Aliko Dangote, president, Dangote group and co-chair, AfroChampions Initiative, has urged African countries to get the foundation right for the signing of African continental free trade agreement (AfCFTA).
He said he was not opposed to Nigeria signing the AfCFTA Agreement but all bottlenecks that work against Nigeria’s interest must be addressed.
“If the foundation is right, Nigeria can sign overnight”, Dangote said at the weekend at the 2018 Africa trade forum themed, ‘AfCFTA Ratification and Implementation: A game changer for African Economies’, and organised by Nigeria’s Ministry of Industry, Trade and Investment, and co-organised by the United Nations Economic Commission for Africa (ECA), The Rockefeller Foundation, and the African Union Commission (AUC) in Lagos.
The Africa’s largest economy has been reluctant in signing up to the AfCTA agreement, despite being one of the major initiators in 2015.
Dangote queried the rationale behind formation of regional economic blocs, if trade barriers still exist among African States.
“Is ECOWAS and others working, no they are not working. We should go back and make sure they are working”, he said.
Declaring the forum open, vice president Yemi Osinbajo said although Nigeria is yet to sign the agreement, the government has over the last few months held consultations with major stakeholders on the benefits of the AfCFTA agreement.
According to the vice president the establishment of AfCFTA Agreement had prospects for increase in trade among African countries.
Osinbajo said the focus of the stakeholders forum was on how to resolve trade dispute with recourse to Customs and border issues.
Speaking at the forum, Albert Muchanga, Commissioner for Trade and Industry in African Union Commission, the signing of AfCFTA is gaining momentum.
Muchanga promised that all grey areas raised that could hinder the implementation of the Agreement would be addressed.
The AfCFTA offers a long-awaited platform for Africa to ramp up its industrialization through various channels such as eliminating tariffs on intra-African trade, which will result in more competitive services that reduce business costs, improve business efficiency, and enhance value to consumers.
Economic Commission for Africa (ECA) Executive Secretary Vera Songwe says in an age of trade wars, Africa is sending a strong message that trade deals and reforms can be approached through consensus-building and cooperation, leaving no one behind.
“In order to ensure the African Continental Free Trade Area has a game-changing impact on African economies, we must now develop clear strategies for product diversification and inclusive implementation. The speed at which countries have signed and are now ratifying the AfCFTA agreement underscores the momentum behind this African flagship initiative,” the ECA Chief said.
According to ECA studies, Africa is less industrialized today than it was three decades ago. The continent’s manufacturing share of output and exports has steadily declined, and Africa’s exports remain largely concentrated in primary commodities and raw materials. Through AfCFTA, industrialization will help create employment for Africa’s growing youth population, thereby improving livelihoods, access to education and health.