President Muhammadu Buhari has decried the low-level trade among African countries, emphasising that Intra-regional trade still accounts for a very tiny fraction of total trade in Africa.
The president stated this while addressing the second African Sub-Sovereign Governments Network (AFSNET) Conference on Friday in Abuja.
The event was organised by the Afreximbank in collaboration with the secretariat of AfCFTA and the Nigeria Governors’ Forum.
The president, therefore, maintained that the African Continental Free Trade Area (AfCFTA) would only succeed if African governments demonstrate a higher level of commitment to tackle the slow pace of physical integration, political cooperation and tariff barriers that inhibit business integration.
”As leaders, we must all be concerned that we are not trading enough amongst ourselves.
”It is a bitter reality that Intra-regional trade still accounts for a very tiny fraction of total trade in Africa.
”We have to understand that if this new drive towards a continental free trade area is to succeed, we must demonstrate a higher level of commitment.
”This is to tackle the slow pace of physical integration due to geographic and political fragmentations, the pace of political cooperation, and difficult tariff and non- tariff barriers that inhibit business integration.
”I am firmly convinced that with the right collaborative action, we will be able to record a much stronger pace of transformation.
”Through shared knowledge, innovation and creativity, we will be better able to cater for the needs of the African continent’s population of over 1.4 billion people,” he said
He urged the Conference to use the network and support provided by pan-African institutions as a platform for the exchange of ideas, knowledge and skills.
The Conference, he said, should also seek and advance innovative solutions to support our common quest for the expansion of intra-Africa trade opportunities for our people.
The Nigerian leader commended the organizers of the conference for demonstrating innovative thinking by taking the AfCFTA to the grassroots.
He lauded the President of Afreximbank, Prof. Benedict Oramah, and his team for committing 250 million dollars as seed capital towards the establishment of the AFSNET.
He acknowledged that the initiative spearheaded by Afreximbank was aimed at firmly establishing and deepening intra-continental trade investment development frontier for Africa.
It will also facilitate the reduction in the continent’s dependence on exports of primary commodities as well as minimizing the risks experienced due to strong reliance on global value chains.
”This opportunity, if properly harnessed, is a significant step for Africa to begin carving its own niche in the global value chain, from the constituent units up.
”This will undoubtedly complement broader programmes such as the AfCFTA which remains one of the most strategic pan-African agenda to deliver inclusive and sustainable development,” he said.
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The president also recognised the support of the Secretariat of the AfCFTA and the role of its Secretary General, Wamkele Mene, in organizing the conference in Abuja.
He underscored the critical role of the African Union Commission to the development of Africa and expressed delight that this initiative compliments the AU vision of achieving the 2063 Agenda –“The Africa We Want”.
He, therefore, assured the participants of the full support and cooperation of the Nigerian government in the implementation of the programme.
While pledging the commitment of Afreximbank, Prof Oramah said the bank has disbursed over 20 billion dollars in the five years to 2021 in support of intra-African trade and on the way to double this to 40 billion dollars in the next five years.
”We have supported the AfCFTA Secretariat through current funding; launched in collaboration with the AfCFTA secretariat and AU Commission, the Pan-African Payment and Settlement System (PAPSS) to support payment for intra-Africa trade in African currencies.
”A 3 billion dollars facility for clearing and settlement is available for a continent-wide operation of the system;
”We have also launched the African Collaborative Transit Guarantee Scheme to enable goods to move across borders easily, ” he said.
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