African Leaders Must Prioritize AfCTA To Grow Pan-African Trade
By Kenneth Jukpor
When African amazons in the maritime and port sector gathered to mark the 2nd Continental Conference/ Annual General Meeting (AGM) of African Women in Maritime (WIMAFRICA), the onus of promoting intra-African trade was put squarely on the African heads of state as they were advised to take strong steps in order to promote Pan-African trade rather than patronize trading with Asian and European nations.
Africa’s intraregional trade lies well below that of other regions. In 2016, intra-African exports made up 18 percent of total exports, compared to 59 and 69 percent for intra-Asia and intra-Europe exports, respectively. The figures for imports are similar.
As part of efforts to correct this trade imbalance, WIMAFRICA’s 2018 Conference on the theme; “Trade Facilitation for African Integration- Prospects and Challenges” was set-up to address the underlying issues.
One of the major hindrances to intra-African trade identified at the conference by the Secretary-General to the Abuja MoU, Barr. (Mrs.) Mfon Usoro, is the recent trade arrangements between African nations and the countries in Europe and Asia.
“Africa has been categorized into different economic regions and these regions all have agreement for trade with the European Union (EU). I wonder how this agreement would be sustained now that Britain has pulled out of the EU. We have West and Central Africa, South Africa and East Africa negotiating with the EU separately and the trade agreements would be different. African nations have to look at the motivation behind these agreements and find out why we aren’t talking about Pan-African trade that the African Continental Free Trade Agreement (AfCTA) tried to resolve” she said.
She called on African leaders to prioritize AfCTA as it would lead to an improvement in intra-African trade that would create jobs, improve the standard of living and the various economies of African nations.
Forty-four African nations came together and signed the African Continental Free Trade Agreement. Under the continent-wide agreement, nations commit to cut tariffs on 90 percent of goods with the aim of increasing intra-Africa trade.
Although the historic document creates the largest free trade zone since the creation of the WTO in 1995, eleven African nations are yet to sign the agreement, including South Africa and Nigeria.
While delivering the lead paper titled: “Trade Facilitation as a Tool for Economic Growth”, the Former Chief Executive Officer of Ghana Shippers Council, Dr. Kofi Mbiah highlighted some of the challenges affecting trade facilitation in Africa to include; “Complex customs and administrative procedures/regulations, inefficient and costly transit systems as evidenced by numerous informal roadblocks (checkpoints) along trade corridors, lack of harmonization of trade procedures, standards, regulations and documentation.”
However, he recommended that these challenges could be addressed through; “Better border and customs management, Improvements in trade and transport infrastructure, Open and competitive markets in logistics and service sectors, Harmonized technical, product and safety standards in the sub- region.
He also recommended; availability of information about requirements and enforcement procedures, Quick Port turnaround time, Speedy delivery of cargo, Competitive Port costs, efficient cargo handling, good customer service, good Transit Infrastructure, Good security, Availability of Intermodal links – rail networks and efficient Human Resource.
Meanwhile, the Managing Director of Nigerian Ports Authority (NPA) Ms. Hadiza Bala-Usman seized the occasion to advocate for an African framework targeted at enhancing the movement of cargoes and an improved quality of logistics in the region.
While commending the members of WIMAFRICA for organizing the conference, she urged the maritime amazons to proffer an integrative approach that will eliminate the increasing complexity and cost associated with trade in the continent.
According to the NPA boss, it was imperative that Africa’s regulatory environment be tied with best practices and strengthened to ensure that operators in the trade corridors and border-posts adhere to the various article of the World Trade Organization on Trade Facilitation Agreement.
“The African continent more than ever before needs to redefine its trade processes to ensure simplification of documentation, automation, efficiency, transparency and professionalism; this no doubt will engender ease of doing business” she said.
The event also featured an investiture ceremony as Barr. (Mrs.) Jean-Chiazor Anishere was sworn-in as the new President of WIMAFRICA.
During her acceptance speech, Anishere highlighted the sustainability of the blue economy as one of her goals for WIMAFRICA under her leadership.
Speaking to our correspondent, she said; “I would ensure that WIMAFRICA does partake visibly and meaningfully with the blue economy policies. It is important to note that there is going to be a huge conference on blue economy on November 26th in Nairobi, Kenya. WIMAFRICA has been invited to that conference because the African Union is collaborating with us. AU has asked WIMAFRICA to play a role in some of its events especially those bordering on blue economy. During that conference, WIMAFRICA intends to bring to the table what every WIMA national has done in appreciating the blue economy policy and ensuring that the policy is key in their various national policies”