Thread by @ProfOsinbajo

AfCFTA is expected to bring a number of benefits to producers, consumers & countries alike. The hope is that African producers would benefit from access to cheaper inputs, intermediate goods & large markets while consumers have access to cheaper goods and a variety of products.

The Economic Commission for Africa has estimated that with full liberalization, intra-Africa trade would increase by 52.3% as compared to a baseline scenario without AfCFTA by 2022.

The pandemic exposed our dependence on commodity exports to other parts of the world and on the import of manufactured goods from them. As at 2017, intra-Africa trade in goods was $135 billion which was just about 15% of Africa’s total trade.

This is in sharp contrast to trade in other regions which is as high as 70% in the European Union and 60% in Asia.

The imposition of export bans including on food items by some countries and the disruption of global supply chains at the height of the pandemic showed just how exposed & vulnerable African countries are because of limited productive capacity and a lack of regional value chains

It is probably worth noting that Nigeria played a very active role in the AfCTA negotiations. The main intensive stages were chaired by the late Ambassador Chiedu Osakwe who was then the Director-General of the Nigerian Office for Trade Negotiations.

All of this work was disrupted by the outbreak of the pandemic. The image below details Nigeria’s journey with AfCTA.

We recognize that especially here in Nigeria that the AfCFTA is not a magic wand that automatically brings about growth and prosperity. The reality is that if care is not taken trade liberalisation can expose the Nigerian economy to unfair competition and sharp trade practices...

...with adverse consequences for our producers who might have to close down their businesses and for our workers who would then lose their jobs.

We need to be proactive if we are to participate effectively in the AfCFTA. This will entail improving our ability to produce & trade competitively in goods and services which is why the Federal Government is investing heavily in power, road, rail and port infrastructure projects

It is also why we are taking active steps to improve the business environment and to facilitate trade across our borders including through the implementation of the National Trading Platform or Single Window Project.

If the AfCFTA is to achieve the desired objectives, then it is also very important that Nigeria should push for the implementation of complementary progs & protocols including the Protocol on Free Movement of Persons, the pan-African payments system and other sectoral progs.

Nigeria has interest in promoting an AfCFTA that catalyses regional value chains, enables free movement of people, attracts investments and improves the continental payments system.

I shared this and more at the 2020 Virtual Conference Of The Nigerian Economic Society, Themed: African Continental Free Trade Area (AfCFTA) In Post COVID-19 Era.

You can read the full text here yemiosinbajo.ng/2020-virtual-c…