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AfCFTA Implementation Strategies-Part-10: The Coordination

I am glad to announce that this is the tenth and therefore the last in the series of this ten part article on the AfCFTA implementation Strategies. This edition of the article will be focused on Coordination. The implementation committee must develop a strategic vision and goal that they want to achieve using the AfCFTA. This should be divided into objectives which are small goals that lead to the ultimate goal when combined. They should also come up with the strategies for the achievement of each of the goals. Based on these various strategies, a well thought out plan for implementation should be put in place and finally, the committee should then break the plans down into step by step daily activities that will lead to the fulfilment of its goals. These are the tools to be used by the implementation committee to coordinate the successful and sustainable implementation of the AfCFTA 

I strongly believe that the implementation committee must coordinate the development of a vision and a set goal. The goal will give the committee a direction so it can measure its progress. For example, according to the world top export, Nigeria exported goods worth $52.9 out of the total African export of $476.6 in the year 2018. This constitutes 11.01% of the total exportation out of Africa. The committee can then use this to develop a vision to contribute 25% of export volume of Africa in the next ten years and set a goal that will drive all its programmes and activities in the implementation of AfCFTA. This Vision and its implication on business expansion, production capacity, job creation, poverty eradication, impact on the Gross Domestic Products and per capita income should be made clear to the business communities. 

Secondly, the AfCFTA implementation committee should also define the objectives that will be used to coordinate and properly direct the focus of the AfCFTA implementation for the maximum impact. These objectives are smaller goals set for each of the sub-sector of exportation and these should be done in such a way that they add up to culminate in the ultimate goal that was set in the first place. To define the objectives, the ultimate goal or target should be shared across export of Manufactured goods, Agricultural commodities, Minerals and Services. This sharing formula should be based on the current annual export volume and contribution of these sub-sectors vis a vis the expected impact of what the government is planning to do. The committee might need to set up a subcommittee among its members to enable them work closely with the stakeholders in the various sub-sectors, identify their challenges and collate all their feedbacks and then use this to formulate policies that will be recommended to the implementation committee for their necessary action. 

The third thing to be coordinated by the implementation committee are the strategies to be deployed to achieve each of the set objectives. This should be done by the subcommittee created within the AfCFTA implementation in conjunction with the private sectors representative outside the AfCFTA committee. The strategies might vary from one sub-sector to the order based on the peculiarity of the challenges that are currently being faced in each of the sub-sector. One strategy that must cut across all the sub-sector is the strategies that will enhance competitiveness. The last competitive index report showed that Nigeria is least competitive among all the top five economies in Africa. This will mean that the probability that products manufactured in Nigeria, Agricultural commodities cultivated in Nigeria and Minerals mined in Nigeria, will be more expensive than those from other African countries will be very high. The strategies must also include how to effectively communicate AfCFTA to all the stakeholders especially exporters and the boosting of production capacity of the various export sub-sectors in order to be able to meet likely increase in demand from the African countries under the AfCFTA.

Having mapped out the strategies tailored towards the achievement of the objectives in each of the export sub-sectors, the next thing is to put together the implementation plan. This should also be done by the subcommittee created within the AfCFTA implementation in conjunction with the private sectors representative outside the AfCFTA committee. The plan should include the action steps for the implementation of the various strategies with timelines. The planning should answer all the necessary questions that must be answered in the implementation of the strategies and this should include the what, the who, the where, the which, the why, the when and the how to implement the strategies. A monitoring and evaluation mechanism should also be put in place so as to regularly get feedback and make necessary adjustments and interventions in a timely manner. 

Finally, I am very glad to have come to the end of this ten-part series of articles on the AfCFTA implementation strategies. I will like to remind my readers that if we do not do the work, the AfCFTA will not work for us. Some countries have already started considering the establishment of a whole agency of government that will be in charge of the AfCFTA and others are setting up different structures to make it a success. I hope that it will be a success also in Nigeria if we can increase and sustain the tempo. It is my hope that the implementation committee of the government will adopt some of the recommendations that are been prescribed in this article in order to make the implementation of the AfCFTA create the necessary jobs that will lift out of penury, the tens of millions of Nigeria that are currently living below the poverty line. 

For the love of Nigeria, Africa and Mankind.

Bamidele Ayemibo (bayemibo@3timpex.com)

Lead Consultant at 3T Impex Trade Academy

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AfCFTA Implementation Strategies-Part-9: The Collaborations

The is the second to the last article in this ten-part series of articles on the AfCFTA implementation Strategies. This edition of the article will be focused on Collaborations. This collaboration has to be in three forms in order to be able to effectively and successfully implement the AfCFTA for the benefits of Nigerians. The first form of collaboration has to be between the public sector and organised private sector in Nigeria. The second form of collaboration has to be between the organised private sector in Nigeria and the relevant organised private sector in the export market. The third form of collaboration has to be between the public sector in Nigeria and the public sector in the export market. Since all these collaborations cannot happen at once, that means the government must work with the private sector to fashion out the country and product to target per time (this can be per quarter or per month). 

Some of the private sector organisation should include but not limited to the representatives from National Association of Chamber of Commerce Industry Mines and Agriculture (NACCIMA), Bankers Committee, National Association of Small and Medium Scale Enterprise (NASME), Nigerian Association of Small Scale Industrialist (NASSI) and Manufacturer Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI), Southeast Chamber of Commerce, Abuja Chamber of Commerce and Industry (ACCI), Kano Chamber of Commerce, Kaduna Chamber of Commerce etc. 

The first and one of the most important collaboration is that between the public and organised private sector in Nigeria. This collaboration should be driven by the implementation committee since both representatives of the public and private sectors are present as members of the implementation committee. The essence of this collaboration is to enable the implementation committee to share ideas and strategies with organised private sector. This will enable the government to sample opinions on the implication of the steps they are about to take regarding the AfCFTA. It also affords the government the opportunity to hear from the operator first hand regarding the challenges being faced in the sector. As a matter of fact, this collaboration enables the government to also get feedback and therefore get to know why some of its policies are being circumvented and therefore not working as originally intended. 

From the previous edition of these series of Articles, it was clearly stated that one of the reasons for the failure of free trade agreement around the world is lack of information about profit, plans, paperwork and processes involve in enjoying the benefits of the programme. This public and private sector collaboration therefore will make it possible for governments and the implementation committee to be able to properly disseminate the necessary information to the private sector. This can be done via a monthly meeting of both parties and the signing of a memorandum of understanding that highlights the obligations of both parties. 

The second form of collaboration being suggested for the proper implementation of the AfCFTA is the collaboration between the organised private sectors in Nigeria and relevant private sector organisation in the export market. For a start, in the first year of commencement of trading under the AfCFTA, the organised private sector in Nigeria under the umbrella bodies like NACCIMA, can startup the collaboration efforts by forming an alliance with umbrella bodies of private companies in the top five economies in Africa which include South Africa, Algeria, Morocco, Egypt and Angola. This is because, these are not just the largest economy in Africa, they are also the largest importers of different products into the continent of Africa. 

On the other hand, the NACCIMA can decide to choose the countries to form alliances with based on those that currently import products that Nigeria produce in large quantity from outside the continent. This collaboration should involve the signing of a memorandum of understanding that clearly states the obligations of both parties. The objective of this collaboration should be to exchange information relating to market intelligence reports of different sectors. Also, to have a regular business to business meeting in order to get buyers, sell franchise, give license to produce, form a joint venture, establish a presence through partnership with an agent, merchants, distributors etc at the destination market 

The third and the last form of collaboration is a very strategic one between the public sector organisation in Nigeria and public sector organisation in the export market. This should be done through the establishment of a commercial attaché (more like a trade desk) at the Nigerian embassy in the export market. This collaboration should involve the signing of a memorandum of understanding between ministry of trade or foreign affairs of both countries and this agreement should clearly state the obligations of both parties. The objective of this collaboration should be the exchange of information on the government policies and procedures for the importation of products into both countries. This should cover pre and post import documentation, exchange control regulation, quality specifications, quality certification, quality control measures at the port, licensing and quota requirements, company incorporation requirements, import prohibition etc. This should also include the needs and supply gap of the economy in terms of raw materials, foods and manufactured goods. All the export market information obtained via this collaboration should be disseminated to the organised private sector through the implementation committee. 

Finally, I will like to say that, the objectives of the three collaboration stated in this article are not exhaustive. They are recommendations that could give the implementation committee a thrust in putting together its strategies. I will also like to state that the AfCFTA has given Africa an opportunity to rewrite its history and become the destination that everyone wants to go for business growth and career advancement. However, we must be ready to do the work required to make this a reality. It is my hope that the implementation committee of the government will adopt some of the recommendations that are been prescribed in this article in order to make the implementation of the AfCFTA create the necessary jobs that will lift out of penury, the tens of millions of Nigeria that are currently living below the poverty line. 

For the love of Nigeria, Africa and Mankind.

Bamidele Ayemibo (bayemibo@3timpex.com)

Lead Consultant at 3T Impex Trade Academy

AfCFTA Implementation Strategies-Part-8: The Cooperation

This is the eight in the series of ten parts articles on the AfCFTA implementation Strategies. This edition is focused on Cooperation. One of the factors that has hindered the growth of exportation in Nigeria and consequently militating against the utilisation of free trade agreement signed within the ECOWAS region is lack of cooperation among the ministries, departments and agencies (MDAs) that are involved directly or indirectly with exportation of goods out of the country. This was the reason why I recommended in the part one of these series of articles that, the members of the implementation committee should be drawn from various agencies of government that are rendering one service or the other to exporters. 

For the sake of clarity, the agencies of government that must work together for the successful implementation of the AfCFTA for the benefits of Nigerians should include but not limited to the following: Nigeria Export promotion Council (NEPC), Nigeria Custom Service (NCS), Standards Organization of Nigeria (SON), National Agency for Food and Drug Administration and Control (NAFDAC), Federal Ministry of Foreign Affairs, Federal Ministry of Industry, Trade and Investment, Presidential Enabling Business Environment Council (PEBEC), Small and Medium Scale Enterprise Development Agency of Nigeria (SMEDAN), Federal Produce Inspection Service (FPIS) Nigeria Agricultural Quarantines Service (NAQS), Federal Ministry of Transportation, Central Bank of Nigeria (CBN), Nexim Bank and the Nigeria Office of Trade Negotiation (NOTN). 

These agencies are critical to the successful implementation of AfCFTA because they are involve in rendering support services in the area of export promotion, documentation and clearance of goods for export, quality assurance of foods, drugs and manufactured goods, processing of certificate of origin, administration of subsidies and export incentives, issuance of export guidelines and documentations, championing the course for the ease of doing business in Nigeria, handling and shipment of goods from the ports and terminals, administration of the application form for exportation, provision of cheap source of funding for manufacturing and exportation. All these are critical elements in the export value chain. If any of these MDAs weakens the a link in the chain, it reduce further the already low competitiveness of the Nigerian exporters.

The lack of cooperation among the agencies of government has manifested in many ways in the past. This had made all the efforts of the MDA driving any initiative to solve a problem in the export sector to proof abortive. For example, the CBN wanted to ensure that all goods leaving the country go out through the legal means of NXP documentation. This is to ensure that the proceeds of the exported items are repatriated to grow nation's foreign reserve. However, the NCS does not seem to be interested in this policy of CBN because data obtained from international organisation shows that goods are leaving Nigeria via the sea without documentation and this could only have been possible because the NCS allowed it. Another example is seen in the regulation of NAQS that expects that any commodity leaving Nigeria requires inspection and issuance of phytosanitary certificates but these commodities are leaving the country without this certificate and sometimes using fake NAQS certificate and these goods are are approved to be loaded on the vessel and allowed for shipment.

A more recent example that I personally witnessed is a situation where NEPC is organising solo exhibition in Cote D’Ivoire and already agreed with the Nigerian Embassy in that country, the kind of support that is required from them. However, it is sad to note that the Nigerian Embassy In Cote D’Ivoire withdrew from being part of the programme few days before the event because of personal issues relating to funds with the consulatnt on ground and thereby causing delay in clearing the goods to be used for the exhibition. They also wrote the private and government agencies in Cote D’Ivoire that they are no more part of the event which led to the low turn out of visitors at the event. There are so many other examples that shows rivalry and battle of supremacy among the government agencies which negatively affects the businesses they are supposed to serve.

In order to foster the required cooperation among the various government agencies and also, as a matter of commitment to AfCFTA on the part of the government, I will like to recommend that the president should nominate a minister to be the AfCFTA Champion. The AfCFTA Champion should naturally be the Minister of Industry Trade & Investment or as the president may deemed fit. He should be mandated to work with all the head of other ministries, departments and agencies that are involved in exportation to nominate a Director who will be the AfCFTA Driver in these MDAs. The minister who is the AfCFTA Champion together with the AfCFTA Driver at the MDAs should be part of the AfCFTA implementation committee. This is to ensure that all the plans of the committee are adequately communicated to the MDAs that are responsible for the implementation.

It is also very important for the implementation committee to clearly define the job description of the AfCFTA Drivers in all relevant MDAs and also work with the head of service to put in place a punitive measure that will ensure that any AfCFTA Driver that is not living up to expectations is disciplined and also replaced where necessary.

Finally, I will like to say that, if we want to enjoy all the benefits embedded in the AfCFTA, then we have to do the work. This is because, this free trade agreement will not work for any country that is not ready to do the work. It is my hope that the implementation committee of the government will adopt some of the recommendations that are been prescribed in this article in order to make the implementation of the AfCFTA create the necessary jobs that will lift out of penury, the tens of millions of Nigeria that are currently living below the poverty line. 

For the love of Nigeria, Africa and Mankind.

Bamidele Ayemibo (bayemibo@3timpex.com)

Lead Consultant at 3T Impex Trade Academy