Addressing constraints in AfCFTA implementation

As the African Continental Free Trade Agreement (AfCFTA) progresses towards full implementation, key stakeholders are emphasizing the importance of engaging Africa's ministers of finance and their counterparts in industry and trade. According to Segun Ajayi-Kadir, the Director General of the Manufacturers' Association of Nigeria, this synergy is crucial for achieving the necessary infrastructure development across the continent. Ajayi-Kadir highlighted the pivotal role of Africa's private sector in driving the actualization of the AfCFTA, emphasizing that this partnership with the private sector is more reliable and action-oriented compared to past government-centric approaches. The theme of the discussion centered around the significant role of Africa's banks in facilitating the realization of the AfCFTA. Ajayi-Kadir underscored the potential of the agreement to elevate Africa economically, address international trade deficits, and integrate the economies of African nations. He warned that without cohesive action from African countries, the continent risks becoming a market exploited by external players such as Asia, America, and Europe. The conversation delved into the challenges faced by the private sector in advancing the AfCFTA goals, particularly in relation to manufacturing. Ajayi-Kadir pointed out the historical underperformance of Africa's manufacturing sector, leading to heavy dependence on imports. He cited examples like the limited value addition in the cocoa trade between Ghana and Cote d'Ivoire, where Africa exports raw materials but imports finished products, showcasing the urgent need to bolster manufacturing capabilities to boost trade within the continent. A major pain point highlighted by Ajayi-Kadir was the critical infrastructure deficit across Africa, with shortcomings in power supply, port facilities, roads, and other logistical networks hampering intracontinental trade. He stressed that seamless movement of goods and people is essential for successful trade integration, pointing out disparities where it is often easier for goods to travel from Africa to Europe than within African countries. Overcoming these infrastructure constraints is pivotal to establishing efficient cross-border trade and value chains. Furthermore, the conversation touched on the imperative of enhancing competitiveness within Africa to ensure that local manufacturers can effectively compete with foreign imports. Ajayi-Kadir emphasized the need for holistic discussions involving African ministers of finance, industry, trade, and investment to address key constraints limiting collaborative efforts. He called for targeted funding for continental projects that prioritize infrastructure development to facilitate trade and ensure a cohesive trade environment. In concluding remarks, Ajayi-Kadir urged African leaders to move beyond rhetoric and take tangible actions towards scaling up production, transitioning to high-value manufacturing, and creating employment opportunities. He emphasized the urgency of leveraging the private sector's expertise, innovation, and commitment to realizing the vision of a prosperous and integrated African trade landscape. The ongoing dialogue underscores the critical role of collaboration, infrastructure development, and policy alignment in advancing the AfCFTA agenda. As Africa navigates the complexities of trade dynamics and economic transformation, collective efforts and decisive actions are paramount to harnessing the full potential of the continent's trade landscape.