Afreximbank President Highlights Private Sector’s Importance In Boosting Intra-African Trade

The African Continental Free Trade Agreement (AfCFTA) has certainty of progressive elimination of tariffs on intra-African trade, just as it facilitate business trades within the continent, cater and benefit from the growing African market.

The President of the African Export-Import Bank (Afreximbank),  Dr. Benedict Oramah, said these on Monday.

Citing the UN Economic Commission for Africa, Dr. Oramah stated that that the AfCFTA had the potential to boost intra-African trade by 53.2 per cent by eliminating import duties and to double such trade if non-tariff barriers were also reduced.

He was speaking during a panel discussion titled ‘Strategy to deepen Nigeria-Africa trade’, which was hosted by Afreximbank in Abuja as part of an engagement event to promote the Intra-African Trade Fair (IATF) scheduled to take place in Cairo from 11 to 17 December.

Also participating in the panel were H.E. Ibrahim Hassa, Deputy Governor of Jigwa State; Amb. Albert Muchanga, Commissioner for Trade and Industry, African Union; Alhaj Jani Ibrahim, National Vice President, NACCIMA; Ade Ipaye, Deputy Chief of Staff to the office of the Vice President; Abubakar Bello, Managing Director, NEXIM Bank and Victor Osadolor, Deputy Managing Director, United Bank for Africa.

“Trade is the gateway to development and statistics in Africa are not too impressive, especially when it comes to one of the biggest opportunities for growth: trade among African countries,” said Dr. Oramah.

“Infrastructure development is a top developmental priority in Africa in two critical areas: electricity and transport. Access to electricity forms the basis of an industrialized economy and, hence, trade. Unless we can do something to tackle this issue, we have no hope of increasing intra-regional trade in Africa.

“We have realised that sustainable economic growth on the continent cannot be achieved quickly without participation from both the private and publics sectors. The private sector has a crucial role to play in making regional integration work for Africa because, though trade agreements are signed by Governments, it is the private sector that understands the constraints facing enterprises and is in a position to take advantage of the opportunities created by such agreements and regional trade initiatives,” he added.

The President urged African Governments to create more space for the private sector to play an active role in the integration process instead of leaving the sector to act as a passive participant.

The Intra-African Trade Fair, being held in collaboration with the African Union and the Export Development Authority, which is representing the Egyptian Ministry of Trade and Industry, is one of many steps being taken to ensure that continental trade becomes a fast reality.