Tag: AfCFTA

The rising cost of moving goods across countries in sub Saharan Africa is on the rise.

This development, experts and policy analysts say, may be inimical to the goals of African Continental Free Trade Area (AfCFTA), which is aimed at encouraging cheaper and seamless trade among African countries.

For instance, exporters along the west coast of the continent say it now costs over N10.84 million to move a truckload of goods valued at N100 million by road from Lagos to Accra. They blame the high surge on unofficial fees imposed by transit countries, especially Benin, Togo and Ghana.

This rising cost, driven by arbitrary checkpoints, bribes, and complex customs procedures, they warned, are crippling the competitiveness of Nigerian exports and undermining the promise of the AfCFTA.

According to a recent case study by the West African Association for Cross-Border Trade in Agro-Forestry-Pastoral and Fisheries Products (WACTAF), exporters pay an average of N10.84 million to move a N100 million truckload of goods, approximately $67,000 from Nigeria to Ghana by road—a route spanning roughly 1,726 kilometres.

The report indicated that most of these costs are incurred immediately after crossing into Benin, which WACTAF describes as the most expensive segment of the corridor.

“Exporters are required to pay a road maintenance fee of 0.85 per cent of the CIF value, which amounts to N850,000 for a truckload worth N100 million. That’s followed by a 0.5 per cent security tax (N500,000), a 0.25 per cent customs bond (N250,000), and a staggering 7.23 per cent statistics levy, which adds N7.23 million to the bill. A customs stamp fee of 0.4 per cent of the statistics levy adds another N28,920,” Executive President of WACTAF, Salami Nasiru, explained.

In addition to percentage-based levies, exporters, Nasiru said, must also pay flat fees including 75,000 CFA for truck tracking and further undocumented charges for customs clearing. Altogether, driving the cost of navigating Benin alone to N9.05 million.

According to him, “On reaching Togo, exporters face more levies, including a 1 per cent statistics charge (N1million), a 0.25 per cent customs bond, and a 15,000 CFA tracking fee. Miscellaneous costs like truck scaling are estimated at N50,000.”

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He noted that before even reaching Ghana, additional border charges at the Togo–Ghana border include a $200 administrative fee (N300,000), a 50,000 CFA tracking device fee, a 30,000 CFA transit board charge, and a 50,000 CFA processing fee, bringing the Togo and Ghana leg to about N1.78 million.

He stressed that the N10.84 million cost estimate excludes warehousing, inland haulage and insurance within Nigeria, thus intensifying the cost pressures on exporters.

Amid mounting frustration, exporters are questioning the on-ground impact of AfCFTA and demanding immediate enforcement of trade protocols to eliminate non-tariff barriers, harmonise customs operations, and improve transparency.

The President of the Association of West African Exporters and Marine Professionals (AWAEMAP), Olubunmi Olumekun, called for a rethink of Nigeria’s heavy reliance on road freight for regional trade.

Supporting the call for change, Olumekun, who also heads the Barge Operators Association of Nigeria (BOAN), said alternative transport options like barging could help reduce the burden.

He said: “We’ve used barges to transport goods to Togo, and it was more efficient and profitable than road transport. In some cases, neighbouring countries even hired Nigerian barges for months and paid well.”

Citing a personal experience, he added: “I took a barge to Togo, and in just a few days, we were back. Togo came here, rented our barges, and we operated there for months and got paid. There are some routes you can take where goods reach West African ports without ever going through the ocean.”

Stakeholders are now urging the Nigerian government and ECOWAS to act swiftly in enforcing regional trade agreements, removing rent-seeking practices, and and invest in alternative logistics infrastructure to ease the financial strain on cross-border commerce.

Nigeria is working towards fast-tracking the implementation of the African Continental Free Trade Area (AfCFTA) to unlock opportunities for businesses in the country across the continent.

Nigeria’s Minister of Industry, Trade and Investment, Hon. Jumoke Oduwole, made this known at the Nigeria Intra-African Trade Fair (IATF) 2025 roadshow.

Organised by African Export-Import Bank (Afreximbank), in collaboration with the African Union Commission (AUC) and the AfCFTA Secretariat, IATF is Africa’s premier trade and investment event that serves as a crucial platform for fostering economic growth, collaboration, and innovation across the continent.

The Nigeria IATF2025 roadshow is one of the five in a series of five high-level events in key cities including Nairobi, Accra, Johannesburg, and Algiers, ahead of the fourth edition of the biennial IATF that will be held in Algiers, Algeria from 4 – 10 September 2025, under the theme ‘Gateway to New Opportunities’.

The event, which was attended by over 700 people, focused on promoting intra-African trade under the theme: ‘Harnessing Regional and Continental Value Chains: Accelerating Africa’s Industrialisation and Global Competitiveness through AfCFTA.’

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The minister noted that intra-African trade has been improving. “Intra African trade exports grew by over 13 per cent from last year supported by new trade corridors and the initial success of AfCFTA’s guideline initiatives,” she said.

Jumoke, in a keynote address to government officials, the Nigerian trade community, business leaders and investors attending the Nigeria IATF2025 Business Roadshow, said Nigerian businesses are already key participants, exporting, ceramics, garments, pharmaceuticals and agro products across the continent.

 “As we talk about expanding and unlocking new trade markets, we must recognize the creative economy as a serious trade frontier. Platforms such as Creative Africa Nexus (CANEX) led by Afreximbank are proving that African culture is bankable not just beautiful,” she said.

Addressing the forum, Executive Director/CEO of the Nigerian Export Promotion Council (NEPC), Nonye Ayeni, noted that IATF offers an unparalleled platform for the exchange of trade and investment information and is Africa’s marketplace of ideas, opportunities, and partnerships.

“With frameworks like AFCFTA and platforms like IATF we now have the tools to bridge the trade gap, boost Intra African trade and tremendously grow our economies in a sustainable and inclusive way.

We need to build structured, sustainable and competitive value chains that can power inclusive growth both here in Nigeria and across the continent in Africa. We know that AfCFTA promises to be the largest single market in the world, connecting 1.3 billion people across 54 countries in Africa,” Ms Ayeni said.”

Building on this, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, Mrs. Kanayo Awani, highlighted the tangible results borne out of the trade fair across the continent and in Nigeria specifically.

 “In just three editions, IATF has achieved what once felt aspirational: over $100 billion in trade and investment deals, more than 70,000 participants, and 4,500+ exhibitors from across 130 countries. This is not just a conference, it is Africa’s trade engine, designed to connect our producers, unlock demand, and operationalise the promise of the AfCFTA.

 “And in every edition—whether in Cairo, Durban, or beyond, Nigeria has not just participated. Nigeria has led. At IATF2023 alone, Nigerian enterprises generated over $11 billion in signed deals, the highest of any country,” Mrs. Awani added.

IATF is a platform for boosting trade and investment in Africa. The last edition held in Cairo attracted nearly 2,000 exhibitors from 65 countries and generated $43.7 billion in trade and investment deals.

Some of the activities lined up for the week-long IATF2025 include a trade exhibition by countries and businesses; the CANEX programme with a dedicated exhibition and summit on fashion, music, film, arts and craft, sports, literature, gastronomy and culinary arts.

There is also a four-day Trade and Investment Forum featuring leading African and international speakers; and the Africa Automotive Show for auto manufacturers, assemblers, original equipment manufacturers and component suppliers.

Special Days will also be held at IATF2025, dedicated for countries as well as public and private entities to showcase trade and investment opportunities, and tourism and cultural attractions, as well as Global Africa Day to highlight commercial and cultural ties between Africa and its diaspora, featuring a Diaspora Summit, market and exhibition, cultural and gastronomic showcase.

Also planned is a business-to-business (B2B) and business-to-government (B2G) platform for matchmaking and business exchanges; the AU Youth Start-Up programme showcasing innovative ideas and prototypes; the Africa Research and Innovation Hub @ IATF targeting university students, academia and national researchers to exhibit their innovations and research projects.

Others are the Trade Exhibition offering large corporations and SME’s the opportunities to showcase their goods and services, the Trade and Investment Forum, a four day conference featuring sessions and training discussing trade opportunities and barriers.

There are also the Creative Africa Nexus (CANEX), a showcase of African and Diaspora creative talent, the Special Days segment offering countries, private and public sectors the opportunity to sponsor their special event on specific days, the Africa Automotive show, a platform for auto manufacturers to exhibit their products and interact with potential buyers, IATF Virtual, an interactive online platform that will continue after the live event is over, Diaspora Day highlighting the commercial and cultural ties between Africa and its diaspora and the African Sub-Sovereign Governments Network (AfSNET) to promote trade, investment, educational and cultural exchanges at the local level.

University Mohammed VI Polytechnic (UM6P) has declared its commitment to empowering African students to export skilled manpower for the continent’s rapidly growing agricultural market, especially in fertiliser plant management and related industries. The initiative aligns with the transformative opportunities presented by the African Continental Free Trade Area (AfCFTA).

The AfCFTA, if fully implemented, is poised to be a game-changer for the continent. The World Bank projects it could boost regional income by a staggering $450 billion, accelerate wage growth, particularly for women, and lift 30 million people out of extreme poverty by 2035.

Chief of Staff and Director on Institutional Affairs at UM6P, Khalid Baddou, emphasised the university’s readiness to upgrade the capacities of industry players to explore jobs in the African fertiliser market, currently estimated to be worth $16 billion.

He said the African Union presents a significant opportunity for intra-African trade and economic growth, adding that the agricultural sector, a cornerstone of many A economies, stands to benefit immensely from streamlined trade policies and reduced tariffs.

In recent years, there has been a significant increase in local manufacturing of mineral fertiliser with over $15 billion of investments by the private sector. He explained that there has led in increase in the number of fertiliser manufacturing and blending plants established by OCP, Dangote and other players within the sector.

“The long-term vision of the partnership extends beyond Nigeria, with UM6P expressing its commitment to training fertilizer professionals from across Africa. As new fertiliser plants emerge in various African countries to meet the growing demand, a skilled workforce will be essential for their efficient and sustainable operation,” he said.

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Recognizing this potential, he said UM6P has proactively invested in building robust capacities within the fertilizer value chain.

According to him, the university boasts state-of-the-art research laboratories, pilot plants, and a dedicated faculty comprising leading experts in soil science, plant nutrition, chemical engineering, and sustainable agriculture. The comprehensive approach, he said is  allows UM6P to conduct cutting-edge research, develop innovative fertilizer formulations tailored to African soil conditions, and assess the environmental impact of fertiliser production and use.

The collaboration between UM6P and Nigeria,he continued, will  encompass several key areas, including capacity building, research and development, and industrial development support.

 A central focus, he  added  will be on training a new generation of African professionals equipped with the knowledge and skills to manage and operate modern fertiliser plants.

 He said UM6P plans to offer specialized training programs, workshops, and exchange programmes for Nigerian and other African technicians, engineers, and managers. These programmes will cover various aspects of the fertilizer industry, from plant design and operation to quality control, logistics, and marketing.

Head, College of Agriculture and Environmental Sciences , Bruno Gerard said there was a need to  enhance the technical expertise within the  fertiliser industry to  pave the way for greater intra-African collaboration and trade.

He said UM6P’s proactive engagement in the sector aligns with its broader mission to be a catalyst for innovation and human capital development in Africa.

 UM6P,according to him,  is positioning itself as a leading center of excellence for fertilizer education and training in Africa, contributing to the development of a vibrant and competitive continental fertilizer industry.

 “The college’s research agenda is ambitious and deeply relevant to the pressing challenges facing the African continent. Key areas of focus include  agro-bioscience. This encompasses biodiversity exploration for pharmaceutical and cosmetic applications, as well as crop improvement with a strong emphasis on resilience to abiotic stresses like drought and increased temperatures. Pre-breeding efforts are underway to identify and characterize genetic diversity in both cultivated and wild species to enhance their adaptability. We also want to address the  predominantly subsistence nature of farming in many parts of Africa, the college is dedicated to research that promotes commercial orientation while ensuring food security,” he said.

According to him, the college also recognises the critical role of agricultural extension services in bridging the gap between research and practice. “With a current shortage of extension agents across the continent, the rise of digital tools offers potential for wider reach, but well-trained personnel remain indispensable, particularly for supporting illiterate farmers. The ideal extension agent should provide advice on cropping practices, input use (including fertiliser), and market access, while minimising financial and production risks for farmers. Training in crop protection is also vital in the face of climate change-induced shifts in pests and diseases.

The realisation of the African Continental Free Trade Area (AfCFTA’s) full potential largely depends on strategic interventions that support the growth and active participation of Africa’s Small and Medium-scale Industries (SMIs), a new report by Pan-African Manufacturers Association (PAMA) has said.

The report said SMIs are the backbone of many economies, including high and low income nations, as they often account for a substantial share of employment, public revenue, and industrial output growth, and are critical to accelerating inclusive growth, poverty reduction and economic stabilisation.

The report titled ‘African Continental Free Trade Area: Impact and Opportunities Assessment for Africa’s Small and Medium-scale Industries (SMIs),’ said this is particularly evident in Africa, where SMIs, for instance, account for around 80–90 per cent of employment (including jobs created in the shadow sector).

“These promises and outcomes of SMIs align with the shared aspirations that drive the AfCFTA framework, which aim to establish a single continental market to promote Africa’s economic stability and prosperity,” the report, which was made available to The Nation, said.

PAMA, established in 2018 as a Continental Business Membership Organisation (BMO), is the voice of manufacturers in Africa and is at the forefront of promoting Africa’s industrial transformation under the African Union’s Agenda 2063.

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Its core goal is to represent, protect, and promote the interests of all manufacturers in African countries through coherent advocacy and partnership with key strategic stakeholders and players in the manufacturing sector.

The new report by PAMA presents findings from a recent research survey assessing the impact and opportunities of AfCFTA for SMIs. The survey gathered insights from 207 respondents from diverse manufacturing sub-sectors, including food and beverages, textiles, rubber and plastic, and chemicals.

It explored key areas such as awareness level, trade practices, challenges, and opportunities for SMIs in the context of AfCFTA. It also provided an empirical understanding of SMIs’ readiness to participate in AfCFTA and their expectations from the agreement.

The Association’s report stated that while 96 per cent of SMIs indicate readiness to engage in intra-African trade, infrastructure deficits, low production volumes, limited access to finance, and knowledge gaps on AfCFTA’s protocols continue to constrain effective participation.

The PAMA, which is led by Nigeria’s Engr. Mansur Ahmed and Segun Ajayi-Kadir as Interim President and Interim Co- Secretary, respectively, emphasised that “Without targeted interventions, especially in trade facilitation, export clustering, and regulatory awareness, the benefits of AfCFTA risk being under-realised.”

The report identifies critical areas for policy intervention to address these challenges. Recommendations include investing in infrastructure and logistics, simplifying customs and regulatory processes, and providing financial support mechanisms.

Other recommendations include adopting export clustering or aggregation model for SMIs with similar products and challenges of low production who want to export, and deepening capacity-building programs.

According to the report, these measures aim to empower SMIs to compete effectively in the expanded market while ensuring inclusive growth.

Furthermore, the report underscores the need for a level playing field to mitigate the risks of unfair competition, particularly from larger firms or industries. “Strong regulatory frameworks and enforcement mechanisms are essential to protect the interests of SMIs and promote fair trade practices,” it stated.

While the report presents detailed recommendations and tailored policy implementation strategies or a roadmap, it serves as a call to action to prioritise the needs of SMIs, enabling them to thrive in the AfCFTA environment and contribute significantly to Africa’s economic integration and prosperity.

The report concluded that the AfCFTA holds immense potential to drive economic transformation and industrial growth in Africa vis-à-vis on the consideration of the full participation and integration of the SMIs.

It “further stated that “despite challenges, targeted interventions and collaborative efforts among policymakers, regional and development institutions, inter-governmental bodies, and industry stakeholders can help unlock the full benefits of a single market in Africa for the continent’s industrial transformation.”

The African Tax Administration Forum (ATAF) has called for the adoption of tax policies that will secure long-term government financing while supporting trade liberalisation under the African Continental Free Trade Area (AfCFTA).

ATAF made its position known at the 57th Session of the Economic Commission for Africa (ECA): Conference of African Ministers of Finance, Planning, and Economic Development, which took place from 12 to 18 March 2025 in Addis Ababa, Ethiopia.

At the gathering of ministers, policymakers, and technical experts, ATAF addressed a key challenge facing many African governments—the financial implications of reducing tariffs as part of AfCFTA implementation.

Given that numerous countries across the continent rely heavily on trade taxes as a significant source of revenue, concerns were raised about how to balance the push for deeper economic integration with the need for sustainable domestic financing.

ATAF advocated for comprehensive tax policy reforms that would enable countries to maintain fiscal stability even as they reduce dependence on trade taxes.

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The Forum called attention to the importance of harmonising tax systems across African nations, noting that a coordinated approach is vital to managing the evolving trade landscape brought about by AfCFTA.

Participants at the conference deliberated on strategies to strengthen domestic revenue mobilisation, including optimising domestic taxation, enhancing the efficiency of indirect tax measures, and leveraging digital solutions to modernise tax collection processes.

ATAF urged African governments to broaden their tax bases and invest in improved tax administration systems that will enable them to better capture revenue, especially in a context where tariff revenues are expected to decline.

One of the key takeaways from the conference was the growing consensus that the implementation of AfCFTA requires more than just reducing trade barriers. Ministers stressed that for AfCFTA to deliver meaningful economic transformation, African countries must address structural issues in tax and customs policies.

These policies play a crucial role in facilitating intra-African trade and ensuring that the gains from trade liberalisation translate into tangible development outcomes.