Paul Batibonak on how to strengthen trade on the African continent

A recent report by the World Trade Organization has raised concerns about the need to enhance trade in Africa. The report highlighted that African trade in goods and services only accounts for 3% of global exports and imports on average. To delve deeper into this issue, CNBC Africa interviewed trade analyst Paul Batibonak. During the interview, Batibonak discussed various challenges facing African countries in the realm of trade and proposed potential solutions to strengthen trade on the continent. One of the key issues raised by Batibonak was the structural composition of global trade, which has hindered Africa's performance in this arena for decades. He noted that while Africa has been making efforts to increase its exports, the continent has struggled to significantly improve its share of global trade. According to him, addressing this issue would require intervention at the WTO level. Batibonak emphasized that 50% of African exports in trading goods are raw materials or agricultural products that lack value addition. He called for restructuring trade agreements to allow for more value addition within the continent. Additionally, Batibonak highlighted the importance of technology, policy space, and local content in enhancing Africa's trade performance. He underscored the need for high-tech solutions and innovation to drive value creation in African exports. However, he acknowledged that foreign investment alone may not suffice and stressed the importance of creating a conducive policy environment to foster innovation and development. The interview also shed light on disparities within the continent's trade landscape. Batibonak pointed out that North African countries have excelled in trade compared to sub-Saharan African nations due to factors such as proximity to Europe and access to high-tech solutions. He emphasized the need for other African countries to diversify their economies, promote industrialization, and invest in structural transformation to enhance their trade competitiveness. Towards the end of the interview, Batibonak addressed concerns about the possible impact of WTO reforms on Africa's interests. While acknowledging the limitations of individual leadership within the WTO, he expressed hope that the organization, under the new leadership of Ngozi Okonjo-Iweala, could drive positive change for African countries. However, he cautioned that ultimate reform within the WTO would require collective action from all member states. Overall, the interview underscored the challenges and opportunities facing African trade, calling for proactive measures at both the continental and global levels to strengthen trade partnerships, promote value addition, and drive economic growth in Africa.