KEY POINTS
- AfCFTA could increase African trade but needs shipping investment.
- Around 100 ships are essential to meet rising demand.
- Investment in Africa’s Blue Economy could drive economic recovery.
For African economies to maximize benefits from the African Continental Free Trade Area (AfCFTA) Agreement, an estimated $3.4 trillion trade opportunity, they must urgently invest in maritime infrastructure. According to Capt. Sunday Umoren, Secretary-General of the Abuja MoU, about 100 ships are needed to handle the anticipated surge in trade demand. His remarks, made during an event organized by the Nigerian Association of Master Mariners, emphasized that the continent’s shipping capabilities are essential for AfCFTA’s success.
The Punch reported that, Umoren highlighted that, once fully implemented, AfCFTA could increase intra-African freight by 28 percent and maritime freight demand by 62 percent. However, Africa’s current infrastructure is insufficient to support this growth. “A substantial increase in traffic flows is anticipated across all transport modes in Africa in the coming years,” he said. “This will require enormous investments in transport equipment and infrastructure, including the addition of 100 vessels if AfCFTA is fully realized.”
As a cooperative body with the International Maritime Organization, Abuja MoU oversees maritime agreements across 22 countries bordering the Atlantic Coast of Africa. Umoren noted that AfCFTA offers a significant opportunity to develop Africa’s Blue Economy, which encompasses economic activities related to oceans and coasts. Scholars, industry leaders, and African ship-owner associations agree that enhanced shipping infrastructure could provide a foundation for sustainable growth.
AfCFTA Expected to Boost Intra-African Trade by 20 Percent
The potential impact of AfCFTA on intra-African trade is substantial. At present, intra-African trade makes up only 10 percent of the continent’s total trade, far lower than in Europe and North America. The African Union anticipates that AfCFTA could raise this figure to 20 percent through increased regional trade. According to the United Nations Economic Commission for Africa, implementing AfCFTA could double Africa’s maritime freight from 58 million tons to 131.5 million tons. Meeting this demand requires major investments in ships, port facilities, and transportation networks across the continent.
Umoren acknowledged that Africa faces several hurdles to achieving this vision. He cited inadequate financing mechanisms, flawed economic policies, and a heavy reliance on raw material exports as significant obstacles. In many African nations, outdated logistics infrastructure and a lack of quality manufacturing capabilities make it challenging to compete with global trade standards.
Challenges and Investments Needed for Africa’s Blue Economy
To address these challenges, Umoren emphasized the need for investments in manufacturing, logistics, and shipping services. He noted that AfCFTA presents a unique opportunity to develop a green economic recovery that can strengthen Africa’s Blue Economy. However, this requires coordinated actions among African governments and stakeholders to create resilient economies capable of supporting regional and global trade.
“Trade can only thrive when goods move efficiently from producer to consumer,” Umoren said. “Building robust shipping infrastructure is key for Africa to fully leverage AfCFTA and drive economic transformation.”
