Despite its mineral wealth, Africa accounts for only 2.4% of global GDP — ECOWAS

Africa accounts for only 2.4% of global Gross Domestic Products (GDP), although the continent has approximately 30% of the earth’s remaining mineral resources, Economic Community of West African States (ECOWAS) revealed last week.

Despite Africa’s disproportionately low share of the global GDP, the continent has the largest reserves of precious metals with over 40% of the gold reserves, over 60% of cobalt and 90% of platinum reserves, said Professor Jonathan Aremu, a consultant to the ECOWAS Common Investment Market (ECIM), during a one-day workshop for journalists organized by AfCFTA in Abuja.

However, Aremu noted that Nigeria’s potential to become a major player in the global economy, by virtue of its market size, human and natural resource endowments, has never been in doubt, though this potential has remained relatively untapped over the years.

To this extent, African Continental Free Trade Area (AfCFTA), the first in the series of the African Economic Community (AEC) economic integration initiative, provides an opportunity for expanded market for goods and services for Nigerians by building on progress achieved through similar Free Trade Area (FTA).

Aremu noted that the experience Nigeria has gained from Economic Trade Liberalization Scheme (ETLS) — the regional FTA — becomes an important platform in the implementation of AfCFTA towards Nigeria’s economic diversification, export expansion and competitiveness towards sustainable growth, creation of sustainable jobs and reduction of poverty, as well as industrialization.