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This paper examines the prospects of Aid for Trade (AfT) for enhancing African trade capacity. It discusses the role of AfT in the Doha Round, its coverage as well as progress and challenges one year on. It also analyses some estimates of AfT requirements by African countries and past AfT flows. It is observed that donors are defaulting on their promises and AfT may actually decline as a share of total aid. The paper concludes that effective building of African trade capacity would depend critically on internal efforts, both individually by countries and collectively as regional blocs. On current trend, AfT may prove grossly inadequate in fulfilling its mandate. Going forward, AfT mobilization needs to receive a new impetus if the initiative is not to end up as another empty promise. |
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