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From Juliana Taiwo-Obalonye, Abuja
President Muhammadu Buhari has stated that the African Continental Free Trade Area (AfCFTA) will succeed if African governments show greater commitment to addressing the slow pace of physical integration, political cooperation, and tariff barriers that impede business integration.
According to a statement by
Special Adviser to the President on Media and Publicity, Femi Adesina, Buhari
stated this when he addressed the second African Sub-Sovereign Governments Network (AFSNET) Conference on Friday in Abuja, organised by the Afreximbank in collaboration with the secretariat of AfCFTA and the Nigeria Governors’ Forum (NGF), the President decried the low-level trade among African countries.
“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 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.
The President urged the Conference to use the pan-African institutions’ network and support as a platform for the exchange of ideas, knowledge, and skills.
He went on to say that the conference should also seek and advance innovative solutions to support our shared goal of expanding intra-Africa trade opportunities for our people.
Buhari commended the organizers of the conference for demonstrating innovative thinking by taking the AfCFTA to the grassroots, lauding the President of Afreximbank, Benedict Oramah, and his team for committing $250 million 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, facilitating 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.
The President also acknowledged the AfCFTA Secretariat’s assistance and the role of its Secretary General, Wamkele Mene, in organizing the conference in Abuja.
He emphasized the African Union Commission’s critical role in Africa’s development and expressed delight that this initiative complements 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.
Buhari also commended the outgoing Chairman of the Nigeria Governors’ Forum and Ekiti State Governor, Kayode Fayemi, who also recently emerged as the President of the Forum of Règions in Africa, for embracing this initiative and being at the forefront of sharing and exploring opportunities that improve production and trade facilitation activities with his peers in the region.
He told the conference that he was in the second and final term in office, reflecting on the challenges the continent has encountered since he took office as President in 2015.
In separate messages at the event Fayemi, the Minister of Industry, Trade and Investment, Adeniyi Adebayo and the President and Chairman of the Board of Directors, Afreximbank, Benedict Oramah welcomed the need for deliberate action to remedy the continued reliance of Africa on external trade partners, noting that the AfCFTA provides the platform to do that.
Pledging the commitment of Afreximbank, Oramah said the bank has disbursed over $20 billion in the 5 years to 2021 in support of intra-African trade and on the way to double this to $40 billion in the next 5 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 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.
