AfCFTA to increase intra Africa trade by $35 billion annually - Hassan Bello

Segun Oladipupo |

The recently signed African Continental Free Trade (AfCFTA) if successfully implemented, would increase intra-African trade by as much as $35 billion per year or 52% above the baseline by 2022, says the Nigerian Shippers’ Council.

The Executive Secretary and Chief Executive Officer of the Council, Barr. Hassan Bello said this at a public function in Lagos yesterday.

Bello was represented at the event by James Chabulatuda , Operations Officers, Consumer Affairs, of the Council.

Recall that the Agreement, protocols were adopted by Summit in March, 2018 following the deposit of the required 22 ratifications, the Agreement came into effect on 30th May, 2019.

Nigeria and Benin signed the Agreement during the July 2019 summit in Muamey, Niger. As at 25th September, 2019, all countries except Eritrea have signed the Agreement.

Bello added that the Agreement would have the consequence of imports from outside the continent decrease by $10 billion per year, whereas agricultural and industrial exports would increase by $4 billion and $21 billion above the baseline.

He added that the AfCFTA would boost small and medium sized enterprises by 80% in Africa’s growth by using regional markets as stepping stones for expanding into overseas markets outside Africa.

The Council boss stated that Nigeria with population of 200 million, seventh largest in the World, 3rd largest youth population in the World, 20th world largest economy and strong services, it will create job opportunities for the people as well as opportunities for investment.

Bello maintained that the main objectives of the Agreement include; expansion intra-African trade through better harmonisation and coordination of trade within continent.

Enhancement of competitiveness at the enterprise level to support economic transformation, exploitation of economic of scale to take advantage of continental market access.

Others are: adding values to Africa’s natural resource; developing regional value chains and attracting investments into Africa.