Over 80% of Africa’s exports are shipped overseas mainly to the European Union (EU), China and the US, with the continent trailing behind its counterparts in intra-regional trade at 17% compared to Europe at 69% and Asia at 59%. There are huge benefits in establishing a free trade area among the 1.3bn people (accounting for Africa’s population) with a combined GDP of US$ 2.5 trillion from 54 countries. Free trade could create millions of jobs and reduce unemployment among the continent’s teeming youth population as free trade could be a catalyst for structural change and economic development. Read about how PDF II contributed to Nigeria’s decision to sign up to the AfCFTA.
AfCFTA – Nigeria Signs Up
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The Trade Policy Work Stream conducted a needs assessment to get direct feedback from export-oriented MSMEs, export-supporting government institutions, and export business service providers to ascertain the capacity gaps. The top 5 challenges highlighted by the respondents include lack of market linkages, lack of finance, lack of market intelligence, limited knowledge of destination country requirements, and Export documentation.
In response to their needs, TRD workstream designed a targeted capacity building for the non-oil export community of practice to address the knowledge and skill gaps through a 4-part Export Capacity Building (CB) Series. The following topics were covered in this sequence:
- Market Entry strategies (with case studies: Europe (EU), US, China)
- Raising Finance for Your Export Business
- Understanding Export Documentation
- Branding and Packaging for export
This study focuses on the determination of the impact of Nigeria’s textiles import restriction. Specifically, the study describes the structure of the global and Nigeria’s textile industries as well as the global value chain, and the policy environment surrounding the industry in a global and national perspective. It was conducted in 2013 with support from FCDO (formerly DFID).
The lack of improvement and deterioration in Nigeria’s export trade performance rankings such as measures of time and cost associated with exporting and importing a standardized cargo of goods reinforces the need for Nigeria to undertake urgent and extensive reform to improve its trading across borders performance. This research provides immediate, medium and long term reform options.
Trade Associations play a role in promoting appropriate policies, regulations, and necessary reforms relating to their sector of operations. They create opportunities for networking and consultations among industry players as well as being a voice when it comes to new regulations and legislations while encouraging best practices among its members. According to Peter Gomersall[1], trade associations exist to support their members and further their interests, to defend them when they are under threats and to promote a common position on issues affecting the environment in which they operate.
Given the foregoing, the PDF Bridge Trade Policy Workstream organised a two-day capacity-building session targeted at strengthening the leadership of non-oil export-related trade associations and improve on their business strategy to position them to take advantage of the opportunities in the non-oil export value chain. The sessions had in attendance delegates from government agencies such as FMITI, NAQS, FMARD, NOTN, CBN as well as executives of trade group drawn from various industries including agricultural commodities farmers, agricultural commodities exchange and aggregators, industrialists, agro-processors, women, and youth development groups, textile and apparel among other participants.
[1] https://www.iiste.org/Journals/index.php/JEDS/article/download/7852/8030
A roundtable event on the potentials of exporting the services sector in Nigeria. At the Roundtable, it was noted that among business owners and exporters, there is little understanding of what services export entails. Many businesses engage in service exports but are not aware of this. Understanding the four modes of services – Cross border trade, Consumption abroad, Commercial presence, and Presence of natural persons – is important for business growth. To achieve this, stakeholders including the NEPC will need to conduct capacity building and sensitisation workshops for exporters, working with relevant business associations.
