Key highlights:
- African countries building on the pan-African legacy of leaders like Kwame Nkrumah to establish one continental market.
- The AfCFTA will overcome the constraints of Africa’s small, fragmented markets.
- African Continental Free Trade Area (AfCFTA) increased intra-African trade by 20 per cent in 2022.
Nigeria’s Vice President, Yemi Osinbajo revealed that the African Continental Free Trade Area will overcome the constraints of Africa’s small, fragmented markets and its impact on commerce within the continent both in goods and services will be profound.
The Vice President also noted that the Nigerian Diaspora is the vanguard for keeping up with the rest of the world (a secret weapon).
Osinbajo disclosed this in Twitter statements on Thursday evening, citing his recent visit to King’s College London.
African Continental Free Trade Area
The Vice-president revealed that while some parts of the world were reviewing or quitting regional integration agreements, African countries were building on the pan-African legacy of leaders like Kwame Nkrumah to establish one continental market, he said:
- “The AfCFTA will overcome the constraints of Africa’s small, fragmented markets and its impact on commerce within the continent both in goods and services will be profound.
Recalling his speech at King’s College London, the Vice President said Africa has shown outstandingly good examples through the establishment of the African Continental Free Trade Area.
He added this would be particular, so, for adequate attention is paid to building regional value chains within the continent.
Diaspora
The Vice President noted that he sees the Diaspora as our vanguard for keeping up with the rest of the world (a secret weapon), he added:
- “ They are a source of strength asides from their remittances which is substantial, rising from 37 billion in 2010 to 96 billion in 2021.
- “We saw the contributions from the Ethiopian Diaspora that helped to fund the building of the Great Ethiopian Renaissance Dam (GERD). Kenya has also licensed a Diaspora Investment Fund that will enable Kenyans living abroad to invest safely at home.
- “Instead of lamenting the brain drain, Africa should organize itself to take advantage of its Diaspora.
Backstory
Nairametrics reported recently that the African Continental Free Trade Area (AfCFTA) increased intra-African trade by 20 per cent in 2022.
This was disclosed by the Acting Executive Secretary of the Economic Commission for Africa (UNECA), Antonio Pedro, at the Ninth Session of the Africa Regional Forum on Sustainable Development in Niamey, Niger.
He added that despite the growth, it failed to hit the commission’s target of 52%, saying:
- “Certainly not yet. But the levels of intra-African trade have gone up from 13 per cent or so, before the African Continental Free Trade Area agreement was adopted, to now around 20 per cent but that is not good enough because other regions are trading amongst themselves.
- “I mean, above 70 per cent or so Europe, Asia. So, that certainly is our target.”