AfCFTA Must Succeed, Advocates Against Externalization of African Trade- Shettima at Davos
Vice President Kashim Shettima emphasized the importance of the African Continental Free Trade Area (AfCFTA) agreement, stating that the need to boost intra-Africa trade, currently at 15%, and its potential to raise the continent’s GDP are compelling reasons to ensure the success of the agreement.
Shettima highlighted the positive impact of AfCFTA on GDP growth in Africa, citing World Bank projections that estimate a $450 billion increase in Africa’s GDP by 2035 and a more than 81% rise in exports. The Vice President made these remarks at a breakfast event during the World Economic Forum in Davos, Switzerland.
His words, “African trade is to be boosted by 52.3% by 2025. We should increase these targets and look at the trillions of dollars. African countries need to move quickly to iron out whatever agreements and impediments are remaining to ensure free and smooth trade. Issues around rules of origin negotiations must be completed.”
To achieve set objectives, the Vice President suggested that “information sharing with private sector players must be optimized and prioritized,” even as he said trade is a private sector imperative, which governments only facilitate.
He further noted that “negotiations have turned out to be too slow, with clashes between national and continental priorities, leading to too few consummated deals between countries since January 2021 to date.
“Looking ahead, there is a need for speed and cohesion among African countries. The idea of AfCFTA must not fail, and there is no room for mediocrity in today’s world”.
Citing examples of trade unions in Europe, the Americas, and Asia, Shettima said, “African trade cannot continue to be externalized even though we have increased intra-Africa trade from a mere 7% a decade ago to about 15% today.”
According to him, although intra-European trade stands at approximately 70 percent, African leaders must significantly enhance their efforts in empowering countries on the continent and addressing internal challenges. He encouraged Africa’s private sector participants to take proactive steps in asserting their role in trade within the continent.
At the same time, leveraging Nigeria’s status as Africa’s largest economy and the ongoing initiatives by the Tinubu administration to diversify from oil into sectors such as technology and the creative industry, Shettima conveyed to foreign investors that the country is progressing on the right path to becoming an attractive investment destination.
Speaking at a forum during the World Economic Forum in Davos, Switzerland, the Vice President emphasized the administration’s commitment to engaging the entire spectrum of investors, including private equity firms, venture capitalists, impact investors, and competent contractors worldwide.
Highlighting Nigeria’s potential as a major draw for investors, the Vice President underscored the country’s position as the continent’s largest economy with the largest population. He noted Nigeria’s strategic shift away from crude oil dominance towards a more diversified economy, emphasizing investments in technology, arts, culture, creativity, and industrialization.
“Recent developments in our energy sector portend that Nigeria is leading the region in energy security and energy transition. International and domestic energy companies are already engaging the global community and subscribing to the innovations of the future”.
Shettima maintained that Nigeria remains open to engaging with willing nations on mutually beneficial and sustainable terms, underscoring why the country is a reference point for best global practices.
“We have our export, Dr Mrs. Ngozi Okonjo Iweala heading up the World Trade Organisation, meaning that Nigeria must show to be a shining example of the best global trade practices.
“Recently, Nigeria removed the infamous 43 trade items from foreign exchange ban, opening up the space entirely, in what is a very bold move, signifying full trade liberalization,” he noted.
In the pursuit of creating an investment-friendly environment, the Tinubu administration has undertaken significant measures, as highlighted by Shettima. He stated, “Nigeria has fully liberalized the downstream petroleum sector, eliminating cumbersome subsidies. Additionally, we have implemented a market-driven foreign exchange system, putting an end to multiple exchange rates in the economy.”
Furthermore, Shettima expressed Nigeria’s commitment to actively participating in Global Value Chains (GVC) across various levels, to secure substantial value capture and enhance its relevance in global supply chains.
Outlined as key priorities for the country, Shettima emphasized the need to “reposition our energy sector, invest in critical infrastructure such as the rail system, roads, new seaports, and digital technology. These initiatives are geared towards enabling our vibrant youthful population to actively engage with the world.”
“Nigeria also targets a $1 Trillion economy within eight years and this requires that we grow our economy in leaps and bounds. A new era of accountability and productivity is being instituted under the guidance of President Bola Ahmed Tinubu.
“Nigeria is an investor’s delight. There is so much to do. So many sectors to engage in. We intend to make the country into a huge construction site in a matter of months. We have rejigged our revenue administration, and will soon match up with some of the most efficient countries in the world.”
The Vice President also addressed the emergence of new sectors, including the Blue Economy, Digital Economy, Steel sector, Gas Subsector, and Alternative Energy, among others.
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Similarly, Shettima highlighted ongoing efforts under President Tinubu’s leadership to reshape Nigeria’s image, address remaining pockets of insecurity, and showcase Nigeria on the global stage. These remarks were made during an event celebrating Nigeria’s cultural richness and diversity on the sidelines of the ongoing World Economic Forum in Davos.
According to him: “Nigeria’s diversity is her strength. We have over 300 different languages. Each culture has something to learn from others. And something to teach.”
