Economic experts have stressed the need for state governments to strengthen inter-state trade ahead of the full commencement of the Africa Continental Free Trade Area (AfCFTA).
At the two-day Africa Business Conference (ABC) organised by BusinessDay, which commenced on Tuesday, the experts noted that the challenge of making the AfCFTA effective is not the signing of the agreement but creating competitive economies of scale.
Managing director, Edo State Investment Promotion Office, Kelvin Uwaibi, emphasised why state governments must start producing specific products that can be traded with other states, adding that this will strengthen Nigerians participation in the AfCFTA.
According to him, many products are being illegally exported and branded as products from other countries.
“We should start from inter-state trade, with the resources we have in Nigeria, there is a need for sub-nationals to start producing specific produce.
“There are opportunities in each state and when we start trading among ourselves as sub-nationals it will be easier to trade under the AfCFTA. We can start trading our products in supermarkets,” he said.
Read also: AfCFTA constraints beyond documentation – Experts
He also stated the need to promote the use of technology by supporting the young population driving the use of technology.
According to him, technology will play a huge role in payment systems.
He said “an easy payment platform will be the best and first way to start, technology will play a huge role in this, we need to strengthen the payment system and get more partners on board. If we can achieve that, then we can go with the regional currency.”
Also speaking, Kunle Elebute, chairman, KPMG Africa said that African countries, including Nigeria, are commodity-based, but lack the capacity for processing and manufacturing.
According to him, the continent is still faced with issues relating to logistics and transportation, ease of trade, lack of shipping route among others.
“AfCFTA is a great initiative, but what can we describe as the underlining economic activity that can be exchanged under trade? Africa is simply the domain for the global economy to take out commodities and process,” Elebute said.
