ICSOE Meeting in Yaoundé Drives AfCFTA and Economic Diversification in Central and Eastern Africa

Eastern Africa outperformed the global growth rate with a 6.3% increase, while Central Africa achieved 3.3% growth, exceeding the global average of 2.7%.

The Intergovernmental Committee of Senior Officials and Experts (ICSOE), organized by the UN Economic Commission for Africa (ECA), gathered for the third time in Yaoundé, Cameroon, from 15 to 18 October 2024. The meeting brought together around 150 decision-makers and economic experts from 21 African countries to discuss trade-related measures and innovative solutions to drive economic diversification and the African Continental Free Trade Area (AfCFTA).

Partnering with the Government of Cameroon, the ICSOE session focused on creating policies to promote inclusive growth, with a strong emphasis on innovation as a key determinant of productivity growth in the Fourth Industrial Revolution era.

ECA Deputy Executive Secretary Hanan Morsy highlighted the United Nations Sustainable Development Goal (SDG) 9, which emphasizes building resilient infrastructure and promoting industrialization through innovation. She pointed out that most African countries, particularly in Central and Eastern Africa, have Research and Development (R&D) spending of less than 0.5% of GDP—well below the global average of 2.5%.

Cameroon's Minister of Economy, Planning and Regional Development, Alamine Ousmane Mey, reiterated the importance of supporting African states in creating ecosystems that foster innovation. He emphasized the urgent need to promote blue and green economies alongside industrialization and economic diversification, vital for the region’s long-term growth.

Macroeconomic Resilience and Growth in Central and Eastern Africa

Despite significant challenges such as high debt levels, post-pandemic inflation, and the impacts of climate change, the ECA projected strong economic growth in 2023 for both Central and Eastern Africa. Eastern Africa outperformed the global growth rate with a 6.3% increase, while Central Africa achieved 3.3% growth, exceeding the global average of 2.7%.

Looking ahead to 2024, the region is expected to continue its resilience, with Eastern Africa leading the way with 5.8% real GDP growth and Central Africa seeing 3.5% growth. However, the challenge remains to ensure that these growth rates lead to sustainable economic transformation.

ICSOE: A Platform for Solutions and Innovation

The ICSOE meeting provided a platform to advance key economic agendas in Central and Eastern Africa, particularly the need to accelerate economic diversification. Special emphasis was placed on enhancing Research and Innovation to foster sustainable growth. Participants discussed how the AfCFTA can become a catalyst for inclusive development, especially when policies target women, young traders, and small businesses.

The meeting also explored innovative financing mechanisms to enhance liquidity for African countries, including debt-for-nature swaps, green and blue bonds, and carbon markets to establish fair carbon pricing.

The ECA operates through two key Subregional Offices in Central and Eastern Africa. The Subregional Office for Central Africa is located in Yaoundé, Cameroon, and covers seven countries: Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, Gabon, and Sao Tome and Principe. Its services extend to other ECCAS member states.

The Subregional Office for Eastern Africa is based in Kigali, Rwanda, and covers 14 countries, including Burundi, Kenya, Ethiopia, and Tanzania. Both offices aim to foster regional integration, economic diversification, and development within their respective subregions.