Washington: World Bank Group President Ajay Banga has called upon developing countries to fortify their regional trade connections amid escalating global trade tensions and uncertainties surrounding tariffs. He emphasized that such efforts are crucial for countries to navigate the intricacies of the global trade landscape, particularly in the wake of tariffs imposed by the U.S., while also promoting economic resilience.

According to Ghana News Agency, Mr. Banga made these remarks during a press briefing preceding the 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF), which carried the theme ‘Jobs – The Path to Prosperity.’ He underscored the pivotal role that developing nations play in global trade, noting a significant rise in their share of global exports over the last two decades-from one-fifth to two-fifths-with half of these exports destined for developed countries.

Mr. Banga highlighted the importance of enhancing regional ties through more efficient border processes, reduced trade costs, minimized friction, and well-defined rules of origin. He argued that these measures could lead to increased trade volumes and support more stable and diversified economic growth, showcasing the substantial benefits of regional trade alliances.

In discussing private sector involvement, Mr. Banga pointed out that anticipated private financing for development projects had not materialized as expected. He identified various obstacles, such as regulatory uncertainty, currency risks, and political instability, which have deterred investors from committing funds. He urged developing countries to build the necessary systems and regulatory frameworks to attract private sector financing for job creation.

Mr. Banga also mentioned the World Bank’s initiatives, such as the Private Sector Investment Lab, designed to address barriers in crucial sectors like energy, infrastructure, agribusiness, healthcare, tourism, and manufacturing. Despite ongoing uncertainties, Mr. Banga noted productive dialogue with the U.S. administration, expressing optimism about the conversations.

Additionally, he highlighted the African Continental Free Trade Area (AfCFTA) as a transformative initiative, with 54 countries committing to create a unified market across Africa. Established in 2018 and headquartered in Ghana, AfCFTA has seen 47 countries ratify the agreement by July 2023. Since the commencement of trade under AfCFTA in 2021, several African nations have actively participated in trading various goods, demonstrating the agreement’s potential to enhance intra-African trade and economic integration.