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AfCFTA slow take-off: Overall benefit ‘ll help member nations –MAN
COMFORT EKELEME
Manufacturers Association of Nigeria (MAN) has said the slow pace on the takeoff of the African Continental Free Trade Agreement (AfCFTA) was largely based on the need for member nations to put in place institutions that will make the implementation seamless.
This is even as MAN noted that the scheme has put in place its National Secretariat in Ghana.
President of MAN, Engr. Mansur Ahmed who admitted the slow pace, however, maintained its overall benefits will surely help member nations to expand their market chains.
Mansur who said this in Lagos while engaging newsmen on the state of the Nigerian manufacturing sector and the 2022 economic review noted that the secretariat will drive the AFCTA process.
According to him, AfCFTA is a great initiative that when fully implemented will boost the underlining economic activity that can be exchanged under trade.
He stated that there is ongoing negotiation among member nations on some areas to agree on various protocols, which include custom and excise duties, and reduction of different tariffs to zero.
Daily Champion recalled that MAN had last year outlined strategies for manufacturers to exploit AfCFTA
According to the Director-General of MAN, Segun Ajayi-Kadir, for member companies of MAN, particularly Micro Small and Medium Enterprises (MSMEs), to benefit maximally from the AfCFTA, they need to start accelerating export diversification by targeting products that were largely demanded within the continent but were mostly sourced from outside Africa.
He said, “Based on our knowledge of the key provisions of the framework agreement and relevant stakeholders, MSMEs must begin to develop capacity in understanding the AfCFTA rules of origin and the trade remedy mechanisms.
To him, there is a need for them to start developing skills required to effectively participate in the continental value chain.
“They need to also begin to embark on capacity building on export trade logistics and modalities for shipment amidst huge infrastructure deficit prevalent on the continent,” he said.
He advised MSMEs to adopt the market entry strategy that best suited their products giving adequate attention to the culture of the people in the target market, adding that MSMEs must also ensure quality assurance before products were shipped to final destinations.
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