Quaynor: Value addition key to trade & investment

The Vice President, Private Sector, Infrastructure, and Industrialization at the African Development Bank, Solomon Quaynor, recently emphasized the importance of value addition in driving trade and investment within the African Continental Free Trade Area (AfCFTA). In an interview with CNBC Africa at the 30th Nigerian Economic Summit, Quaynor highlighted the immense potential of the AfCFTA, which boasts a population of 1.4 billion people and an aggregate GDP of approximately 3.4 trillion dollars. He stressed the necessity for African nations to leverage their competitive advantages in specific value chains and invest in each other to enhance value addition in the products they trade. Quaynor underscored the significance of industrialization and the exchange of value-added goods under a common tariff regime that prioritizes African production. Despite the promising framework of the AfCFTA, Quaynor acknowledged that successful implementation hinges on political commitment from member countries, which, in turn, will drive private sector participation. He addressed concerns raised by experts and stakeholders regarding challenges such as free movement of people, payment facilitation, and rules of origin, which some view as obstacles to the commencement of intra-African trade. Reflecting on the slow progress in the implementation of the AfCFTA, Quaynor mentioned that while Nigeria and Ghana had initiated trade activities under the agreement in recent years, more concerted efforts were needed to overcome existing barriers. He emphasized the critical role of political leadership, particularly from major economies like Nigeria, in championing the effective execution of the AfCFTA. Quaynor outlined some key strategies for expediting the realization of free movement of goods across African countries within the next few years. He highlighted the importance of establishing a visa openness regime in Nigeria to enable visa-free travel for Africans, thereby facilitating increased business interactions and trade opportunities. Additionally, he stressed the need to address non-tariff barriers to enhance cross-border trade, particularly for market women who play a vital role in the implementation of the AfCFTA. In conclusion, Quaynor reiterated that while the framework for the AfCFTA is in place, its successful implementation requires unwavering political commitment, proactive leadership, and collaboration between governments and the private sector. By prioritizing value addition, reducing trade barriers, and fostering a conducive environment for intra-African trade, countries can unlock the full potential of the AfCFTA and drive sustainable economic growth across the continent.