Industry leaders and stakeholders have identified inadequate standardisation, inefficient logistics, and policy discrepancies as major hurdles to intra- African trade. They have called on African governments to prioritize enhancing value addition and ensuring smooth movement of goods across borders.
This revelation came forth during the West Africa Industrialisation, Manufacturing & Trade Summit & Exhibition held in Lagos.
The panel included prominent figures such as George Onafowokan, Managing Director/CEO of Coleman Technical Industries Limited; David Oke, Vice President of the World Trade Center Lagos; Taiwo Ajetunmobi, who represented the Nigeria-China Strategic Partnership; Bowale Adeoye, Founder and CEO of SeedaTree Capital; and Mudiaga Mowoe, Founder/CEO of Matta.
Onafowokan, whose company specializes in the production of wires and cables, pointed out that the lack of harmonized standards and logistical issues present the most significant challenges to intra-African trade.
"While we have made strides towards standardisation, it is crucial that any standards in place be universally accepted across nations. If a product receives approval in Nigeria, it should likewise be acceptable in Ghana or Cameroon," he commented.
He stressed that certification does not constitute the main barrier; instead, it is the difficulty in transporting goods and people across borders that impedes trade. Onafowokan highlighted the impact of multiple border charges, inadequate road infrastructure, and inconsistent policies as factors detrimental to trade within West Africa and beyond.
"Countries often perceive border crossings as revenue opportunities, which ultimately hampers trade. If I manufacture goods in Nigeria and wish to distribute them within West Africa, the process should be seamless," he asserted, advocating for better container transport systems and streamlined logistics throughout the continent.
Moreover, Onafowokan emphasized that African nations should shift from merely exporting raw materials to constructing competitive regional supply chains.
Citing China's approach, he observed that while the country imports around 40% of the world's copper, it processes and sends out finished products of considerably higher value.
He lamented the paradox whereby Africa continues to export crude oil, cocoa, and other raw commodities only to import more expensive refined petroleum and finished chocolate products.
"It is illogical that we consider ourselves the global source of raw materials while being the largest consumers of the finished products derived from those same materials," he remarked. "Until we prioritize value addition, our non-oil exports will remain lower than oil exports."
Onafowokan also urged for trade policies that foster local manufacturing rather than dependence on imports.
Regarding the importance of the summit, he noted that it represents the first genuinely business-to-business (B2B) focused industrial assembly for West Africa.
"This differs from standard business-to-consumer exhibitions. It fosters opportunities for inter-business collaboration and provides a platform for direct engagement between government and private sector stakeholders on enhancing the ease of conducting business," he commented.
Concerning global economic trends, he cautioned that geopolitical tensions, particularly those influencing global oil markets, could adversely affect manufacturing due to soaring energy and logistics costs.
"In any conflict situation, crude oil prices soar, therefore increasing energy, transport, and production costs across various industries. We can only hope this remains a temporary situation," he added.
John Enoh, Minister of State for Industry, Trade, and Investment, also spoke at the summit, praising Coleman Technical Industries for its quality and reputation. He emphasized that Nigerian manufacturers must harness excellence to expand their reach both within and outside the country.
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