A prominent watchword guiding decision making in all commercial ventures is, ‘If the prospects for profit are considerably high and the hazards or harm are minimal, then the enterprise is a worthwhile pet project. It is good to go’. There is no promise for the total absence of loss instances, however. Life itself is risky enough, but there are some adventures that are worth taking.
‘On Sunday, President Muhammadu Buhari signed the African Continental Free Trade Area (AfCFTA) agreement’. That was how the preamble captured it in the article published on July 11 2019 by Premium Times and authored by Oladeinde Olawoyin. That event alone threw the Nigerian indigenous business moguls and interests and indeed the entire African economic family into cheerful mood as it brought to an end the protracted period of wait among the stakeholders. Among other numerous and huge benefits, the signing of the AfCFTA, as the name bares it, is an amalgamation, articulation and appreciation (One-stop Shopping Center) of both the extractable commodities, human skills, manpower, and other tremendous material resources within the vast African continent. The AfCFTA ratification was made by President Buhari recently, which prompts the addressing of this amiable economic cash cow, afresh. The advantages are as protruding and wide as the 1.2 billion burgeoning population of African continent. On the other hand, the few areas where the call for painstaking and dutiful deployment is needful to ward off shortfalls are drastically contained, apprehended.
The justification that prompted the governments imprimatur of international charter is primarily to promote peace, pursue unity of purpose and enhance cooperation among member states: each bona fide member state is required to implement the the provisions… The Launch Of The Pan African Payment and Settlement System – A New Dawn For Cross Border Financial Transactions In Africa. The modus operandi and anticipated mutual benefits between the transacting state partners shall be essentially determined within the framework of the body. Issues such as the price control mechanism, Free Trade Zones, custom clearing processes, registration of business establishments, etc, are responsibly and resolutely addressed.
Back on 1 January 2021, an epoch in the economic sector commenced in Africa with the kickoff and opening of trade under the African Continental Free Trade Area Agreement (“AfCFTA”) dispensation.
‘The Regulatory Procedure For Importation Of Goods Into Nigeria Pavestones Legal
Importation forms a key part of the Nigerian economy as statistics show that over US$53 billion worth of goods were imported from around the globe into the country in the year 2020′, commented a writer. For better understanding, it is deemed necessary heretofore to mention on finger counts the remarkable and invaluable gains of the African Continental Free Trade Area Agreement (AfCFTA). They include but not limited to…
1) Granted that hitherto, the bane of development in Africa nations is not just political retrogression but more critically her lack of indigenous productivity hence virtually dependent on exotic products both consumables and non edibles. The advent of African Continental Free Trade Agreement (AfCFTA), nevertheless as a flotilla project of Agenda 2063 and the brainchild of the African Union, has the installed capacity to boost expedited continental growth in all ramifications. No doubt, when operations are in earnest, AfCFTA guarantees regaining of the black continents self esteem in pioneering productivity and technological, scientific research and discovery, foster courage and competition, create disincentive for monopoly across the manufacturing industries belt line, and establish commitment, cooperation and confidence of Africans as the rightful originators and pushers of Agenda 2064. The natural effects will testify to the accomplishment of the United Nations 2030 Agenda, particularly the Sustainable Development Goals, SDGs.
2) Boastful of its bountiful and vigorous youth population blended with the labor-intensive and production-capital affirmed status, the present biting unemployment monster, as a common malady in Africa, will grow wings and vanish. AfCFTA is penned to mass provide job opportunities catering for the welfare and societal peace of the bulging youth population. This is like a nitch and feasible because extractive exports, on which Africa’s trade is currently dependent, are less labour-intensive than manufactured products and agricultural processed goods that will benefit most nations from within AfCFTA.
3) In accordance with an official document collated by the African Trade Policy Center (ATPC) of the Economic Commission for Africa (ECA) in collaboration with the African Union Commission, the African Continental Free Trade Area (AfCFTA) shall represent the watershed hub, combining the market activities of 1.2 billion people with a gross domestic product (GDP) of $2.5 Trillion, across all 55 member States of the African Union.
Quite significantly, it makes a drudgery project an exciting if not enticing program when one draws a similar plan of investment-developmental undertakings which China at their discretion has concluded for the African continent under the auspices of Forum on China-Africa Cooperation (FOCAC).
4) If truly the future is here with us, (as the slogan of a business entity claims) then consider the Africa continent population will attain 2.5 billion by 2050 (roughly 3 decades away) as predicted. It is also at this monumental figure that comprise 26 percent of what is projected the world’s working age agile population, with a flourishing economy estimated to grow twice as rapidly as that of the the now developed world. This Africa reconnaissance is proving holistic and healthy enterprise. History is replete with the fact that prime civilization originated from the African soil, by Africa sages then sold out as slaves by savages of alien civilization elements erroneously portraying themselves as superiors and sagacious. Bob Marley called it Africa Buffalo Soldiers.
5) This combined points are not mutually exclusive hence their harmonious relevance thus… Africa as an export capital hub and the viability of her Small and Medium Scale Enterprises. No developed or developing nation anywhere in the world has attained the top economic stability and advancement without the eminent featuring of her nation’s SMEs at the forefront. The crux of the matter is not the dearth of human or natural resources but the integrity and competency at the managerial level. Africa lackeys, figure head political leadership and proxies pushing for the interest and concerns of the Neo-colonialist elements, governments, international community and organizations have, till now, been our set-back barriers why real development keep eluding the bride Africa nations. She has been gangraped on several occasions by the ravenous and greedy Westernized wasteful and overbearing pretenders but like the proverbial cat with nine lives, the resilience and survival instinct is second to none.
‘With about 80 per cent of the region’s businesses tied to Small and Medium Scale Enterprises, they are key to growth across Africa. Studies have shown that these businesses usually struggle to penetrate more advanced overseas markets, but are well positioned to tap into regional export destinations and can use regional markets as stepping stones for expanding into overseas markets at a later point, via AfCFTA,’ eloquently outlined a political scientist and public analysist.
Other enviable benefits are Increased Jobs Opportunities, Supply Chain Infrastructure and Size of the Nigerian Market. Take for example, a nation like Nigeria that boldly and without controversy occupies the world’s sixth largest population cannot bargain for less in the dividends stakes distribution or margin when the proceeds are counted.
Fortnight ago, this writer received a telephone call preceeded by a frenetic chatting streams (like SOS) on one of my social media handles from a Nigerian business man resident in a neighboring country, Ghana. The message came as a request inviting me to beam my investigative media searchlight to Nigeria borders focusing on Nigeria Benin Republic axis. This is with the intention of ascertaining the official tariff for Nigerian Made (indigenous) soft drinks. The complaints sounds simple on the periphery but make no mistake about this, it is sophisticated, practically. A truck loads of the mentioned goods cost about N250,000 and upon payment the flow of screamed and cleared trucks in the traffic is without further hitches. But this has changed to something incredibly disgusting. A truck load of especially Nigeria locally made soft drinks now go for N1million and yet it takes eternity for the clearance process to be concluded. Oftentimes, the drinks having their expiration date clearly written on the containers, spends the validity periods on the road and arrives their export destinations dead on.
When combined curiousity with diligence drags you to conduct research of the possible massive employment opportunities within the Nigeria industrial sector owing to the high turnover of sales realized from the exported Nigeria made soft drinks to African countries, guarantee that your findings will leave you jaw dropping and stupefied. Yet, there are fifth columnist agents, unscrupulous regulatory officers who hide under custom uniforms to zealously work to tarnish government image, set back the hand of the clock and conspire to frustrate the well meaning programs of the President Mohammadu Buhari administration.
It did not terminate there, on the flip side at the same Seme border (Cotonou side) what previously cost 750,000cefas now gulps 5.5millioncefas. ‘If Nigeria Customs are callously and sadistically disposed enough to overcharge their exporting national products, it will amount to over righteousness on our side not to increase our tarrif in 7 folds’, most likely the loud thoughts of the Benin Republic custom chiefs.
Businesses around the continent currently face higher tariffs when they export within Africa than when they export outside it. The average is put at 6.1 per cent. Of course, AfCFTA is expected to progressively eliminate tariffs on intra-African trade, making it easier for African businesses to trade within the continent almost seamlessly and tap from the huge potential of a larger African market. Nigeria government should rise to its core responsibility and answer duty call towards mandating the custom chiefs across our nations borders to conduct their operations professionally and according to the dictates of the various international consortium Orajiaku, investigative journalist, writes from Lagos via 08035530832
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