Vice President Dr. Mahamudu Bawumia
VICE PRESIDENT Dr. Mahamadu Bawumia has noted that the COVID-19 pandemic and protectionist interventions by major suppliers to Africa is a wake-up call for African nations to co-operate more in building a self-sustaining continent.
The Vice President, who was speaking at the Ghana International Petroleum Conference 2021 held virtually yesterday, said, “While national refineries may be commercially unsustainable in some cases, we should be co-operating in the development of regional assets including refineries and logistical assets to achieve the economies of scale required for commercial viability. This drives productivity and puts our able youth to work, which in turn preserves and enriches their dignity.”
According to him, “We are at an economic crossroads; one that needs teamwork to achieve the transformation of our economies for the betterment and sustainability of our people. With all our natural and human resources endowment, we risk an economic catastrophe with many of our teeming youth unemployed and angry if we fail to harness them productively to accelerate growth. That is our first worry.
He continued, “The second issue, whether we can use trade to accelerate growth of the continent. We trade about 85% with the world and just 15% with ourselves. This is in sharp contrast with trade amongst the EU at 67%, Asia at 61% and 47% in the Americas. This situation must change if we are truly committed to Africa’s economic transformation.
Commenting on the theme for the meeting, “Towards the success of AfCFTA in the petroleum sector”, he said Africa had considerable mineral, oil and gas resources that could help accelerate growth if used strategically, adding that Africa was home to 30% of the world’s mineral reserves.
“Broken down, Africa is responsible for the annual production of 9.6% of crude oil, 80% of platinum, 77% of cobalt, 51% of manganese, 46% of diamonds, 39% of Chromium and 22% of gold. We also have 13% of the global population on a continent with 60% of the global arable land. With 60% of our population below 25 years of age, Africa is the most youthful continent and needs urgent economic transformation to sustain its people.”
He said AfCFTA thus provided industry with a perfect opportunity to contribute towards the realisation of a first world Africa.
“AfCFTA is a decision of the Authority of the Heads of States of Africa, but its success depends on the work of industry and the collaboration between industry and bureaucrats at the implementation level. It is for this reason that I find the Ghipcon 2021 theme very relevant and important towards the success of AfCFTA in the petroleum sector,” he mentioned.
AfCFTA is set to become the largest Free Trade Area in the world with a market of 1.2 billion Africans. It is expected that Africa’s combined GDP of US$2.5 trillion will reach US$29 trillion by 2050 riding on the back of AfCFTA and an expansion in intra-Africa trade from its very low base of 15% to 52%.
BY Samuel Boadi