Ruto hails chambers for fronting trade integration especially in Africa

AFRICA has what it takes to become a major player in global trade and a driver of worldwide economic growth.

Speaking at the opening ceremony of the World Chambers Federation (WCF) Africa Summit in Nairobi, President William Ruto said that the African Continental Free Trade Area (AfCFTA), if fully implemented alongside bold policies could greatly enhance competitiveness.

Citing a report on the Economic Development in Africa released in February by the United Nations Conference on Trade and Development (UNCTAD), Ruto said that intra-African trade can grow by 53 per cent, lift 50 million people out of poverty, and create 14 million jobs if concrete solutions such as tax incentives, low-interest loans to support industrialization, and regional funds to manage trade risks are put in place.

He regretted that even though the continent has a combined Gross Domestic Product (GDP) of $3.4 trillion, 1.3 billion market with the youngest population globally averaging 19 years, poor infrastructure in transport, energy, and digital connectivity raises trade costs by 50 per cent compared to the global average of 22 per cent, contributing to the continent’s low intra-African trade rate of just 16 per cent.

Ruto emphasised the importance of Chambers of Commerce in pushing for trade integration especially in Africa.

“Chambers of Commerce are indispensable because they bring a proactive and a solution-oriented perspective thus the KNCCI and World Chamber Federation serve as vital bridges between government and enterprise helping businesses navigate risks, unlock opportunities and expand into global markets.’’

He revealed that since Kenya fully embraced intra-Africa trade in 2022, at least 41 per cent of the country’s exports are destined for African countries.

“Our manufacturers and tech startups are expanding across the region demonstrating our strong conviction that Kenya’s and Africa’s fortune lies in intra-trade,” Ruto said.