The Nigeria-Namibia Chamber of Commerce has emphasized the need for state governments in Nigeria to enhance their trade and investment relationships with other African nations as a means to drive economic growth and enhance the well-being of their populations. In a recent statement, Ben Ojo, the President of the Chamber, articulated the significant potential of intra-African trade during the Namibia-Delta State Trade and Investment Summit held in Delta State. He underscored that trade is universally acknowledged as a crucial catalyst for economic development, highlighting its successful role in various global regions that have managed to lift their citizens out of poverty through trade activities.
Ojo drew attention to the disheartening fact that only 13 percent of Africa’s trade occurs between its own countries, a figure starkly lower compared to 60 percent in Europe and 40 percent in North America. This low level of intra-African trade limits economic opportunities across the continent, blocking African nations from leveraging trade as an effective engine for rapid and sustainable development. Furthermore, while informal cross-border trading pushes the total intra-regional trade figure to around 20 percent, it still remains significantly below international benchmarks, exhibiting a considerable gap in the continent’s trading potential.
The underperformance of intra-African trade contributes to a situation wherein African countries are not fully able to capitalize on the economic synergies and complementarities that exist among their markets. Ojo pointed out that many goods and services that could be competitively sourced from other African nations are often imported from outside the continent, underscoring a missed opportunity for economic growth and integration. He stressed that enhancing trade between African countries is essential not only for unlocking economic opportunities but also for creating sustainable economic networks that can support robust growth.
Ojo elaborated on the various benefits that could stem from increased regional trade, such as the development of regional value chains, heightened innovation, and improved productivity levels. By fostering greater trade relations, African countries could achieve economies of scale, thereby reducing production costs and enhancing the competitiveness of their industries. This interdependence could ultimately lead to a more robust economic environment across the continent, positioning African nations to be more resilient and better equipped to face global economic challenges.
In recognizing the initiative of Delta State in organizing the trade summit, Ojo urged other states to follow suit and actively engage in promoting international trade and investments. He commended the Delta State Government for demonstrating a visionary approach that prioritizes the well-being and prosperity of its people through enhanced trade initiatives. His call for action serves as a reminder for all African states to become proactive in developing their trade capacities and seeking collaborations that can lead to improved economic outcomes.
Ultimately, the message from the Nigeria-Namibia Chamber of Commerce reinforces the notion that intra-African trade is vital for economic integration and development within the continent. By working towards enhanced cooperation and trade within Africa, countries can unlock significant economic potential, elevate the living standards of their citizens, and create a more interconnected and prosperous continental economy. The commitment to deepen trade ties and explore shared economic opportunities is essential for fostering a brighter economic future for all African nations.
