Boosting Africa’s regional trade strategy

The Chief Executive Officer of the Nigerian Export Promotion Council, Ezra Yakusak, highlighted the challenges facing Africa's regional trade strategy in a recent interview with CNBC Africa. Yakusak emphasized the critical lack of access to trade and market information as a major obstacle to the continent's trade efforts. He stressed the need to intensify efforts towards value addition to consolidate areas of progress. The conversation delved into various aspects of enhancing Africa's trade performance, especially in light of Nigeria's upcoming inclusion in the Guarded Trade Initiative under the African Continental Free Trade Area. Yakusak underscored the significance of trade information for small and medium-sized enterprises (SMEs), noting that without access to adequate information, SMEs may struggle to engage in export activities. To address this gap, the Nigeria Export Promotion Council organizes capacity-building programs and educational initiatives tailored to the specific needs of Nigerian exporters. Yakusak also highlighted the importance of providing incentives, such as certification support, to empower exporters and enhance product standardization. By offering incentives like covering the costs of certifications like HACCP and FDA, the council aims to boost intra-Africa trade and improve product quality. Moreover, Yakusak addressed concerns surrounding geopolitical shocks and coup d'états, acknowledging their potential impact on trade and political instability. He highlighted the importance of stable policies and focused efforts to mitigate the effects of such shocks on regional trade. Yakusak emphasized the need for a shift in perspective towards African goods, dispelling the notion of inferiority associated with products from the continent. By changing mindsets and promoting intra-Africa trade, Yakusak believes that African nations can enhance their trade relationships and harness their comparative advantages. Looking ahead, Yakusak discussed the outlook for key commodities markets, such as sesame and cashew, noting strong demand from countries like Japan and China. While highlighting the promising prospects for Nigerian commodities, he emphasized the importance of value addition in exports. Yakusak urged Nigerian exporters to focus on adding value to their products rather than exporting raw commodities, citing the high quality and potency of goods like ginger as key selling points in international markets. In conclusion, Yakusak's insights shed light on the critical areas that require attention to bolster Africa's regional trade strategy. By addressing information gaps, promoting value addition, and shifting perspectives on African goods, the continent can unlock new opportunities for economic growth and sustainable trade partnerships.