for industrialization, regional investment funds, and trade finance mechanisms for crisis-affected firms.

"Africa's future lies in regional integration," Grynspan said, urging accelerated AfCFTA implementation. With strategic reforms, the continent could reduce external dependency, stabilize revenue streams, and foster inclusive growth.

As global headwinds persist, UNCTAD's blueprint offers a roadmap for African nations to harness their collective potential while drawing inspiration from success stories like Cote d'Ivoire.

"The experience of Cote d'Ivoire is an inspiration for many other countries that are developing in the world," noted Grynspan.