The “linked” economies of Africa are about to boost the prosperity of the continent

The “linked” economies of Africa are about to boost the prosperity of the continent
The “linked” economies of Africa are about to boost the prosperity of the continent

“We are at a fundamental moment, one that marks a deep change of seeing these nations as isolated and limited by geography to recognize them as dynamic economies linked to the land in the heart of the socio -economic resurgence of Africa,” said Samuel Doe, resident representative of the United Nations Development Program (UNDP) in Ethiopia.

A new UNDP position document, the economies linked to the land of Africa: roads towards prosperity and development, explores the new narrative for the African LLDC, “rewriting the history of a geographical limitation to a strategic advantage.”

Mr. Doe, speaking on behalf of the UNDP in Africa, presented the document at a press conference on the margins of the third UN Conference on LLDCS (LLDC3), which has been underway since Tuesday in Awaza, Turkmenistan.

“For decades, the LLDC of Africa have been defined by their lack of direct access to the sea, often perceived as a disadvantage that limits trade, growth and development,” he said.

“Today, the LLDC of Africa are taking advantage of their strategic centrality and regional connectivity to become vital centers of economic activity, trade and innovation.”

He cited, among others, the Kigali Logistics Platform of 130,000 hectares of Rwanda, a bustling regional center, which connects Uganda, the Democratic Republic of the Congo and Burundi with the coastal economies of Kenya and Tanzania.

In addition, Ethiopia facilitates crucial trade routes from South Sudan to Djibouti, including the shortening of rail transport by 72 hours to 12 hours, and takes advantage of its national airline, emerging as a vital connector of global air transport that unites Africa with international markets.

Meanwhile, Botswana, Malawi, Zambia and Zimbabwe anchor the northern crucial corridor, which links southern Africa with broader continental markets.

Worldwide, LLDCs represent seven percent of the world’s population, but contribute to only 1.1 percent of world trade.

The UNDP indicates that, although the contribution of the African LLDCs to global trade can be minimal, they supply regional and continental markets strategic goods and services, including diamonds, copper, gold, coffee, sugar, as well as textiles and clothing.

‘Earth line changes the narrative’

A critical element of the change that takes place in the continent is the African continental trade area (AFCFTA), which entered into force in January 2021 and represents the world’s largest free trade area with a market of 1.2 billion people.

The majority of African LLDCs are members of the AFCFTA, which is already reducing commercial barriers, unlocking great opportunities for LLDCs to actively participate and benefit from intra -African and global trade, according to UNDP.

“The narrative turns on the ground: the internal countries become bridges, not barriers. With AFCFTA, the LLDCs can turn geography into a competitive advantage: goods, services and data more quickly and more affordable in Africa and beyond,” said Mr. Doe.

The change also requires coordinated policies, as well as taking advantage of innovation, inclusive governance, resilience and financing to boost sustainable and inclusive growth.

The document also cites digital connectivity as a “transformative route” so that African LLDCs transcend geographical limitations and establish direct links with regional and global markets.

According to the facts and figures of the International Telecommunications Union (UIT) of 2024, 39 percent of the population in LLDCS is online, with Internet access in African LLDC that reach up to 20 percent.

The current digital, although challenging panorama shows that African LLDCs are positioned to take advantage of innovative connectivity solutions that avoid traditional dependencies in coastal neighboring countries, according to the UNDP document. Despite the LLDC, they continue to depend on neighboring coastal countries for access to the underwater cable.

“We are also worried that developing countries without coastline do not have easy access to submarine cables,” Luckyson Zavazava, director of the IU Telecommunications Development Office in Awaza, told Cosmas journalists.

“And for those who are doubly coastal, it is a major challenge because you must have good relations with your neighbors so you can communicate.”

Find all our coverage in LLDC3 here.

Source link