Nigeria is gearing up to initiate formal exports of locally produced commodities to South Africa, Rwanda, Cameroon, and Kenya starting April 2024. This move is facilitated under the Guided Trade Initiative (GTI) of the African Continental Free Trade Area (AfCFTA), heralding a new era of trade relations within the continent.
The AfCFTA, a landmark free trade agreement among 54 of the 55 African Union nations, is poised to create the world’s largest free trade area by participating countries. This initiative aims to boost intra-African trade, promote industrialization, and pave the way for a unified market of over a billion people.
Olusegun Awolowo, Executive Secretary of the National Action Committee on AfCFTA, shared insights into this strategic development at the Abuja stakeholders workshop on the AfCFTA digital trade protocol. He outlined that while trading under AfCFTA’s broad framework has yet to commence due to ongoing protocol negotiations, the GTI represents a proactive measure to kickstart trade activities among African countries outside their regional blocs.
Awolowo explained that Nigeria, by joining the GTI, is committing to a historic step of officially exporting to key African markets, moving beyond informal trade practices that have characterized the continent’s commerce. The initiative will see Nigerian enterprises, ranging from large corporations to SMEs, embark on formal trading activities with counterparts in South Africa, Kenya, Cameroon, and Rwanda.
The adoption of the GTI and the broader AfCFTA protocol marks a crucial milestone in Africa’s journey toward economic integration and digital transformation. It underscores a collective commitment to leveraging digital technologies to boost intra-African trade and drive sustainable economic growth. This paradigm shift is expected to open up significant opportunities for job creation, wealth generation, and socio-economic empowerment, particularly among the African youth demographic, which stands to benefit immensely from the digital economy’s potential.
Bashir Maidugu, Senior Special Assistant to the President on Legal, Research, and Compliance Matters, emphasized the importance of engaging Nigerian youth in the AfCFTA Digital Trade. Nigeria’s leading position in Africa’s digital e-commerce space, highlighted by the success of companies like Flutterwave, Konga, and Jiji, presents a formidable platform for the country to bolster its economy through digital trade under AfCFTA.
Maidugu called on the government to actively develop the skills of Nigerian youth, who are instrumental in driving digital trade. Investments in education, research institutes, and e-learning centers were cited as crucial strategies to maintain and enhance Nigeria’s dominance in the digital commerce arena.
As Nigeria prepares to embark on this significant trade initiative under AfCFTA, the move is heralded as a strategic leap toward actualizing the vision of a prosperous, integrated, and united Africa. The formal commencement of exports to South Africa, Rwanda, Cameroon, and Kenya under the GTI not only symbolizes Nigeria’s readiness to embrace the opportunities presented by AfCFTA but also represents a significant step towards fostering intra-African solidarity, economic resilience, and collective prosperity.
