Former Nigeria President Chief Olusegun Obasanjo has asked Africa countries to look inward and explore the trading opportunities available in Africa instead of looking for aid and trading more with other continents. Obasanjo who is the Chairman of the Advisory Committee of the Intra Africa Trade was delivering an open remark in Cairo. He said that deals worth over $27 billion are expected to be concluded at the first ever Intra African Trade Fair (IATF). He said that African countries that believe in the continent’s progress should sign the African Continental Free Trade Agreement. He said “A situation where trade among African countries is a paltry 18 per cent, compared with 52 per cent among Asian countries, and 68 per cent among European countries, calls for a drastic positive action on our part.”
According to him “The trade fair follows hot on the heels of the African Continental Free Trade Agreement (AfCTA) which aims to pioneer, support, facilitate and drive free trade and economic development across our continent. Increased trading among ourselves in Africa will enhance increased trade with other parts of the world.” Obasanjo praised the efforts of Afreximbank and African Union (AU) towards organising the event. “Afreximbank and the AU have worked tirelessly since the announcement of the trade fair in Kigali in March this year.” He said he shared the conviction that “the trade fair will contribute immensely towards the implementation of the AfCTA which will play a vital role in transforming businesses and economy, creating employment and generating wealth, and building prosperity across the continent.”
He told the audience that the fair will be the first instrument towards implementing the AfCTA “which is set to transform the way we do intra-African trade. It is therefore imperative that all African governments who believe in African progress must not only sign the AfCTA, but ratify it at once, to get the 22 countries whose ratification will signal the commencement of the implementation of the agreement. Without uninhibited trading among African countries, intra-African trade fair will amount to sham. Africa needs to focus on what trade is needed, where the markets are, the size of the market, and the standards required by those markets, how and where to implement the value chains that serve the market.
“We also need to fashion out the medium of payment within Africa for intra-African trade expeditions. These factors need to be combined in ensuring that there is commercially viable return and that the markets chosen are sustainable.” He said when Africa actualises its potential, it will earn more respect from the human race. Professor Benedict Oramah, President, Afreximbank, on his part, gave an inspirational speech on Africa making history at the IATF, reversing the colonial strategy of divide and rule, adding that the event signalled Africa’s readiness for economic independence. Oramah said 1,150 exhibitors from 80 countries would participate in the fair.
“We converge in Egypt, the land of the Pharaohs, the cradle of civilisation, to usher in a new era for Africa. We do so united by a common purpose; driven by a common desire; propelled by a commitment to use the force of history to change the course of history. We gather here as brothers, sisters and friends to say a resounding “Never Again” to the divisions imposed on us by history and which have dug us into a depth of misery. While others look across their borders to seek friends and partners, we look into the horizon to find ours! But this week, here in Cairo, thanks to the benevolence of His Excellency, President Abdel Fattah El-Sisi, we look inwards with pride, we look across our borders to embrace our common heritage. The tremendous networking effects that this gathering presents equips us with the potent force to begin to dismantle the well laid out colonial structures that have disintegrated Africa for close to a century. Anyone doubtful of the urgency of the events of this week, the first ever intra- African Trade Fair, should be reminded of the words of Mr. Albert Sarraut, a former Colonial Administrator, who aptly captured the colonial strategy, and I quote:
“Economically, a colonial possession means to the home country simply a privileged market whence IT WILL DRAW THE RAW MATERIALS IT NEEDS, DUMPING ITS OWN MANUFACTURES IN Moreover, by strictly imposing on its colonial dependency the exclusive consumption of its manufactured products, THE METROPOLIS PREVENTS ANY EFFORTS TO USE OR MANUFACTURE LOCAL RAW MATERIALS ON THE SPOT, AND ANY CONTACT WITH THE REST OF THE WORLD. THE COLONY IS FORBIDDEN TO ESTABLISH ANY INDUSTRY, ………., OR TO DO BUSINESS WITH THE NEIGHBOURING TERRITORIES for its own enrichment across the customs barriers erected by the metropolitan power.”
“Aware of the enormity of the structural barriers imposed on us by history, the late Dr. Kwame Nkrumah, in his 1963 speech on the occasion of the establishment of the Organization of African Unity (OAU), asked, and I quote: “By belonging to different economic zones, how will we break down the currency and trading barriers between African States, ………. How will we retain our own capital for our development? How will we establish an internal market for our own industries?” Your Excellencies, Distinguished Ladies and Gentlemen, the answer to the questions posed by Dr. Nkrumah is obvious. We must reverse- engineer the colonial strategy of divide-and-rule; we must create an integrated market for our continent.
“When Their Excellencies, African Heads of States, signed the African Continental Free Trade Agreement (AfCFTA) in March 2018, they fulfilled the Political Will and sent a strong message to the World that Africa was ready to chart a new course, a path to economic independence and a look inward for industrial growth; but that was only the beginning! We need to turn the Political Will into economic dividend; to integrate both on paper and on the ground; to build the inter-connectedness that only markets can unleash. Access to trade information is key to this process. Of what significance will it be, if we remove trade barriers but there is nothing to trade?; of what benefit is it, if we open our borders but African businesses remain ignorant of the opportunities that exist and what goods are available in other countries?; of what use will it be if the AfCFTA becomes operational and Kenya continues to import leather from outside Africa that Burundi produces; that Nigeria imports pharmaceuticals from outside Africa that Egypt produces, all because of lack of information? Since Afreximbank made the promotion of Intra- African trade the arrow-head of its strategy, we have discovered the explosive power of trade information. That is why we have been able to make it possible for Egyptian and Tunisian companies to implement over 2.5 billion US dollars in supply and construction contracts across Africa; that is why we have opened thriving Egypt-Nigeria pharmaceutical trade; that is why we have been able to facilitate the partnership that has led to the Cape-to-Cairo Fibre-optics cable attracting over 400 million intra-African investments; and that is why we are fostering a furniture supply chain between Gabon and Egypt, attracting over 150 million US dollars in investments.
“Your Excellencies, Distinguished Guests, Ladies and Gentlemen, the Intra-African Trade Fair, perhaps one of the largest Trade Exhibitions ever in the continent, is an important step in resolving the information problem. There are almost 1,100 exhibitors from about 42 country pavilions; several thousand deal-makers with expected value of trade and investment deals to be signed exceeding 25 billion US dollars. There will also be 2 Country Days that promise great opportunities and entertainment; and a conference running alongside that boasts over 300 speakers and over 2500 delegates. Your Excellencies, you will agree with me that Africa has finally arrived!
By creating this platform for interaction among African businesses, banks, artists and others, we are building the foundations for the emergence of robust continental supply chains. I foresee a tectonic shift in the dynamics of Africa’s trade as Africans begin to exploit the rich and diverse African market. As the continent becomes a sustainable market, private investments in infrastructure will follow. Today, distinguished ladies and gentlemen, I am proud to declare that we stand at the turning point of history. We are most grateful to His Excellency President Abdel-Fattah El-Sisi, President of the Arab Republic of Egypt, for supporting this initiative. His leadership in the creation of the African Continental Free Trade Area (AfCFTA) is a testament to his belief in the power of regional integration in driving Africa’s development.
