Wamkele Mene, African Continental Free Trade Area Secretariat, said costs for trade finance, as well as infrastructure, transport and logistics, remained high. This is as the continent gears up to thrive in what is being called the ‘new economy’.
(Featured) AfCFTA Secretary-General Wamkele Mene said this was an important moment for South Africa to leverage the African Continental Free Trade Area and identify new markets to invest in. This follows the 30% tariff imposed by the US on SA products, which is scheduled for… pic.twitter.com/WGSzyCCAeJ
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Mene spoke at the World Economic Forum (WEF) in a session entitled “How can we unlock new sources of growth?” At Davos, Switzerland. The new economy is the transition from a manufacturing-based economy to a technology-driven economy.
World leaders from government, business and civil society will gather in Davos, Switzerland, this week for an annual conference themed “The Spirit of Dialogue.” #WEF2026 https://t.co/lZnnknKHRw
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As the continent scrambles to prepare for a “new economy,” infrastructure costs remain high, Mene said.
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Mene said the African Development Bank estimates that infrastructure development in Africa costs about $150 million a year.
He says now is a compelling time for the continent to accelerate market integration.
“Infrastructure costs are high, estimated by the African Development Bank Group (AfDB) at approximately $150 million per year. Transport and logistics costs remain high. So we have a lot of barriers. But in the wisdom of our leaders, they say this is not sustainable. We are a continent of 1.4 billion people, and we have a combined GDP of $1 billion. But unless we accelerate market integration, we will forever be a continent of potential, and we will never realize that potential,” Mene added.
President Julius Bio of the Republic of Sierra Leone has said the continent is not ready for a new economy.
“I think that whatever happens, we can only reap the benefits if we are ready before it happens and if we have people ready in terms of the necessary infrastructure and fit-for-purpose education to benefit from what is happening in a world with serious problems such as energy supply and connectivity. This continent is not completely ready,” Bio says.
Rachel Glennerster, director of the Center for Global Development, says investing in the education of Africa’s youth must be a key part of the continent’s growth strategy.
“Africa is going to be a continent full of young people, but to get that done we need to invest in education. We need to lower trade barriers to make sure the market is big enough for people to come in and take advantage of the benefits,” Glennerster said.
The WEF continues to take place in Davos, Switzerland, and this week brings together world leaders from government, business, civil society and academia to engage in forward-thinking discussions to address global issues and set priorities.
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