AfCFTA Poised to Stimulate $35 Billion Annual Trade Increase
By Patience Ikpeme
The African Continental Free Trade Area (AfCFTA) is set to revolutionize trade within the African region, potentially increasing intra-African trade by $35 billion annually.
This was disclosed by the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka Anite, at the 30th African Organisation for Standardisation (ARSO) General Assembly in Abuja.
Addressing delegates on behalf of the Minister, the Permanent Secretary of the Ministry, Ambassador Nura Rimi, highlighted the assembly’s theme, “Educate an African fit for the 21st Century – Building a Quality Culture – One Market, One Standard,” underscoring the critical role of standardisation in fostering sustainable development, innovation, and export-oriented production.
Dr. Uzoka Anite emphasized that the AfCFTA is designed to significantly boost African economies, with agriculture and industrial exports projected to rise by $4 billion (7%) and $21 billion (5%) respectively. The trade agreement is also anticipated to stimulate a GDP growth from $1.7 trillion to $2.6 trillion, and increase consumer spending from $860 billion to $1.4 trillion, potentially lifting millions out of poverty.
“The AfCFTA, by reducing trade costs and facilitating business expansion, offers vast opportunities for African businesses, especially Small and Medium Enterprises (SMEs), to thrive in the continent’s rapidly expanding market,” stated Dr. Uzoka Anite. “It lays the groundwork for an African Single Market, benefiting 35 of the 43 nations that have ratified the agreement and are members of ARSO through reduced tariffs and non-tariff barriers.”
Currently, Kenya, Rwanda, Cameroon, Ghana, Tanzania, Mauritius, Tunisia, and Egypt are piloting the initiative, aiming to overcome longstanding obstacles such as weak productive capacities, limited economic diversification, and high tariff and non-tariff trade costs that have historically hindered the competitiveness of African firms.
Dr. Uzoka Anite called for a commitment to standardisation, stating, “Standards set Good International Best Practices in every sector of life. Adherence to these standards promotes productivity, trade, and ensures predictability, transparency, and openness, forming a basis for technical regulations.”
Dr. Ifeanyi Chukwunonso Okeke, Director General of the Standards Organisation of Nigeria (SON), reinforced the significance of the assembly’s theme. He praised the Nigerian government’s “Renewed Hope” initiative, which aims to transform the educational sector by increasing access to quality education, improving infrastructure, and investing in teachers.
“The government’s commitment to educational reform underscores our understanding that education is the foundation of national development,” Dr. Okeke stated. “At SON, we are dedicated to integrating this educational roadmap with our goal of fostering a quality culture and transferring knowledge through standardisation, contributing to the Sustainable Development Goals and ensuring no African child is left behind.”
Professor Alex Dodoo, President of ARSO, expressed concerns over Africa’s underutilization of its natural resources and population potential. He called for a shift in the continent’s approach, urging African leaders to address these issues head-on and create solutions tailored to the African context.
“African leaders should educate Africans with the realities of Africa and focus on creating basic infrastructures and wealth,” Professor Dodoo asserted. “It’s time to take control of our continent and change the narrative.”
The 30th ARSO General Assembly highlighted the importance of unity, standardisation, and education in driving Africa’s economic growth and development, setting a hopeful tone for the future of intra-African trade and cooperation under the AfCFTA framework.
