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She highlighted the potential of AFCFTAs to diversify Africa's economy and reduce their reliance on raw goods exports.
In his address to the ECA representative, Schwidrowski highlighted the fact that intra-African exports are more diverse compared to exports to non-African countries.
While Africa's economy continues to be resilient in the face of multiple shocks, including the pandemic, rising global inflation and debt distress, Schwidrowski warned that the continent needs to grow much faster. This requires an effective implementation of AFCFTA.
Africa's GDP is expected to grow by 3.8% in 2025 and 4.1% in 2026, with a growth rate that it believes is insufficient to advance sustainable development.
Schwidrowski said the major risks facing the African economy today include disruption in global trade policy, lower aid and increased economic and political fragmentation at the global level.
Inflation in Africa has declined, but prices remained higher than they did a few years ago.
She expressed concern about the low ratio of taxes and GDP in Africa and called on policymakers to strengthen efforts to strengthen domestic resource mobilization. Africa's total repayments tripled between 2010 and 2023.
“Africa is only limited as it's just under 15% of GDP. But the good news is that the country is making progress in closing loopholes, expanding its tax base, eliminating incentives and significantly reducing illegal financial flows with the help of developed economies,” she said.
She noted that efforts to expand alternative revenue streams are particularly necessary in light of declining official development aid and rapid reductions in bilateral loans from key partners like China.
