Harboursandport.com: Lagos - African countries have been charged to exploit intra-African trade to harness the economic benefits as well as increase their productive capacity.
President Mohammadu Buhari charged at the opening ceremony of the 9th African Shippers’ Day organized by the Nigerian Shippers’ Council (NSC) in collaboration with the Union of African Shippers’ Council (UASC) in Lagos, noted intra-African trade in goods was $135 billion representing 15% of Africa’s total trade.
Buhari, who was represented at the event by the Minister of State for Transportation, Prince Ademola Adegoroye at the event with the theme: “African Continental Free Trade Agreement: A Veritable Platform for African Shippers to Mainstream into Global Trade,” lamented the fact that compared intra-African trade, the sharp contrast to trade in other regions which is as high as 70% within the European Union and 60% in Asia.
According to him, “The global economy is a source of growth that African economies cannot afford to ignore. While African exports of goods and services have seen their fastest growth in the past decade, the volumes remain low at just 3 percent of global trade. African countries must therefore expand and diversify their participation in international trade and global value chains to create wealth, generate employment, and reduce poverty on a large scale as well as transform their economies. Achieving this lofty economic objective I believe is one of the major reasons that informed the birthing of the AfCFTA.”
“The establishment of the AfCFTA presents major opportunities for production and exports, creates employment, and limits the impact of commodity price volatility on the economies of various African countries. AFCFTA is expected to bring about a number of benefits to producers, consumers, and countries alike. However, for AFCFTA to have a positive influence on long-term investment in productive capacities, African governments must develop appropriate supporting policies, build the requisite infrastructure and ensure an educated workforce. We will need to actively promote productive employment and decent workplace, women’s empowerment and food security and reduction in inequalities.”
He explained that in Nigeria, AFCFTA is already seen as a game-changer to stimulate intra-African trade because more ambitious trade liberalisation signifies the greater expansion of Nigerian exports to its African partners.
In his welcome address, the Executive Secretary of NSC, Hon. Emmanuel Jime stressed that there is a need to sensitize various governments within the region to fast-track the dismantling of tariff and non-tariff barriers hindering trade in the region.
Jime also asserted that the reorientation and reorganization of intra-African trade should start from the West African sub-region, adding that when the sub-region gets it right, it would be easier to connect and freely trade with other regions of the continent.
Describing transportation as a crucial vehicle for AfCFTA to thrive, he added that: “Africa needs to create smooth integration of transport Infrastructures and trade policies as well as the required awareness among the economic operators in the sub-region.”
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