AfCFTA:  Delay provides opportunity for manufacturers to increase capacity

By Merit Ibe 

Economic experts have said that the delay in the  implementation of the African Continental Free Trade Area (AfCFTA)  provides an opportunity for Nigerian manufacturers to further increase capacity and enhance their participation when it kicks off fully so they can benefit immensely.

The AfCFTA, expected to provide manufacturers a larger market, boost earnings and improve competitiveness has recorded little or no activity as issues around implementation and documentation drag.

This is crucial seeing that the provisions of the trade agreement requires participating countries to be competitive, innovative and industrious.

Director General of Manufacturers Association of Nigeria (MAN), Segun Ajay-Kadir, had  said there is no doubt that manufacturing is key to national development and now that the country has  entered the AfCFTA, it is important that manufacturing leads the process of ensuring that we produce what we trade in the continental market.

The MAN also warned that the government should be deliberate in promoting Nigeria’s manufacturing sector because the operation of the AfCFTA has the capacity to either expand the Nigeria economy for good or limit and jeopardise it. “Otherwise we will unwittingly create a 1.4 billion people market only for Asia, America and Europe to take advantage of it. That will not be good for our national development and continental integration economically.

“It is very important to  talk about the AfCFTA because it promises to open opportunities for our economy and at the same time it can even limit, if not jeopardise our economy.”

According to experts, the outcome of the AfCFTA will depend on how African countries embrace industrialisation and focus on increasing their productive capabilities in a highly competitive global landscape.

Stakeholders say the trade agreement provides a larger market but available products need to be differentiated and with good quality and variety which is the only way benefits can be enjoyed.

The delay is proving time to improve on quality and strengthen rough edges for a better market

“Many African countries have become import-dependent, with less production, less manufacturing and more consumption and have become distribution networks. We need to transform the industries in Africa, that’s where we will find the jobs.