Ruto calls for enhanced Intra-Africa trade to combat extreme poverty

President William Ruto has emphasized the need for increased intra-African trade through the effective implementation of the African Continental Free Trade Area (AfCFTA).

Speaking at the Economic Pillar on Trade and Investment during the 9th Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, on Thursday, Ruto highlighted the importance of removing trade barriers to better withstand and navigate the challenges posed by growing global uncertainties and disruptions in international trade.

The Head of State asserted that increasing trade among African nations would be the most effective strategy in the fight against extreme poverty.

He regretted that African countries continue to trade more with the outside world, saying that this trend needs to be reversed. Currently, intra-African trade stands at a mere 15 per cent of the continent's total trade, in stark contrast to 60 per cent in Europe and Asia.

"For our continent to unlock its vast potential, create opportunities and wealth for its citizens, and drive inclusive prosperity, Africa must trade more with itself," he said.

Experts at the summit noted that cross-border free trade zones, free ports, regional and trans-African corridors, virtual digital trade platforms, and other initiatives need to be considered in order to build the desired common African market.

They explored how Special Economic Zones can deliver on the AfCFTA's promises in accelerating intra-African trade and boosting Africa's trading position in the global market by strengthening the continent's common voice and policy space in global trade negotiations.

However, Ruto acknowledged that Africa is making steps toward improving intra-continental trade, particularly with the implementation of the AfCFTA.

The Head of State pointed out that intra-African trade could potentially increase to 50 per cent by 2035, generating immense wealth, millions of decent jobs, new opportunities for small businesses, and opening fresh markets for local goods and services.

To realise this vision President Ruto called for reforming and revitalising agriculture, reforming the global credit rating system while establishing an African one, and providing a platform for the private sector to contribute positively.

He explained that the current global credit rating system often overlooks Africa’s unique economic realities, unfairly penalizing countries on the continent during periods of global distress.

"Progressive reforms are essential to unlock affordable, predictable, and sustainable financing for development. I therefore support the establishment of an African Credit Rating Agency, complemented by reforms in the global credit rating system to address structural inequities," he said.

Ruto called for increased investment in agriculture to tap into its immense potential and achieve food security and economic growth.

He noted that the agricultural sector employs over 60 per cent of Africa’s population and contributes nearly a quarter of the continent's GDP—yet its potential remains unrealized.

"With 65 per cent of the world's remaining arable land, Africa should not only be able to feed itself but also feed the world," he said.

The Head of State underscored the importance of deployment of technology, financing for farmers, investments in rural infrastructure, and greater trade among African nations to transform agriculture from subsistence farming into a significant driver of industrialisation, job creation, and shared prosperity.

"This is not a failure of potential, but rather a failure of investment, infrastructure, and integration," he said.

Ruto emphasized the importance of public-private partnerships in achieving Africa's economic prosperity.

He said the private sector is an essential driver of innovation, industrial transformation, and job creation.

"It is the responsibility of governments to create a favorable environment with sound macroeconomic policies, modern infrastructure, and strong institutions that inspire investor confidence," he said.

"A vibrant private sector brings not only capital to bridge financing gaps but also innovation, technology, and efficiency—critical components for sustainable growth," he added.

The President emphasized that transformation cannot be achieved through endless strategizing, planning, or indecisiveness; it requires action.

"We must have the courage to make difficult decisions today, even if they are inconvenient in the short term, as they will benefit our people and countries in the long term," he said.

Ruto witnessed the signing of various development cooperation documents at the ongoing TICAD meeting.

These included a Statement of Intent regarding the Samurai Bond, a financial instrument issued by foreign entities in the Japanese capital markets, which was signed between Kenya's National Treasury and Nippon Export and Investment Insurance of Japan.

"Our plan to access financing in the Japanese capital markets is a significant step forward in our innovative policy to diversify resource mobilisation for priority national development and transformation," said President Ruto.

Kenya also signed a Letter of Intent and a Concept Note to accelerate access to Cefiderocol, a crucial antibiotic approved for treating bacterial pneumonia in the country. This agreement also includes provisions for the supply of medicines with support from the Global Antibiotic Research.