Captain Sunday Umoren is the Secretary General of the Abuja Memorandum of Understanding (MoU) on Port State Control. In this interview with newsmen, he speaks on the African Continental Free Trade Area, as well as sundry regional shipping and maritime issues. TOLA ADENUBI brings the excerpts.
Can you share your perspective on the importance of maritime transportation for the success of the African Continental Free Trade Area (AfCFTA)?
The AfCFTA presents a remarkable platform to revitalize intra-African trade, which has been nearly nonexistent. Trade thrives when goods can be effectively moved from sellers to consumers, and Africa is fortunate to have various transportation options. However, with 38 littoral countries, 13 million square kilometers of Exclusive Economic Zones, and over 47,000 km of coastline, maritime transportation holds tremendous potentials to facilitate trade and regional integration across the continent. Let’s ask ourselves a rhetorical question: Can AfCFTA succeed without maritime transportation? The answer is no. Maritime shipping remains essential, especially given that over 80 percent of global trade is transported by sea. For developing regions, this figure is even higher; I estimate around 95 percent for Africa. So, effective maritime operations are absolutely crucial to AfCFTA’s objectives.
You mentioned the need for substantial investment. What exactly does Africa need to be fully prepared?
UNCTAD projects that to fully-implement AfCFTA, Africa would need 100 additional ships and robust investments in transport equipment and infrastructure. We need to overcome challenges like inadequate ports, reliance on foreign ships, lack of digitalization, and limited investment in ship ownership. Without these improvements, Africa risks missing out on AfCFTA’s opportunities.
What impact does Africa’s reliance on foreign vessels have on trade?
We lose a significant portion of potential income to foreign shipowners. Studies show that African countries are at the bottom in ship ownership, just above Oceania. This reliance means that a large portion of freight revenue goes to foreign interests. There is a need to develop our ship ownership capacity as part of a larger maritime cluster that includes fleet management, ship repairs, and shipbuilding.
Africa is short of vessels as most of the vessels operating at even Dangote Refinery do not belong to Nigeria. How much do you think Nigeria is losing as a result of this?
I can’t give you a figure, because I haven’t carried out that study yet. It is for the government to commission that study, In other countries and other climes, we have individual organizations that will conduct such studies and come up with a figure. What is clear, however, is that foreign vessels reap benefits that would otherwise go to Nigerians. Even on a basic level, the crew could be Nigerians, earning in dollars and repatriating money back home. These are missed opportunities that affect our economy directly. So there are some shortfalls caused by such actions. But like I said, this is what the national authorities should conduct a research on and then present the report to the state. It will be better if we can use our vessels.
How can we encourage African countries to invest in their own ships?
The African Union has encouraged a “Buy in Africa” and “Made in Africa” approach to boost intra-African trade. We need to create incentives for African nations to own ships, promote indigenous participation in regional maritime trade, and limit the use of foreign vessels in regional coastal trade. This will protect our shipping industry, create jobs for African seafarers, and build technical expertise within the continent.
What specific maritime infrastructure does Africa need to develop?
Our ports need to be modernized and digitalized to increase efficiency. Right now, Africa lags behind other regions in terms of active ports, smart and green infrastructure, and digital systems. This is an area where substantial investment is necessary if we hope to support the increase in trade that AfCFTA promises.
What are the major challenges Africa faces in realising this maritime vision for AfCFTA?
We face several challenges, including raising substantial investment, improving port infrastructure, addressing environmental concerns, and streamlining regulatory frameworks. Limited digitalization, high trade costs, especially for landlocked countries, and a lack of efficient trade facilitation measures further complicate our progress. We also need to improve maritime networks and develop financial mechanisms that support African-owned enterprises in the sector.
How can stakeholders work together to address these challenges?
Collaboration is key. The Abuja MoU secretariat works closely with member states, maritime organizations, training institutions, and global partners to meet our objectives. We are involved in capacity building, implementing standardization, and enhancing communication between maritime administrations and port authorities. For example, we have collaborated with the Maritime Anti-Corruption Network and the European Maritime Safety Agency to train officers on integrity and professionalism.
There is this regional bank that is supposed to be domiciled in Nigeria. Do you think they should be dragged into the AfCFTA too?
The regional development bank is a MOWCA thing. MOWCA is strongly in the role of this. The region is pushing for the regional bank to be established as soon as possible. I think the minister has given his word and his support. He’s gathering support from other member states. I can’t tell you exactly what states they are in. But I know that a lot of work is going on there.
You made mention of the fact that we have 22 countries as member states of Abuja MoU, but two are yet to join. Can you give us an update on why they are yet to join?
The two countries are the Republic of Mauritania and the Republic of Namibia. Last year, we managed to get three in. So it is a decision that comes from the Presidents of those countries and the ministers. They have to agree. Yes, regionally, they are there, but they have not signed up to be members. But I can assure you, and I want you to quote me, before the middle of next year, I’m getting them on board. I have advanced efforts on this. Before the middle of next year, that’s the worst-case scenario. But I’m targeting to bring them in by the beginning of next year. This is because it’s a net, if all the members are in, the net is closed. Those of us that left this country, if it is broken or one member is not there, there’s a big gap there. So we need to close that net by getting all the members in.
What final message would you like to share with Africa’s leaders and investors?
The stage is set for Africa to harness AfCFTA’s potentials. Our leaders must prioritise maritime development with a clear roadmap and support indigenous investments in ships and ports. This industry offers Africa a pathway to economic growth and sustainable development, but we must act now. Africa has a wealth of opportunities at its doorstep, and with the right investments and policies, we can transform our economies for future generations.
READ ALSO: Africa needs 100 ships to tap into $3trn AfCFTA trade — Umoren