Trade and Development Board

GROUP OF 77
GENEVA

STATEMENT ON BEHALF OF THE GROUP OF 77 AND CHINA BY HIS EXCELLENCY MR. CHAD BLACKMAN, AMBASSADOR AND PERMANENT REPRESENTATIVE OF BARBADOS, AT THE 69TH REGULAR SESSION OF THE TRADE AND DEVELOPMENT BOARD: ITEM 5 - ECONOMIC DEVELOPMENT IN AFRICA: REAPING THE POTENTIAL BENEFITS OF THE AFRICAN CONTINENTAL FREE TRADE AREA FOR INCLUSIVE GROWTH
(Geneva, 20 June 2022)

President of the Trade and Development Board, Ambassador Hasans,
Secretary-General of UNCTAD, Ms. Rebeca Grynspan,
Director of the Division on Africa, LDCs and Special Programmes, Mr. Paul Akiwumi
Excellencies,
Distinguished delegates,
Ladies and gentlemen,

1. The Group of 77 and China would like to start by thanking the Secretary-General of UNCTAD and the Director of the Division on Africa, LDCs and Special Programmes for their comprehensive remarks on the 2021 iteration of the Economic Development in Africa Report (EDAR) themed, "Reaping the potential benefits of the African Continental Free Trade Area (AfCFTA) for inclusive growth".

2. Our Group is appreciative of the aims of the report, that is, to equip Governments in Africa and development partners with the knowledge of how the AfCFTA can be beneficial for inclusive growth, as well as how complementary policies are necessary to make the Free Trade Area inclusive across and within countries in Africa. Indeed, UNCTAD's role in integrating countries beneficially into the global economy continues to be one of the key objectives of development that our Group continues to espouse as one of its main goals.

3. Before we move on to more specific comments about the Report, we would like to commend African countries, all of whom are G77 members, for the political will and determination that they have shown in advancing towards the AfCFTA. As those nations that benefitted the most from globalization continue to look inward and sometimes embrace protectionism, it is paramount that developing countries exploit the full potential of South-South trade without abandoning the fight for an international economic system that duly reflects, and takes into account our recent history.

3. Turning back to the report, the EDAR flags the need to reduce intra-African tariff barriers and non-tariff barriers, while increasing productive capacities, in order to realize the export potential of Africa. It is paradoxical that the EDAR would need to flag this issue, as in today's world, policy makers in developing countries and in our development partners should have internalised the fact that trade liberalization in itself is not sufficient for development gains to be attained in the absence of effective public policy interventions for the development of productive capacities. Yet, this is a reality that many would want to ignore and so we are pleased to see it reaffirmed in the 2021 edition of the EDAR.

4. As highlighted in the Report, another transformational ambition of the AfCFTA is the need for a level playing field for African business and workers. This includes building skills and addressing disparities such as inequality and poverty, creating a conducive environment, enhancing cooperation and promoting growth. Our Group would like to emphasize the importance of such a comprehensive roadmap not only for the African continent but for developing countries as a whole.

5. We take note of the trends reflected by the Report in making its analysis, including the high levels of growth that the African continent experienced up to 2010 partly due to improve macroeconomic policies of the continent, followed by slowdown since then. Indeed, the fact that the report flags what is described as "the opposite of an inclusive growth process" is a worrying trend in the continent that continues to host the majority of the world's poor, amid high levels of inequality. The Group of 77 and China therefore calls on UNCTAD to continue to support African countries in reversing this trend, while also calling on development partners and the international community to step up their assistance.

6. The pandemic came at a moment of already sluggish economic performance for Africa and for development countries, only to make the situation worse. Today, without having been able to shed the impacts of the pandemic, our countries are faced with the additional financial, energy and food security burdens imposed upon by geopolitical factors beyond our control. Tapping into the current export potential of US$21.9 billion and working towards realizing the possible additional US$9.2 billion export potential in Africa would go a long way towards realizing the collective self-reliance of the African continent.

7. We therefore would like to, once again, take note of the analysis and recommendations of the EDAR 2021, and to thank the team of Director Akiwumi for another insightful report. The Report offers innovative analytical perspectives, relevant for countries to harnesses the potential of the AfCFTA to progress key development issues while embodying the imperative, "leave no one behind". We would also like to highlight the links of some of the findings with other areas of work of UNCTAD, including digitalization, competition, gender, and investment, and invite the Secretariat to further the integrated cross-divisional analysis of the issues raised by the EDAR 2021.

8. Our Group encourages policy makers to make use of the EDAR 2021 as a toolbox in assessing the inclusiveness of trade patterns and how trade agreements can promote the economic participation of marginalized groups in labour-intensive and high value added sectors. In so doing, we look forward to the future work announced on assessing the domestic income distribution effects of the AfCFTA.

9. Before we close, the Group of 77 and China looks forward to the prospects that the AfCFTA present in diversifying the economy and strengthening resilience of African countries and their trading partners. The gains achieved may not be immediate, but they remain imperative in facing development challenges now, and in the decades to come.

I thank you, Mister President.