AfCFTA: We must tackle geographic, political divisions to increase intra-African trade ― Buhari

President Muhammadu Buhari has counselled that the African Continental Free Trade Area (AfCFTA) will succeed if African governments demonstrate a higher level of commitment to tackling the slow pace of physical integration, political cooperation and tariff barriers that inhibit business integration.

He gave the advice while addressing the second African Sub-Sovereign Governments Network (AFSNET) Conference, on Friday at the presidential villa, in Abuja.

The conference was organised by Afreximbank in collaboration with the secretariat of AfCFTA and the Nigeria Governors’ Forum.

Decrying the low-level trade among African countries, President Buhari stated: ”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.

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• AfCFTA: We must tackle geographic, political divisions to increase intra-African trade ― Buhari
• AfCFTA: We must tackle geographic, political divisions to increase intra-African trade ― Buhari

”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 tackling 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,” the president said, urging the Conference to use the network and support provided by pan-African institutions as a platform for the exchange of ideas, knowledge and skills.

The president also recognised the support of the secretariat of the AfCFTA and the role of its secretary general, Wamkele Mene, in organising the conference in Abuja, underscoring the critical role of the African Union Commission in the development of Africa.

Buhari expressed delight that the 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.

President 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 further said: ”In all, we have remained particularly resilient.

”Together, we have endured several challenges, from the collapse in commodity prices in mid- 2014 up till 2016 and again in 2020, to the COVID-19 pandemic, to the worsening impact of climate change, droughts, food insecurity and the depletion of our ecological reserves, and of course our fight against violent extremism and terrorism.

”We must entrench synergy, enhance intelligence gathering and bring more urgency to our collective efforts as we seek to guarantee peace and prosperity in our continent.

”Therefore, we must increase our efforts in our fight against cybercrime, money laundering, drugs and arms trafficking, smuggling of persons and the reckless destruction of our precious wildlife.

”These and more we must do in order to engender a safe and productive environment for all.”

In separate messages at the event Governor Fayemi, the minister of industry, trade and investment, Adeniyi Adebayo and the president and chairman of the board of directors, Afreximbank, Prof Benedict Oramah welcomed the need for deliberate action to remedy the continued reliance on Africa on external trade partners, noting that the AfCFTA provides the platform to do that.

Pledging the commitment of Afreximbank, Prof Oramah said the bank has disbursed over $20 billion in the 5 years to 2021 in support of intra-African trade and is on the way to doubling this to $40 billion in the next 5 years.

“A USD 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.”