If Nigeria and other
African countries embrace the Continental Free Trade Area (CFTA) agenda, which
becomes operational by 2017, the continent may witness a mutually benefitting
relationship by all parties, the United Nations Conference on Trade and Development
(UNCTAD) has said.
Specifically, UNCTAD
expressed concerns over the low level of intra-African trade, emphasising the
need for African countries to embrace the full benefits of the CFTA to achieve
economic integration.
Indeed, while the three
Regional Economic Communities (RECs)-the Common Market for Eastern and Southern
Africa (COMESA), East African Community (EAC) and Southern African Development
Community (SADC)-have reached an agreement to expedite the process towards the
operationalization of the tripartite Free Trade Area by finalising outstanding
issues, the ECOWAS region continues to lag behind as the region continues to
grapple with infrastructure and red tapes.
The CFTA, which is
expected to be in place by October 2017, will bring together 54 African
countries with a combined population of more than one billion people and a
combined gross domestic product of more than $3.4 trillion.
With the CFTA, African
leaders aim to, among other things, create a single continental market for
goods and services, free movement of business persons and investments and
expand intra-African trade.
The CFTA is also
expected to enhance competitiveness at the industry and enterprise levels.
The Africa Regional
Head, UNCTAD, Dr. Joy Kategakwa, explained that the best way for African
economies to go is to grab the momentum of CFTA that the African Heads of
States have agreed on, in order to eliminate barriers to trade and create
opportunities for African people in Africa.
Kategakwa, during a
dialogue session organised by the Lagos Chamber of Commerce and Industry (Lagos
Chamber of Commerce and Industry (Lagos Chamber of Commerce and Industry
(LCCI))), tagged "Challenges of economic integration in West Africa",
said: "Regional integration is a cornerstone and a key path to get
strength and numbers to create big amount share of the international trade.
UNCTAD believes in the catalytic role that regional integration plays in
economic development. We are here to help and also to learn the better
structure to support the projects that we have."
"Intra-African
trade has huge potential and this is why we have to work relentlessly to make
it happen more but official figures tell us that it is in the range of 12 to 14
per cent, but of course we are not good at capturing what happens in informal
trading which is a huge part of trade landscape in Africa.
"For me, the
figure is low but the opportunity is huge and this is why opportunities within
ECOWAS, at the continental level must fully be embraced to bring into fusion
the possibilities of opportunities that businesses in Africa have."
She added that one of
the biggest challenges affecting intra-African trade is lack of infrastructure
which has crippled many business opportunities, noting that the CFTA will go a
long way to address the challenge.
She added, "We can
do this by streaming down the cost of tariffs, rules and regulations, creating
opportunities for African people to have businesses wherever it is in Africa.
"We are working
with the African Union (AU), ECOWAS and member states to position them to
better manage technically and analytically how the integration will be a
success," she said.
She noted that UNCTAD
has a long credible experience in supporting countries to develop trade and
trade related policies across different sectors, maintaining that it would
prioritise trade and trade related policies with its regional operations in
Africa.
Also speaking at the
event, the Deputy Governor, Lagos State, Mrs. Idiat Adebule, represented by the
Director in charge of Administration and Human Resources, Mrs. Yetunde
Odejaiye, said the theme of the event is apt and timely as it hinges on
identifying the underlying challenges and prospects critical to achieving the
fundamental objectives of promoting cooperation and integration under the
auspices of ECOWAS.
She said as member
states, African economies have common challenges and similar prospects,
stressing the need to build on the gains already achieved in trade, commerce,
transportation, communication amongst others.
"We also need to
build enduring institutions that cuts across and remove any manifestation of
ideological differences, colonial or political affiliations. We need to come
together and focused to ensure that we turn these challenges to our gains. We
need to put in place infrastructures and ensure adequate security to attract
both local and Foreign Direct Investments (FDIs).
"African nations
must continue to encourage entrepreneurship and allow more private concerns to
create jobs, develop our industries in order to be self-reliant. We should
focus attention on critical change that will attract FDI and stimulate the
economy. African nations must look inward and diversify their economy to meet
the needs of the people in order to increase productivity, encourage
industrialisation and remove all impediments that will inhibit the flow of
economic activities within the region of member countries," she said.
The president, Lagos
Chamber of Commerce and Industry (Lagos Chamber of Commerce and Industry
(LCCI)), Dr. Nike Akande, explained that integration is the main vehicle for
boosting trade within the sub region, saying that with integration, West
African economies would be stronger and also be able to cope with the
challenges of globalisation.
She added that in these
days of raging forces of globalisation, individualistic disposition and outlook
may not be sustainable, calling for the need for west African countries to
broaden its perspectives and thinking beyond individual countries.