To harness the potentials inherent in African Continental
Free Trade Agreement (AfCFTA), African countries in West, Central Africa
sub-region must fast-track the dismantling of various tariff and non-tariff
barriers hindering intra-Africa trade.
The Nigerian Shippers’ Council (NSC) on Monday pointed out
that African leaders must embrace tariff liberalisation for intra African trade
to thrive.
Speaking on Monday in Lagos at the opening of the 9th United
African Shippers’ Council (UASC) meeting tagged ‘African Continental Free Trade
Agreement: A Veritable Platform for African Shippers to Mainstream into Global
Trade,’ Jime said that intra-African trade can thrive if African leaders
embrace tariff liberalisation.
According to him, trading within African countries is
presently at a paltry 11 percent while the volume of Africa’s trade compared to
the global trade is at a ridiculous 3 percent.
He however called for the re-orientation and re-organisation
of intra-Africa trade, which he said should start from the West and Central
Africa sub-region.
He said that if the region gets it right, it will be easier
for other sub-region in the African continent to trade among them.
“We believe that AfCFTA is a very important tool to boost
the African economy by increasing intra-African trade. When adequate measures
are put in place to reduce tariff and non-tariff barriers that hamper trading
between countries in the continent, then we will be on our way to achieving
greater economic development for the continent,” he explained.
Continuing, he said: “We all know that it is not an easy
task because a lot of things have been left undone in the past, but we can
start now with great commitment and determination, and we can achieve the
Africa we all desire.”
The Shippers Council’s boss, however, said that if
potentials inherent in intra-African trade are effectively harnessed, the
African economy would expand by 52.3 percent.
“The United Nations Commission for Africa estimated that
AFCFTA would expand the size of Africa’s economy to $29 trillion by 2050 and
increase intra-African trade to 52.3 percent from the current 11 percent. Share
of Africa’s trade to global trade is expected to double from the current 3
percent to 6 percent with the implementation of the agreement,” he said.
Jime further called for the creation of a smooth integration
of transport infrastructures and trade policies as well as the required
awareness among the economic operators in the sub-region.
“There is a need to always look at the holistic impact which
tariff liberalisation would have on our economy rather than just considering
the immediate shortfall,” he added.
On his part, Sunday Umoren, the secretary-general of the Abuja
MoU, said AfCFTA might suffer set back without the participation of the private
sector.
According to him, there is also a need to consider the role
of shipping carriers to international trade, especially in the delivery of
goods and services.
He advised the West and Central African region to have a
strong ship-owning capacity that would reduce the impact of high freight rates
on shipping costs.