Nigerian exporters highlight barriers to regional trade under AfCFTA, urging stronger efforts to achieve economic integration and boost intra-African trade.
Africa’s Intra-Trade Struggles
The African Continental Free Trade Area (AfCFTA) was launched with the promise of transforming Africa into a trade powerhouse. However, exporters are voicing concerns about the continent’s underwhelming trade performance under the agreement.
Nigeria’s exports to Africa accounted for only 12.13% (N2.49tn) of total exports in Q3 2024, lagging behind Europe (45.07%, N9.23tn) and Asia (25.31%, N5.18tn), according to the National Bureau of Statistics.
Within Africa, ECOWAS countries received N1.54tn, with Ivory Coast (N662.71bn), South Africa (N621.68bn), and Togo (N574.93bn) as key destinations.
Spain was Nigeria’s top export destination overall (N2.27tn, 11.07%). Other leading non-African export destinations included the U.S. (8.25%, N1.67tn), France (7.75%, N1.59tn), the Netherlands (7%, N1.43tn), and Italy (6.72%, N1.37tn).
Challenges Hindering AfCFTA’s Success
Key issues like inadequate infrastructure, cumbersome border processes, and fragmented regulations continue to undermine AfCFTA’s implementation. Exporters highlight that these challenges create inefficiencies, increasing trade costs and hampering economic integration.
In an interview with Punch, CEO of Dasun Integrated Farms Limited, Bosun Solarin, said, “You can even get some things to Europe or the US cheaper than you will to other countries in Africa. I’ve sent goods to Liverpool in the UK in 24 hours, but it can take seven working days to Ghana. The cost is so much, and the delays at borders are frustrating.”
Solarin highlighted the experience of moving goods between Dark and Lagos, saying, “The stretch of trucks from Senegal to Mali and then to Ivory Coast was disheartening. While sending goods by road might seem economical, the risks and inefficiencies often outweigh the benefits.”
Creative Director of JeriHouse of Design, Olaronke Olajide, said of trying to export to Mozambique from Nigeria, “It’s easier to send products to the UK or the US than within Africa. When I attempted to send something to Mozambique, it felt like a war zone. Ultimately, the item never even got there.”
Speaking to Punch, Deputy Director of Market Access at the Nigerian Export Promotion Council, Peter Njoku, said that “Many African countries have different currencies, and there’s no single currency for trade like the dollar or euro in other regions.” Njoku also claimed that there were other issues such as complex paperwork and regulations.
Infrastructure and Logistics: A Critical Need
Infrastructure remains a pressing issue for African trade. Many regions lack the reliable roads, ports, and rail systems needed for efficient movement of goods. Exporters stress that without investment in infrastructure, AfCFTA’s goal of seamless regional trade will remain elusive.
Logistics is another hurdle. Long delays at border crossings and inefficient customs processes often deter businesses from leveraging AfCFTA’s potential. “We need a harmonized trade system that eliminates these barriers,” says an exporter based in West Africa.
Policy Alignment and Political Will
Disparate trade policies across the continent further complicate regional trade. Harmonizing standards, tariffs, and regulations is essential for AfCFTA’s success. Exporters argue that without clear and unified policies, the agreement will struggle to foster meaningful economic growth.
Additionally, political will plays a significant role. Member states must commit to aligning their domestic policies with AfCFTA’s objectives and provide the necessary resources to support exporters.
Driving the Future of AfCFTA
To unlock AfCFTA’s potential, a multi-faceted approach is essential. Investments in infrastructure, policy reforms, and stronger public-private partnerships can pave the way for progress. Exporters also call for innovative solutions like digital platforms to streamline cross-border transactions and improve supply chain efficiency.
While the road ahead is challenging, AfCFTA still holds immense promise for transforming Africa’s trade landscape. Addressing these barriers could not only boost intra-African trade but also enhance the continent’s global competitiveness, creating new opportunities for businesses and investors alike.
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