AfCFTA to stimulate intra-African trade by $35bn annually

Omeiza Bilal

Minister, Industry, Trade and Investment, Dr. Doris Uzoka Anite has revealed that the African Continental Free Trade Area (AfCFTA) could stimulate intra-African trade by $35 billion per year.

According to her, it would also boost agriculture and industrial exports by $4 billion (7%) and $21 billion (5%) respectively.

The Minister who was represented by the Permanent Secretary in the ministry, Amb. Nura Rimi, said AfCFTA would stimulate a GDP rise to $2.6 trillion from $1.7 trillion at the same pushing up consumer spending from $860 billion to $1.4 trillion and thus potentially lifting millions out of poverty.

Speaking at the 30th African Organisation Standardisation (ARSO) General Assembly in Abuja, Uzoka-Anite explained that by reducing trade costs and facilitating business expansion, AfCFTA provides great opportunities for African businesses, including the Small and Medium Enterprises, to gain from and contribute to the continent’s rapidly growing market as well as expand trade under an African Single Market.

Only 35 of the 43 African nations that ratified African Continental Free Trade Area (AfCFTA) agreement that are members of the African Organisation for Standardisation (ARSO) will largely benefit from reduced tariffs and non-tariff barriers among member nations.

Piloted in the Six African nations are Kenya, Rwanda, Cameroon, Ghana, Tanzania, Mauritius, Tunisia and Egypt.

The Minister said the Agreement has been structured to boost intra-African trade which over the years has suffered three major categories of obstacles; namely weak productive capacities and limited economic diversification, tariff-related trade costs, and high non-tariff-related trade costs that hamper the competitiveness of firms and economies in Africa.

To realize this vision she said, “we must embrace standardisation as: “Standards set Good International Best Practices in every sector of Life”, which, if strictly adhered to, could promotes productivity, trade and ensures predictability, transparency, openness, and as well as a basis for Technical Regulations.”

The Director General/ Chief Executive, Standards Organisation of Nigeria (SON), Dr. Ifeanyi Chukwunonso Okeke explained that the theme of this year’s General Assembly “Educate an African fit for the 21st Century – Building a Quality Culture – One Market, One Standard” is not only apt and significant but will further cement the goal of a standardized single market.

He said in alignment with this vision, the current Nigerian administration, under the banner of “Renewed Hope”, has laid out a comprehensive educational roadmap aimed at transforming our educational sector.

“This roadmap focuses on increasing access to quality education, improving infrastructure and investing in the givers of education – the teachers.

“The government’s commitment to educational reform reflects our understanding that education is the foundation of national development.

“At the Standards Organisation of Nigeria, we are committed to integrating this roadmap with our collective goal of fostering a quality culture and transfer of knowledge through standardization – a significant progress in achieving the Sustainable Development Goals that will ultimately capture “no-African-child-is-left-behind effort,” he said.

Also, ARSO President, Professor Alex Dodoo, expressed concerns that the continent has failed to take advantage of it natural resources and population to lead the world.

He stressed it was time to take control of the continent and change the narrative. “Let’s begin to confront African mentality and provide solutions.

“The problems are real. African leaders should educate Africans with the reality of Africans and create basic infrastructures, wealth creation, amongst others,” he said.