President Muhammadu Buhari

The Nigerian leader, President Muhammadu Buhari has proposed the development of appropriate regional policy framework and requisite infrastructure base that would help member nations reap optimum benefits from the African Continental Free Trade Agreement AfCFTA scheme, which is primarily designed to boost intra-African trade.

Speaking at the ongoing 9th edition of African Shippers’ Day hosted in Lagos by the Nigerian Shippers’ Council NSC, the country’s Port Economic Regulator, the President said for AfCTA to have positive influence on long-term investment in producing capacities, African governments must develop appropriate and supporting policies, build the requisite infrastructure and ensure an educated work force.

The theme of this year’s African Shippers’ Day is: “African Continental Free Trade Agreement: A Veritable Platform for African Shippers to Mainstream into Global Trade”. The event began on Monday and it is expected to end on Wednesday.

Represented by the Minister of State for Transport, Prince Ademola Adegoroye, Buhari said AfCTFA is expected to bring about a number of benefits that African producers would enjoy in terms of access to cheaper inputs and intermediate goods as well as larger markets for their products while consumers have access to cheaper goods and a broader variety of products.

“On their part African economies should experience gains from trade and further benefit from removing the onerous requirements of belonging to multiple and overlapping trade agreements within the continent. The United Nations Economic Commission for Africa forecasts that AfCFTA could boost intra-African trade by 62 per cent with the industrial sector forecast to gain the most.

“With this, the Gross Domestic Product GDP and exports would increase by $44billion and $56billion respectively and AfCFTA could potentially increase jobs and move informal traders into formal sector”, the President said.

He however observed that digitalisation has been transforming the way businesses are done in Africa, citing 2011, when digitalisation impacted the GDP of Africa by $8.3bn in addition to 600,000 jobs on the continent.

He said: “We need to actively promote productive employment and decent work place, women’s empowerment and food security and reduction in inequalities.

“In Nigeria, the government has realised that AfCTA would be a game changer when it comes to stimulating intra-African trade because the more ambitious the trade liberalisation, the greater the expansion of Nigeria’s exports to her African neighbours.”

Meanwhile, Executive Secretary/CEO of the NSC, Hon. Emmanuel Jime, while delivering his welcome address made a strong case for member nations from the West and Central African sub-region to dismantle various tariff and non-tariff barriers currently hindering regional trade. This, according to him, would boost intra African trade and enable them harness the potential of AfCFTA.

He noted that collapsing all these tariff and non-tariff barriers had become expedient given that intra African trade currently stands at a dismal 11 per cent while Africa’s contribution to global trade stands at three per cent.

“Re-orientation and re-organisation of intra-African trade should start from West and Central African sub-region because when the region gets it right, it will be easier for other sub-regions in the African continent to trade among themselves.

“I believe that AfCFTA is a very important tool to boost the African economy by increasing intra-African trade. When adequate measures are put in place to reduce tariff and non-tariff barriers that hamper trade between countries in the continent, then we will be on our way to achieving greater economic development for the continent.

“We all know that it is not an easy task, because a lot of things have been left undone in the past, but we can start now, and with great commitment and determination, we can achieve the Africa we all desire”, Jime said.

He further argued that if the potential in intra-African trade is effectively harnessed, the African economy would expand by 52.4per cent or more.

According to the NSC-boss: “The UN Commission for Africa estimates that AfCTA would expand the size of Africa’s economy to $29trillion by 2050 and increase intra-African trade to 52.3per cent from the current 11 per cent. Share of Africa’s trade to global trade is expected to double from current three per cent with the implementation of the agreement. The re-orientation and re-organisation of intra-African trade should start from our sub-region, when we get it right in West and Central Africa, it would be much easier to connect and freely trade with other regions of the continent.

“We need to create smooth integration of our transport infrastructure and trade policies as well as the required awareness among the economic operators in the sub-region. There is need to sensitise our various governments to fast track the dismantling of various tariff and non-tariff barriers that are hindering international trade. We should always look at the holistic impact which tariff liberalisation would have on our economy rather than just considering the immediate shortfall.”