Pres. Taye calls for increased investment in industrialization, job creation to boost Africa’s global competitiveness

Addis Ababa, March 17, 2025 (FMC) – The FDRE President Taye Atsle-Se;assie stated that Ethiopia is fully committed to the implementation of the African Continental Free Trade Area and working alongside our African brothers and sisters to build a united, prosperous and resilient continent.

Speaking at the opening of the 57th Session of the Economic Commission for Africa: Conference of African Ministers of Finance, Planning, and Economic Development, the president stressed that while the vision of a unified African market is promising, its realization depends on immediate, coordinated efforts.

The conference, being held under the theme “Advancing the Implementation of the Agreement Establishing the African Continental Free Trade Area: Proposing Transformative Strategic Actions,” has brought together Africa’s leading economic policymakers, central bank governors, development partners, and private sector representatives to discuss ways to accelerate trade integration and drive industrialization across the continent.

In his remarks, Ethiopian President Taye Atske-Selassie has urged African nations to move beyond discussions and take decisive actions to implement the African Continental Free Trade Area (AfCFTA), emphasizing that Africa stands at a turning point for economic transformation.

On the occasion, President Taye noted that Africa has long aspired to boost intra-African trade, but real progress demands concrete actions. He identified two immediate priorities: first, ensuring that AfCFTA ratification translates into effective implementation through tariff concessions and investment-friendly measures, and second, establishing national AfCFTA implementation committees to enhance coordination at the country level.

He also emphasized the need for Africa to adopt transformative strategies to unlock AfCFTA’s full potential. He outlined five key areas that require urgent action, starting with infrastructure development to facilitate trade.

The President cited Ethiopia’s integrated connectivity with Djibouti—through railways, roads, fiber-optic networks, water pipelines, and electricity—as an example of how infrastructure can support cross-border trade. However, he noted that infrastructure alone is not enough and called for policy harmonization among African countries to remove bureaucratic trade barriers.

The president urged African governments to shift from exporting raw materials to value-added manufacturing to maximize trade benefits. He stressed that Africa can no longer afford to be a supplier of unprocessed commodities like coffee, cassava, and minerals, while other regions profit from their refinement.

He called for stronger investment in industrialization, regional value chains, and job creation to make Africa a competitive global trading partner.

Highlighting the need to empower African youth and women, he urged leaders to provide better access to finance, training, and digital market opportunities, particularly for small and medium-sized enterprises (SMEs). He praised Pan-African institutions like AfroChampions for supporting entrepreneurs but noted that they face challenges in securing funding and accessing digital markets.

He also stressed the importance of transparent and predictable regulations to attract investment. He called for clear intellectual property rights protections, fair competition laws, and streamlined bureaucratic processes to boost investor confidence and encourage cross-border business growth.

“Creating transparent and predictable regulatory frameworks is vital for attracting investment and fostering business confidence across borders. We must secure Intellectual property rights, ensure fair competition, and streamline bureaucratic processes.”

The president underscored that digital transformation must be a priority, stating that access to the digital economy is no longer a luxury but a necessity. He urged African governments to invest in digital literacy, e-commerce platforms, and ICT infrastructure to ensure that no African country is left behind in the global digital economy.

Reaffirming Ethiopia’s commitment to AfCFTA, he highlighted his country’s progress in trade facilitation and infrastructure development. Ethiopia has already submitted its tariff concessions and is preparing to launch pilot trade in goods under AfCFTA.

The country is also investing in regional transport corridors, including agreements with South Sudan and participation in the LAPSSET Corridor with Kenya, aimed at boosting regional trade and logistics networks.

Beyond transport, Ethiopia is expanding regional energy integration, exporting affordable renewable electricity to neighboring countries. The president described energy availability as a prerequisite for industrialization, stressing that closing Africa’s energy gap is critical for attracting investment and boosting productivity. He also highlighted Ethiopia’s focus on industrial parks and special economic zones, which are central to increasing value-added production and manufacturing.

President Taye warned against overreliance on external incentives, particularly in Africa’s textile sector, which he said has been weakened by short-term trade agreements that come with strategic conditions. He called on African countries to prioritize self-sufficiency and intra-African collaboration to create a sustainable industrial base.

He concluded his address by emphasizing that AfCFTA’s success will be measured not by agreements on paper, but by tangible progress on the ground. He urged African leaders to move from deliberation to action and take bold steps to turn AfCFTA into a real engine of economic transformation.

Before closing, he invited conference participants to visit key historical sites in Addis Ababa, including the Adwa Victory Memorial Museum and the newly renovated National Palace, which showcase Ethiopia’s and Africa’s legacy in the fight against colonialism and the founding of the African Union.

The ministerial session, which runs until March 18, will feature high-level policy dialogues, the launch of the Economic Report on Africa 2025, and discussions on trade-related infrastructure, digital inclusivity, and cross-border investments. The outcomes of the conference are expected to shape strategic policy actions that will drive AfCFTA’s implementation and fast-track Africa’s integration into the global economy.

By Mesafint Brlie