Collaboration between West, East Africa could boost Intra-Africa Trade - Trade consultant

Mrs. Tokunbo Chiedu, a Trade Consultant, asserts that intra-Africa trade holds the potential for substantial improvement through strategic collaboration between regions, specifically West Africa and East Africa.

Mrs. Chiedu, the Chief Executive Officer of Compass Global and the Convener of the West Africa Meets East Africa Initiative, aimed to capitalize on the AFCFTA by aligning the regional value propositions of West & East Africa, focusing on areas of complementarity.

She shared these profound insights during the recent market visit to Ghana and Pre-Mission Activation/Afcfta Capacity Building Workshop held on Friday, August 16, under the theme ‘Unlocking the AfCFTA Opportunity for Women &Youths: Leveraging Regional Value Chain Opportunities and Business Linkages to Enhance Intra-Africa Trade.’

This West Africa Meets East Africa process, which was initiated in 2022 with the support of AFREXIM BANK, the ECOWAS Commission, and a host of strategic partners, including the UN Economic Commission for Africa - West Africa Office is led by the Organised private sector. It aims to strategically position Africa's ecosystem of SMEs, Women & Youth Entrepreneurs and organizations to leverage the AFCFTA, and to promote regional integration.

Working in collaboration with the African Women Entrepreneurship Programme led by Madame Comfort Adjahoe - Jennings - President AWEP West Africa, and Madam Alexandra Prempeh - President Organisation of Women in International Trade - Ghana, and leading Event Management Company - ICS Africa, the AFCFTA workshop, which focused on Negotiation Strategies and Deal Making was preceded by market visits to the factories of Ghanaian Entrepreneurs who are gearing up to participate in exports, and to access new markets. In attendance were SMEs, Women and Youth Entrepreneurs and Stakeholders aiming to gain a deeper understanding of how to capitalize on the Africa free trade continental agreement.

Mrs. Chiedu highlighted that the improvement of intra-Africa trade necessitates a purposeful drive towards success, with specific attention given to countries engaging in substantial volumes of intra-African trade. According to a 2022 Afreximbank report, intra -African trade remains low, constituting approximately 16% of the continent's total trade volume. This figure falls significantly below the levels of intra-regional trade in Asia (59%) and Europe (68%). In 2022, intra-African trade as a percentage of global trade declined from 14.5% to 13.7%. Intra-African exports also decreased from 18.22% to 17.89% during the same period, with intra-African imports dropping from 12.81% to 12.09%.

“The two regions of West Africa and East Africa mutually benefit from each other due to the complementary nature of their offerings. Collaboration and the formation of strategic partnerships that can translate into trade become more feasible. Thus, the convergence of West Africa and East Africa is centered on leveraging regional value propositions, with a focus on the value chains within these regions,” Chiedu explained, using Ghana’s Shea Butter industry as a prime example.

She elaborated, "Ghana, for instance, is well known globally for its Shea Butter. However, if individual players within Ghana, particularly small-scale producers involved in Shea Butter farming, receive substantial orders, fulfilling those orders independently becomes impractical due to capacity issues.

To address this challenge, we advocate for the aggregating clustering convergence of our two regions. While we are also engaging with other regions, the pilot initiative of West meets East Africa is aimed at showcasing the regional value propositions of West Africa and facilitating reciprocal trade arrangements. SMEs, including Women and Youth Entrepreneurs, are encouraged to convene at the negotiating table and facilitate mutually beneficial transactions.”

Citing the case study of a deal valued at $500,000 that emerged from the trade mission to Kenya last year, which underscores the achievements of the previous tour, which culminated in a $500,000 sesame seeds deal.

We are preparing a mission in November, making a return to Kenya for the second time. Following our inaugural launch in Kenya last year, our focus now shifts towards activating the deal room established during our recent visit.

This year, the market visit will start from Kenya, and move to Tanzania, we, as stakeholders from West Africa, are actively engaging with the countries within the East African Community working with the East Africa Business Council and the East Africa Women Business Platform.

This year, we have introduced pre-mission training to adequately equip participants with the necessary knowledge before embarking on the trade mission. In the previous year, a similar training session was conducted in Nigeria, where we accompanied 50 association presidents and SMEs on the trade mission, resulting in significant success. Notably, we secured a deal valued at half a million dollars for sesame seeds and shea seeds. This underscores the commitment of this process towards identifying the demand for West African products or resources in other regions,” she revealed.

President of the Africa Women Entrepreneurship Program (AWEP) West Africa/Founder &CEO of Ele Agbe Company Limited, Madam Comfort Adjahoe – Jennings, emphasized that the workshops and tours are designed to eradicate the culture of individualism among women in business in Africa, fostering collaborative relationships among stakeholders across diverse regions.

President of the Africa Women Entrepreneurship Program (AWEP) West Africa/Founder &CEO of Ele Agbe Company Limited, Madam Comfort Adjahoe–Jennings, highlighted President of the Africa Women Entrepreneurship Program (AWEP) West Africa/Founder &CEO of Ele Agbe Company Limited, Madam Comfort Adjahoe – Jennings, emphasized that the workshops and tours are designed to eradicate the culture of individualism among women in business in Africa, fostering collaborative relationships among stakeholders across different regions.

“Our primary focus lies in cultivating partnerships with various women's organizations to meet the growing demand for our products and empower future generations. Our goal is to revolutionize the current landscape by addressing the challenges women encounter and dismantling the obstacles hindering their collaboration. This strategic approach fosters united efforts among women entrepreneurs in West Africa and neighboring regions, delving into the intricacies of 'how,' 'why,' 'what,' and 'when' to effectively cater to the escalating demands across the African continent."She underscored the group's staunch stance against the export of raw materials, emphasizing the mission to generate job opportunities for our youth and invigorate economic expansion.

Within our respective chapters, we organize ourselves into clusters based on industry specialization, such as food, cosmetics, and craft services. This categorization facilitates collaborative problem-solving and capacity-building initiatives tailored to the specific requirements of each group,” Madam Adjahoe–Jennings concluded.

Other notable attendees at the event included National Coordinator of the Association of Nigeria Women Business Network, Madam Angela Ajala; President of the Organization of Women in Trade Ghana, Alexandra Prempeh; National Coordinator of the National AfCFTA Coordination Office, Dr. Fareed Kwesi Arthur; Senior Advisor at Afreximbank, Emeka Uzomba; Vice President of AWEP Ghana, Jacqueline Ruby Sackitey; Director at the International Finance Corporation, Frank Ajilore; Emmaline Datey, Director for the Female Leaders and Entrepreneurs Network (FLEN) – West Africa; and Chairman of the Board of Trustees at Coderina Education &Technology, Femi Niyi.

The African Continental Free Trade Area (AfCFTA) stands as a pivotal initiative within Agenda 2063, Africa’s development framework. The AfCFTA, sanctioned during the 18th ordinary Session of the Assembly of Heads of State and Government in Addis Ababa, Ethiopia in January 2012, signifies a strategic decision to establish an African Continental Free Trade Area and an Action Plan for Amplifying intra-African trade, thereby fostering socio-economic growth and development.

The primary objective of the AfCFTA is to expedite intra-African trade and bolster Africa’s global trading position by fortifying Africa’s unified voice and policy framework in global trade negotiations.