TUNIS: Prime Minister Mohamed Ghannouchi chaired, on Wednesday, the opening of the Fifth African Economic Conference on "Establishing an Action Plan for Africa's Economic Revitalisation and Long-term Growth," organised by the African Development Bank (AfDB) and the Economic Commission of United Nations for Africa (CEA).
The prime minister pointed out that "Africa has in a way resisted the crisis. Growth in 2009 was positive, at 2.5%, thanks to the vigorous domestic demand and the important support of the Continent's partners, at the head of which the African Development Bank."
He went on adding that, now, Africa has a recovery ability, with an expected growth of 4.5% for 2010 and 5.2% in 2011.
The Premier specified that the Continent is the least developed region of the planet, as it only contributes by 2.5% to the world wealth and 3.5% of international exports, despite the fact that its population stands presently at one billion people, i.e. 15% of world population.
Mr. Ghannouchi said that the African continent is not short of assets as, for instance, its population is young and dynamic, not to mention also the fact that it possesses important natural resources.
He pointed out that in order to make for the accumulated delays and improve the African populations' living standards to a significant level, the GDPs annual growth rate should be of 10% over long periods.
He specified that "this development should rely on a certain number of requirements: the first one being unquestionably setting up a system of an efficient economic governance; and the second one consisting in betting on youth and education.
He also said that investment in infrastructure is a key requirement, further elaborating that "an adequate infrastructure could add up to two percentage points of additional growth."
The prime minister called for developing stock markets which are also perceived as an important lever available to authorities to stimulate investment.
The Prime Minister stressed the importance of the efforts to be exerted to develop basic infrastructure in order to create the needed that would help the enterprise to invest.
"This also means," he insisted, "the magnitude of capitals to be mobilised, from the development institutions, African Development Bank, World Bank and others, to speed up preparation and financing of priority projects in this field."
Discussing the last requirement, i.e. the trade opening and integration of the African economies into the world economy, Mr. Mohamed Ghannouchi pointed out that the possibilities of intra-African trade and investment have not so far been made use of to the full.
The volume of trade exchanges among the African nations is below 10%, while that the Asian countries among themselves is of about 40%.
Besides, intra-African investment represents only 13%, while it stands at 30% among the Asian countries.
He argued that regional integration is a source of additional growth. "Tunisia's experience, in this field, is significant," he asserted, "the country is, in fact, since the beginning of 2008, in total free-trade zone with the European Union for the industrial products.
It is presently negotiating to extend the agreements concluded to the services. Tunisia is also part of the Great Arab Free-Trade Zone for the industrial and agricultural products and it signed free-trade agreements with Turkey, Morocco, Egypt, Jordan and with the European Countries' Free-Trade Association."
The prime minister reminded that several preferential agreements had been also concluded or are under talks, notably with Algeria, the West African Countries' Economic and Monetary Union, and those member countries of the Economic and Monetary Community of Central Africa.
The major lesson to be drawn is that openness improves competitiveness.
Agence Tunis Afrique Presse 2010
