NTTS 2023: Stakeholders advocate collaboration, structured policy for seamless implementation of AfCFTA

THE 2023 edition of the National Tourism, Transportation Summit (NTTS) and expo held at the Abuja International Conference Centre between May 8 and 9, was another platform that gave stakeholders an opportunity to reassess the implementation of Africa Continental Free Trade Agreement (AfCFTA).

The event, which rallied core value chain players in the allied industry, has as its summit theme: “AfCFTA: Exploring Intra-African Trade Tourism and Transportation Opportunities and Mitigating the Barriers to Collaboration.”

Participants, who held strong views on the importance of the AfCFTA to the trade liberalisation of Africa, said collaboration among authorities in the trade command chain has to be activated through strong partnership trend while the government of each African country has to align policies towards seamless implementation of the AfCFTA.

Speaking on “Actualising Africa’s Open Skies Agreement in Consonance With AfCFTA Regime Implementation,” the Director of Commercial and Business Development at Federal Airports Authority of Nigeria, Sadiku Rafindadi, said AfCFTA requires essential precursors to be in place.

“We can all agree that the first expectation, if successfully executed, is a tremendous increase in passenger traffic through the airports. Therefore, there must be significant investment in our aviation infrastructure such as our airports, air traffic control systems and maintenance facilities and we are continuously upgrading our aviation infrastructure to meet the needs of the industry.

“To optimise trade facilitation, we have expanded our cargo-based operations to better facilitate commerce.  We are currently establishing a cargo village in Lagos, and we have cargo-enabled terminals in Port Harcourt and Kano in addition to Abuja.

“We are also drafting a Cargo Roadmap with other stakeholders through Avio Cargo which. upon implementation, will further address issues on trade facilitation, simplification of airport fees, standardisation of cargo products and packaging, to mention a few.

“Ultimately, we hope that we can collaborate with other stakeholders like the Nigerian Customs Services to streamline the customs procedure including cargo inspection and customs clearance to reduce times and cost. FAAN has already migrated to the NICIS II platform for more synergy in our operations.

“We believe that actualising Africa’s Open Skies Agreement while complementing the objectives of the AfCFTA regime requires African governments to first harmonise their aviation policies and regulations with the objectives of both SAATM and AfCFTA to create a single aviation market especially one with a level playing field for all airlines operating in the region.

“This would involve the liberalising air traffic rights, removing tariffs and other trade barriers and restrictions on air transport, standardising safety and security regulations and establishing a common framework for aviation infrastructure development.

“We also believe that AfCFTA and SAATM-compliant air service agreements should be established through bilateral and multilateral talks between African nations. Fair competition, reciprocity and unrestricted market access between signatory governments should all be encouraged by these agreements.

“To guarantee strict adherence to safety, security and environmental standards, a robust regulatory framework must be developed. The African Civil Aviation Commission (AFCAC) must be efficient in its regulatory function to facilitate coordination and monitoring of air transport operations.”

Speaking on “AfCFTA regime efficacy: The role of gatekeepers in trade facilitation,” CSC A. A Maiwaada said that the Nigerian Customs Service has a critical role to play in the effective implementation of AfCFTA considering the NCS core functions of revenue generation, suppression of smuggling and trade facilitation, just as he drew attention to some of the impediments to the implementation of AfCTFA.

According to him, Africa’s trade landscape was characterised by fragmented markets, with numerous trade barriers such as high tariffs, non-tariff barriers and complex customs procedures, which hindered the movement of goods and services across borders. This fragmentation, he said, resulted in limited trade volumes and inhibited the development of regional value chains and economies of scale.

He also explained that African countries had different regulatory frameworks and standards, making it difficult for businesses to comply with varying rules and regulations across different countries, adding that this lack of harmonization created additional costs and complexities for cross-border trade and hindered trade facilitation and integration.

“Not all the member-states meet the customs requirements on infrastructure for trading. The agreement has negative effect on some of the national policies e.g, in Nigeria AfCFTA undermined the country’s food import substitution policy on local production and consumption.”

“While some countries are arguing for stringent rules of origin to ensure that preference accrues only to members and is not deflected to non-members, others – generally the least developed countries with weaker productive capacities – advocate more flexible, pro-developmental rules that allow them to source inputs from the cheapest and most competitive locations.”

Looking forward, he said comprehensive automation of all processes; implementing advanced technology solutions, such as artificial intelligence, machine learning, and robotic process automation, to automate various customs processes, including customs clearance, risk assessment, and documentation management. This can streamline operations, reduce human errors and enhance efficiency.

He added “harmonisation of documentation to ensuring consistent documentation requirements and processes across different customs offices and countries to minimise discrepancies, errors, and delays in customs clearance can be achieved through standardisation of documentation formats, procedures, and data sharing mechanisms.

“Strengthening collaboration and information sharing among customs administrations of different countries through platforms like the world customs organization (WCO) and regional customs unions. This can facilitate exchange of best practices, intelligence, and risk management strategies, leading to improved customs performance.

“Ensuring that all state parties adhere to the commitments made in international customs agreements, such as the revised kyoto convention, the world trade organization’s trade facilitation agreement, and regional customs agreements. This can foster trust, predictability, and consistency in customs processes.

He said that there must be review and update of customs laws, regulations, and procedures to align with international best practices and facilitate trade. This can involve simplifying customs procedures, reducing unnecessary regulatory burdens, and implementing risk-based approaches to customs controls.

“Engaging with key stakeholders, such as importers, exporters, customs brokers, logistics providers and other government agencies, in regular dialogues and consultations to gather feedback, identify issues, and jointly develop solutions. This can foster a collaborative approach to customs operations and enhance transparency.

“Facilitating coordination and information sharing among different government agencies involved in trade facilitation, such as customs, border control, standards, and tax authorities. This can enable a holistic and integrated approach to trade facilitation, streamline process and reduce duplicative efforts.

“Also promoting close collaboration and coordination among customs, other government agencies, and private sector players involved in trade, such as importers, exporters, and logistics providers. This can lead to improved information exchange, streamlined processes, and reduced trade barriers.

“Establishment of specialised customs laboratory to conduct scientific analysis and testing of goods to determine their authenticity, quality, and compliance with customs regulations can enhance the accuracy and effectiveness of customs inspections, reduce smuggling, and protect public health and safety.

“Strengthening of air transportation in Africa through increased connecting routes of both cargo and passenger flights can be achieved through provision of support to single African air transport market (SAATM) project aimed at improving intra-African air transport.

“However, the Nigeria customs trade digitization project is a game changer that will improve compliance in the trade-supply chain, enhance trade facilitation as well as increase revenue, tackle corruption and ultimately ensure seamless implementation of preferential trade agreements such AfCFTA.”

Earlier at the event, the convener of the NTTS and National President of the Institute for Tourism Professionals Nigeria (ITPN), Otunba Abiodun Odusanwo explained that the AfCFTA has taken central position in the summit in the last two years, noting that it was to enable the operators have a bigger picture of the agreement.

Also, it create a platform to see the various protocols in the AfCFTA and helps participants to activate ways on how they can leverage on the widows of opportunities for Nigerian businesses to move within the continent thereby achieving the dreams of AU.

Consolidating past event, this year’s focus was on dissecting the barriers militating against the full implementation of the protocols of the agreement and proffer solutions to them while moving toward full implementation of the agreement.

“Before now, the MDAs and private sector have worked in silos whereas they are supposed to work as a team. Therefore, the summit is designed to bridge the gap and forged collaborations among the various MDAs and the private sector operators because they are inter-related and interconnected.”