Youth In Action

The future of Trade & Industrialization

The African continent continues to face economic uncertainty and rising youth unemployment - a particularly significant problem for young females in the North African region. The African Development Bank reported that the average unemployment rate for Sub-Saharan Africa on average, stands above 50% (Eswatini 56%, Botswana 36%, Namibia 49% or South Africa 54%). Could the African Continental Free Trade Agreement (AfCFTA ) be the answer to Africa’s youth employment crisis?

The AfCFTA was brokered by the African Union (AU) on March 21st 2018, and signed by 44 of its 55 member states in Kigali, Rwanda. The agreement aims to be a means of economic acceleration and development, by reducing tariffs among members while simultaneously covering policy around trade facilitation and services, as well as reducing technical barriers to trade. If implemented successfully, AfCFTA foresees the agreement to bring together 1.3 billion people in a $3.4 trillion economic bloc.

Currently 54 states with the exception of Eritrea have submitted tariff reduction schedules. Members must phase out 90% of tariff lines - over five years for more advanced economies or 10 years for less developed nations. Another 7% considered sensitive will get more time, while 3% will be allowed to be placed on an exclusion list.

It is then essential that the AfCFTA incorporates a policy that guarantees not just the involvement of women and youth but facilitates it. Small businesses owned by women in Africa account for close to 60 per cent of Africa's GDP, while creating about 450 million jobs.

Additionally, young Africans are at the cutting edge of technological advancements, in Lagos or Kigali. African youth are developing the latest software to drive ecommerce. This article explores the voices of young men and women around Africa on the AfCFTA agreement, what it may mean for them, as well as the future of Trade and Industrialization in Africa.

Source material:

https://data.worldbank.org/indicator/SL.UEM.1524.ZS?locations=ZG-M2-MAOE-NA&name_desc=false https://www.un.org/osaa/news/what-afcfta-holds-women-and-youths-2022 https://african.business/2022/02/trade-investment/what-you-need-to-knowabout-the-african-continental-free-trade-area/