Trade

Abuja, March 7, 2024: Leonard Oestergaard, Resident Representative Friedrich- Ebert-Stiftung Nigeria Foundation, says trade is pivotal to the development of Nigeria and Africa as a continent.

Oestergaard said this at a media briefing on Wednesday in Abuja organised to summarise a Policy Focus Book “ How Africa Trades”.

The meeting was organised by the Foundation in collaboration with the London School of Economics.

According to Oestergaard, trade is of high importance and should be priotised if we must achieve the Sustainable Development Goals (SDGs) in Africa.

He, therefore, urged the Federal Government to  accord priority attention to trade so it could contribute to national development.

Meanwhile, an Economist. David Luke urged the Nigerian government to ensure reduced cost of capital for manufacturers to boost trade in the country.

Luke, a Professor in Practice and Strategic Director, Firoz Laiji Institute for Africa at the London School of Economics (LSE), said the increased capital was a major challenge to trade.

While commending the government for its trade reforms, the professor urged that it should be accompanied by reduced cost of borrowing for business ease.

Luke said: `the reforms that are now being done in Nigeria need to be accompanied very quickly with reducing the cost of borrowing.

“This is because if the productive sector is to respond to the new opportunities, the cost of capital needs to be reduced.

“And this is normal practice when you float a currency.

“ In other countries, we have seen that government has also stepped in very quickly to alleviate the problems.

“Especially in regard to the cost of capital, because that is how businesses can respond to the new opportunities,” he said.

According to Luke, the African Continental Free Trade Area (AfCFTA) is coming up at the right time for Nigeria with these reforms that are going on.

He said this was because it made Nigerian exports cheaper in the African market. Moreover, it sends that signal that imports into Nigeria is becoming more expensive.

“So a lot of what is being imported that can be produced locally should be produced as such.

“ The continental market is an attractive market and also should be seen as an important part of these reforms.

“But as we all know, the AFCFTA is struggling with implementation, and Nigerian leadership is needed here,” Luke said.

The professor cited instances in other climes where countries had played similar leadership roles like France and Germany in Europe and Singapore, Indonesia, in Asia.

“So Nigeria is in a very good position to take the leadership for opening up the continental market, which can only make all of us Africans much more prosperous,” he said.

Abuja, Dec. 27, 2023: East African Community member states are trading more with countries outside the bloc owing to persistent trade disputes and non-tariff barriers (NTBs), which are choking intra-regional trade as well as undermining the regional integration agenda.

Disclosures by the EAC Secretariat through its final draft Trade and Investment Report (2022) shows a new trend where member countries are doing increased business with the West African countries, Japan, USA, India, China and the United Arab Emirates (UAE).

“Despite achieving the above integration milestones, intra-EAC trade remains low at 15 percent in 2022 due to, among others, the imposition of non-tariff barriers (NTBs) by partner states. The persistence of NTBs continued to negatively affect intra-EAC trade,” says Peter Mathuki, Secretary-General, EAC Secretariat.

 “Nevertheless, efforts have been put in place to resolve the existing NTBs and encourage partner states to refrain from imposing new ones in line with the commitment under the EAC Customs Union Protocol. The Secretariat in collaboration with partner states will work towards addressing barriers that impede trade with the objective of increasing Intra-EAC trade in the coming years.”

So far, the EAC has resolved 23 out of 33 NTBs.

Provisional data shows that EAC imports from the UAE surged by 81.9 percent to $8.01 billion in 2022 from $4.4 billion in 2021 and imports from India increased by 20.9 percent to $5.85 billion from $4.84 billion in the same period.

EAC’s total imports from China grew by 16.6 to $10.98 billion from $9.42 billion while imports from the US increased by 15.7 percent to $1.51 billion from $1.31 billion.

Imports from the rest of the world grew by 19.1 percent to $53.89 billion in 2022 from $45.25 billion in 2021, whereas imports from Common Market for Eastern and Southern Africa (Comesa) grew by 18.5 percent to $4.64 billion from $3.92 billion.

On the other hand, EAC’s total exports to the Economic Community of West African States (Ecowas) region increased by 48.5 percent to $136.1 million in 2022 from $91.6 million in 2021 while exports to Japan increased by 35.9 percent to $188.2 million from $138.5 million in the same period.

Exports to Africa increased by 10.7 percent to $8.93 billion from $8.06 billion.

Total intra-EAC trade grew by 11.2 percent to $10.91 billion in 2022 from $9.81 billion in 2021 but the percentage share of the intra-EAC trade to EAC total trade stood at 15 percent in 2022.

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Abuja, Dec. 18, 2023: Mr Kalilou Traore, Ambassador of Cote d’Ivoire to Nigeria, says the official trade volume between his country and Nigeria has reached approximately 1.5 billion dollars.

Traore made this known on Sunday in Abuja where he said that the trade was still opened for improvement, particularly in the area of manufacturing.

“The official trade volume between Cote d’Ivoire and Nigeria is approximately 1.5 billion dollars. This includes crude oil because Cote d’Ivoire refinery is supplied by Nigeria.

“Beyond that, we have so many manufacturing products being traded between the two countries, like cement coming from Nigeria, agricultural products, food and cosmetics, like soap.

“We have a very high potential to improve on the volume of trade, particularly in the area of manufacturing products.

“You know, Nigeria is the biggest economy in the sub-region, Cote d’Ivoire also after Nigeria is one of the biggest economy in the sub-region.

“Particularly in Francophone countries, Cote d’Ivoire is the biggest. So these are two captains that have possibility.”

The envoy said Cote d’Ivoire now worked closely with Nigeria business association, Nigeria Customs Service, Federal Ministry of Industry, Trade and Investment, and the Ministry of Foreign Affairs to boost trade between both countries.

Traore said that Nigeria import a lot and that some of the products that Nigeria imported could be supplied by Côte d’Ivoire.

“Cote d’Ivoire also imports a lot, some of the products Cote d’Ivoire import can be supplied by Nigerian industries.

“We are working to make this happen quickly in the manufacturing sector,” Traore said.

Traore restated the country’s commitment to partner Nigeria toward improving its economic growth in 2024.

The envoy said that strategic measures had been put in place by the Ivorian government not just to attract Nigeria businesses there, but to also enable business thrive in the country.

“Our Presidency under the leadership of Alassane Ouattara is conducting the country very strongly in the way that the country will receive investors and business people all over the world.

“We are promoting this in Nigeria for Nigerians, because we want to be part of the this economic success of the country.

“To encourage Nigerians to come and do business, and expand their businesses in Côte d’Ivoire, by doing this we believe we will boost regional cooperation in a win-win situation.

“We think Nigeria has money and it is an occasion for Nigerians and Nigeria business operators to invest in Côte d’Ivoire, and expand their businesses there.”

The envoy described Côte d’Ivoire as one of the fastest growing country in the sub-region since past decades.

“Our economic growth is approximately seven per cent that is what is planned in this year 2023. Next year we are supposed to go further.

“We also have very strong macro-economic environment with a very large rate of inflation. Our country faced challenges with what is happening in the world, like COVID-19 whereby everybody suffered.

“Even though the inflation rate of Côte d’Ivoire was seven per cent last year, now we are moving to three per cent, next year we will be free 100 per cent of inflation rate,” he added.

The envoy mentioned that the population of Nigerians in Côte d’Ivoire was small and that most Ivorians in Nigeria had small businesses, saying more should be done to improve trade between both countries.

“The population of Côte d’Ivoire in Nigeria is still small, most of the Ivorians here are in small businesses and not attained high level businesses.

“Some are also staff of big organisations like banks and international community, but majority are into small businesses.

“There are many Nigerians doing businesses at different levels in Côte d’Ivoire, we have Nigeria banks like UBA Plc and others in Côte d’Ivoire, this is an ongoing process ,” Traore said.

London, Nov. 22, 2023: Britain and South Korea are to launch talks on a new trade deal and sign a diplomatic accord as part of Korean President Yoon Suk Yeol’s state visit.

British Business and Trade Secretary Kemi Badenoch would begin negotiations with her Korean counterpart Bang Moon Kyu at the UK-Korea Business Forum at Mansion House on Wednesday.

They would also announce 21 billion pounds (26.3 billion dollars) of investments committed by Korean businesses in green energy and infrastructure projects across the UK.

The UK secured a free trade deal with South Korea in 2019, with the agreement largely aimed at keeping trade flowing post-Brexit and removing uncertainty.

The UK hopes to secure modern digital provisions in a new deal because most of its services exports to Korea are delivered digitally.

Badenoch said: “The government is upgrading our trade deal with South Korea to ensure that our trading relationship plays to the UK’s strengths as an advanced, high-tech economy.

“This refreshed, modernised deal will boost our world-leading services sector while also creating new opportunities for UK exports such as in our world-leading food and luxury goods sectors.”

Yoon begins his state visit on Tuesday with a welcome from the king and queen.

He would hold a bilateral meeting with Prime Minister Rishi Sunak and sign the new long-term agreement covering defence and technology co-operation in Downing Street on Wednesday.

The Downing Street Accord follows similar agreements with Singapore and Japan, coming as the UK seeks to consolidate influence in the Indo-Pacific.

It will include a defence agreement that would boost the British and Korean militaries’ co-operation on countering smuggling in the East China Sea which North Korea relies on to evade sanctions.

Defence Secretary Grant Shapps said: “the UK is leading the way in supporting our Korean friends in countering North Korea’s aggressive posturing and ensuring the safety and security of the Indo-Pacific.

“Deepening the ties between the Royal Navy and Republic of Korea Navy, our bilateral defence relationship has never been stronger.”

Foreign Secretary David Cameron said that the agreement signed 70 years after the Korean War Armistice was a truly unique step in the strengthening of our work to secure the security of the Korean Peninsula and the region.

We are proud, as a permanent member of the UN Security Council, to be at the forefront of international sanctions enforcement activity.

“This includes upholding international commitments to curtail North Korea’s illegal weapons programmes.”

Downing Street said the accord will also see the countries work closer together on technology such as artificial intelligence, semi-conductors and quantum.

Science ministers would also sign a memorandum of understanding to boost space co-operation.

South Korea would host next year’s AI summit after the first UK-backed gathering earlier this month.

The UK visit coincides with the 140th anniversary of diplomatic relations between the UK and Korea, as well as the 70th anniversary of the armistice of the Korean war.