Africa’s future lies in the free movement of goods and people across state borders

Someone once asked me what I know about Angola, and I excitedly started to list all the things I had seen, read and watched on television about this country.

When I was done, she asked me if I had been to Angola and if I know these things to be true.

I said I hadn’t. She then remarked that it was a pity we Africans only know about each other from what we are told.

I grasped the gravity of the issue at hand: That what we hear and see about our trading partners are things that may be far from reality when we visit and trade together.

The visit a fortnight ago by Nigerian President Muhammadu Buhari, a year after that of his predecessor, shows the increasing realisation by African leaders of the need for intra-Africa trade and investment.

While Kenya is a member of the East African Community, the Common Market for Eastern and Southern Africa (Comesa) and the Tripartite Free Trade Area, Nigeria is a member of the Economic Community of West African States (Ecowas).

Both the Tripartite and Ecowas regional trading blocs constitute a market opportunity of about 950 million people out of Africa’s population of 1.1 billion.

The two countries or regions have the opportunity to speed the realisation of the Africa Continental Free Trade Area expected to be achieved by 2028.

Towards this end, Kenya and Nigeria signed a bilateral trade agreement on September 6, 2013, with the objective of enhancing trade and investments in agriculture and agro industry, horticulture, manufacturing, solid minerals, tourism, oil and gas and financial services.

Kenya’s exports averaged Sh2 billion, while imports averaged Sh313 million between 2004 and 2014, making Nigeria a significant trading partner for Kenya.

The two countries have committed to double their trade and investment levels in five years.

ECONOMIC GROWTH

Kenya and Nigeria are examples of many African countries that have shown interest in bilateral trade.

The deepening regional integration in Africa has also positioned the continent as a leading destination for trade and investments to countries in Europe, North America and Asia.

There are initiatives such as the Indian Ocean Rim Association, the African Growth and Opportunity Act and Economic Partnerships Agreements, which are aimed at enhancing trade and investment between Africa and the rest of the world.

Africa’s full potential in trade and investment is, however, constrained by challenges such as inadequate infrastructure, existence of tariffs and non-tariff barriers, high costs of energy, overlapping regional trading arrangements, perennial conflicts, illicit and counterfeit trade, stringent regulatory environment, tariff escalations, dumping and inefficient ports.

The manufacturing sector is key to Africa’s economic growth, needing more support by the governments within the existing national and global best practices.

Africa’s economic growth and development lies in maximising intra-Africa trade and investment opportunities.

African governments need to invest more in addressing the challenges and enhancing intra-African trade, both in the medium and the long term.

The writer is chief executive of Kenya Association of Manufacturers [email protected]