AfCFTA implementation: trade expert says participation of private sector vital

Ukaoha,
also president of the National Association of Nigerian Traders, told
the News Agency of Nigeria (NAN) in Abuja on Monday, that from all
indications the private sector was yet to be involved in the
implementation of AfCFTA.

“The
Continental Free Trade Agreement (CFTA) negotiation process gave rise to
an Implementation Framework Agreement recently signed in Kigali, Rwanda
by as many as 44 member countries of the African Union (AU).

“But
the provisions of Article 9 (Part III) of the framework establishing
the AfCFTA, neglected the composition and role for the private sector.

“This
is a bold testimony to the fact that indeed the negotiation has been
conducted and concluded without the business community,” he said.

Ukaoha
explained that all over the world, trade agreements were always secured
for the private sector actors who were relied upon for its
implementation.

He said the key practical knowledge and transaction of trade and commerce were the core business of the private sector actors.

“These
actors are the direct investors of their hard earned funds, they are
the producers/manufacturers, marketers/distributors and sometimes
largely form the consumer populace of goods and services.

“To
this end, actors in the private sector are pictured and brought into
the negotiation and implementation table in acknowledgement of their
position as the immediate brunt bearers of trade and economic
agreements,” Ukaoha said.

He said
there was no doubt that the private sector in Africa remained a major
engine for sustainable economic growth and development, job creation and
poverty alleviation.

According to
Ukaoha, the sector accounts for about 80 per cent of the total
production, two thirds of investments, and three quarters of credit, and
employs 90 per cent of the working population.

He
said 90 per cent of the firms within the African private sector were
Small and Medium Enterprises (SMEs) which promoted productivity through
the support of various value chains.

“It
is this sector that promotes cross-border trade which the AfCFTA is all
about and seeks to address including the challenges of tariffs and
non-tariff barriers, complex customs and trade procedures.

“Others include lack of access to finance, high transportation costs and lack of access to Information.

“In
the light of the above, for AfCFTA to succeed, the private sector must
therefore be given a prominent role in its implementation,” Ukaoha said.