The Chief Executive Officer of UBA Capital PLC Oluwatoyin Sanni speaking at the INVEST in Ghana forum advised African governments to do more to ensure free flow of goods and services and people across borders in Africa to ensure intra-Africa trade grows. She was particularly concerned at the slow pace of this agenda to harness the full potential of trade among African countries and recounted the harrowing experience of traveling through West African border towns two years ago when she decided to embark on a vacation trip with her family. “The frustrations alone at these borders will discourage you to move to the next country, and at times you are at a loss whether African leaders mean the talk about regional integration that we spend much on annually,” she added. She addressed this and other challenges she believes hold key to the growth in intra-Africa trade. The lack of will or sheer failure to do so leaves much to be desired but encouraged businesses with the little or no support to do much for themselves.
African Governments have made several attempts to exploit this potential of regional trade for development, the most recent being the decision by African leaders at the African Union summit in January 2012 to boost intra-African trade and fast-track the establishment of a continental free trade area.
There is the lack of political will to remove trade barriers among regional neighbors. Particularly, the West African sub region was pointed as failing to do much in this regard to encourage trade among its neighbors. Nigeria a regional power imports most common raw materials from outside the regional bloc and same for most countries in the bloc. A common currency meant to facilitate the Economic unity has failed to materialize a decade down the line. It’s estimated intra- Africa trade lag behind that of Europe and the other continents.
But a success story on the continent worth emulating is the East African bloc who have yielded to political will to remove if not all much trade restrictions to foster trade relations among themselves. Rwanda, Kenya, Ethiopia et al have all benefitted with recent economic successes. The potential exists but requires political support to harness the full benefits.
-Removing trade barriers
-common regional passports
-political will
-infrastructural improvement
-common currency
Are among the factors to be addressed for intra-Africa trade to benefit all.
Growth in intra-Africa trade is overtaking trade between Africa and rest of the world. However, more needs to be done to boost intra-African trade to take the full advantage of the increasing commercial depth of Africa’s rapidly expanding consumer markets.
Author: Paa Swanzy-Essuman
