Intra-Africa trade poised for growth through West and East African collaboration
Intra-African trade could see significant growth through strategic collaboration between West Africa and East Africa, according to Mrs. Tokunbo Chiedu, a trade consultant and CEO of Compass Global.
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Speaking at a recent AfCFTA capacity-building workshop in Ghana, Mrs. Chiedu emphasized the potential for substantial improvement by aligning the regional value propositions of the two regions.
The workshop, titled “Unlocking the AfCFTA Opportunity for Women and Youths: Leveraging Regional Value Chain Opportunities and Business Linkages to Enhance Intra-Africa Trade,” took place on August 16. It was part of the "West Africa Meets East Africa" initiative, which was launched in 2022 with support from Afreximbank, ECOWAS, and the UN Economic Commission for Africa, among other partners. The initiative aims to position Africa’s SMEs, women, and youth entrepreneurs to fully capitalize on the African Continental Free Trade Area (AfCFTA).
Mrs. Chiedu noted that Africa's intra-regional trade remains low compared to other regions. A 2022 Afreximbank report revealed that intra-African trade accounted for just 16% of the continent's total trade, compared to 59% in Asia and 68% in Europe. However, she highlighted the complementary nature of West and East Africa’s economies, stating that collaboration between the regions could significantly enhance trade.
A notable example cited was Ghana’s Shea Butter industry, where small-scale producers often struggle to fulfill large international orders. Mrs. Chiedu proposed clustering producers from West and East Africa to overcome such challenges, encouraging collaboration to leverage regional strengths.
The workshop also focused on equipping participants with negotiation strategies and deal-making skills, particularly for women and youth entrepreneurs. One success story from a previous trade mission to Kenya resulted in a $500,000 sesame seed deal. Mrs. Chiedu revealed plans for a follow-up trade mission to Kenya and Tanzania later this year, with a focus on activating more deals.
Mrs. Comfort Adjahoe-Jennings, President of the Africa Women Entrepreneurship Program (AWEP) West Africa, stressed the importance of collaboration among women entrepreneurs. She called for an end to individualism in African business, promoting partnerships to meet growing demand and generate jobs, particularly for young people.
The African Continental Free Trade Area (AfCFTA), a key component of Africa’s Agenda 2063, aims to boost intra-African trade and strengthen Africa’s position in global markets. The West Africa Meets East Africa initiative is seen as a crucial step towards achieving this goal, fostering cross-regional collaboration and business linkages to drive economic growth.
Notable attendees at the workshop included representatives from Afreximbank, the International Finance Corporation, and several women's business networks across West Africa.