Abuja: One of the biggest challenges faced by African countries in global trade is that Africa does not sufficiently trade within itself. Intra-African trade and investment are generally lower when compared to other major continental or regional blocs like Europe, Asia, and the Americas. More so, trade records among African countries might be frequently understated, partly as a result of the lack of adequate data and the high rate of smuggling.
According to News Agency of Nigeria, an Intra-Continental Trade Share data showed that Europe, Asia, and Oceania and the Americas have 67 per cent, 64 per cent, and 44 per cent intra-continental trade and investment, respectively. On the other hand, formal intra-African trade and investment is put at between 12 per cent and 18 per cent. Africa is also responsible for less than three per cent of total global trade, with recent figures often placing its share of global merchandise trade in the range of two per cent to 3.5 per cent.
The tendency for trade remains concentrated within the common-currency areas and trade zones that developed among African countries during the colonial era. These trade relations are carried out by the often-inadequate means of transportation and communication, by the lack of complementary agricultural or other products, and by the limited development of manufacturing industries.
In response to this continental trade inadequacy, the ambitious trade policy, known as the African Continental Free Trade Agreement (AfCFTA), was conceived. Experts say AfCFTA has the potential to become the world’s largest free-trade area, and the continent is expected to contribute more to world trade, thereby delivering economic growth to its citizens. The broad objective of the AfCFTA is to create a single continental market for goods and services, with free movement of business persons and investments, paving the way for accelerating the establishment of the Continental Customs Union.
To facilitate intra-African trade and investment, Woodhall Capital recently collaborated with other stakeholders to organise a Pre-Investor Forum on the Intra-African Trade and Investment Conference in Abuja. Woodhall Capital is an indigenous investment banking firm that provides expert financial advisory services aimed at securing international funding for clients. In collaboration with the Nigeria Governors’ Forum (NGF) and Afreximbank, the firm focuses on facilitating connections between international investors and financial institutions, as well as corporate entities, seeking capital infusion.
The forum was themed ‘Facilitating Intra-African Trade: Unlocking the Potential of African Direct Investments (ADI) and Foreign Direct Investments (FDI) to Drive Trade and Sustainable Growth.’ In his keynote address and official opening, Vice-President Kashim Shettima echoed the opening paragraphs of this article, decrying the trade deficit among African countries. He emphasised the role of subnational governments in the Nigerian-led continental trade and investment revolution.
Mrs Mojisola Hunponu-Wusu, President of Woodhall Capital, reaffirmed the firm’s commitment to creating structured investment platforms that connect state-led development initiatives with domestic and international investors. She also commended the present administration for what she called bold reforms redefining Nigeria’s investment landscape.
Experts say intra-African trade, in spite of its lower volume compared to other continents, tends to involve a higher share of processed and manufactured goods compared to Africa’s trade with the rest of the world. Stakeholders at the event agreed that the key to boosting intra-African trade and investment lies in subnational governments. Dr Terhemen Johnpaul, Chairman of the Forum of State Investment Promotion Agencies of Nigeria (FoSIPAN), agreed that the next frontier of Nigeria’s prosperity lies in subnational areas.
Mr Alain-Thierry Mbongue, Regional Chief Operating Officer, Anglophone West Africa (AWAF), Afreximbank, emphasized the transformative potential inherent in sub-sovereign leadership in driving trade and investment. He highlighted the African Sub-Sovereign Governments Network (AfSNET), which supports African sub-national entities in their investment endeavours, fostering innovation and development.
Hunpunu-Wusu said fostering and nurturing partnerships were crucial for growing ADI and FDI for sustainable growth and development. She also said her firm was targeting 30 billion dollars in fresh capital from upcoming investment tours in the UK and the Middle East, as part of efforts to deepen financing for sub-national and sovereign infrastructure projects.
Gov. AbdulRahman AbdulRazaq of Kwara and Chairman of the NGF, reiterated that states hold the key to unlocking Africa’s next wave of trade and economic growth. A major highlight of the pre-investor event was the formal signing of strategic MoUs and partnership agreements between Woodhall Capital and Afreximbank, aimed at financing Africa’s creative economy.
Participants at the forum said the event reinforced the collective resolve of governments, financiers, and investors to deepen Africa’s economic integration and position Nigeria as a leading hub for intra-African and global investment flows. Princess Zahrah Mustapha, Director-General of the Presidential Enabling Business Environment Council (PEBEC), emphasized the importance of mobilising African capital for African development.