The AfCFTA Impact on Africa’s Extractive Industries
The African Continental Free Trade Area (AfCFTA) represents a groundbreaking opportunity to reshape Africa’s economic landscape, especially within the extractive industries like mining, oil, gas, and other mineral resources. These sectors are critical to the GDP, foreign exchange earnings, and employment across many African nations. However, extractive industries often face challenges ranging from limited value addition to infrastructure constraints-issues that AfCFTA could help alleviate.
- Development of Regional Value Chains
Historically, African countries have primarily exported raw materials with minimal local processing. The AfCFTA could provide the much-needed boost for regional value chains in areas like oil refining, mineral beneficiation, and energy production, driven by a more cohesive continental market. By incentivizing the processing and refining of raw materials within Africa, the AfCFTA can accelerate industrialization, increase job creation, and foster economic resilience across the continent.