Okonjo-Iweala: Africa needs to adopt trade specialisation

The Director General of the World Trade Organization, Ngozi Okonjo-Iweala, emphasized the importance of trade specialization in Africa to avoid trading the same goods and services under the African Continental Free Trade Area. In an exclusive interview with CNBC Africa, she provided insights on the outcomes of the 13th Ministerial Conference and highlighted some key achievements for developing countries. Okonjo-Iweala pointed out that 28 least developed countries successfully negotiated a transition period of three years to benefit from specific provisions even after graduating to developed status. This achievement was a significant milestone after years of advocacy by these nations. Additionally, the GEN-19 group of 90 developing countries secured an agreement to revisit existing WTO agreements to enhance benefits for developing nations. The Ministerial Conference's acceptance of a declaration to address this issue marked progress, although it had been stagnant for a decade. Furthermore, the recent accession of Timor-Leste and Comoros to the WTO demonstrated the commitment of developing countries to meet the rigorous standards set by the organization. Okonjo-Iweala also highlighted the extension of the moratorium on customs duties for electronic transactions, supporting digital trade, especially in services like streaming, online accounting, and telemedicine. This decision was crucial for facilitating the growth of digital commerce, benefiting both developing and developed nations. Despite these accomplishments, Okonjo-Iweala acknowledged certain disappointments, such as the unresolved fisheries subsidies agreement. However, she remained optimistic about reaching a resolution in subsequent negotiations, particularly focusing on the WTO's mandate to elevate living standards and promote sustainable development. In response to a query about Africa's progress in trade, Okonjo-Iweala lauded the African Continental Free Trade Area (AfCFTA) as a transformative initiative that could propel the continent's economic growth. She emphasized the need for seamless implementation of protocols and the dismantling of barriers hindering intra-Africa trade. Okonjo-Iweala underscored the importance of specialization, urging countries to identify and leverage their comparative advantages to foster a diversified and value-added trade ecosystem. She highlighted the potential for Africa to enhance its value chains through specialization in critical sectors like manufacturing, pharmaceuticals, and agro-processing. Okonjo-Iweala advocated for the development of green hydrogen and clean energy production from critical minerals, stressing the importance of adding value within the continent instead of exporting raw materials. Collaborations with strategic partners like the Cyhelium countries on carbon and initiatives with FIFA to tap into the global sports apparel market were cited as examples of opportunities for Africa to boost its economic competitiveness. In conclusion, Okonjo-Iweala's message to Nigerians and Africans resonated with a call for concerted efforts in advancing trade specialization, fostering regional integration, and unlocking the continent's vast economic potential. By embracing specialization and leveraging diverse sectors, Africa can forge a path towards sustainable development and prosperity.