Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), has called on African nations to focus on enhancing the value of their commodities and promoting intra-continental trade by developing sectors such as textiles and digital services.
In a conversation with ARISE NEWS at the World Economic Forum in Davos, Okonjo-Iweala pointed out that the majority of Africa's trade involves raw materials and commodities, with around 60 percent of exports to other areas remaining in unprocessed forms. She stated that increasing the value of these products is essential for expanding trade among African nations, which currently represents only 15 to 20 percent of trade across the continent.
She remarked, "We must add value to our products, even for the intra-African market, since we are exchanging goods amongst ourselves. Our exports primarily consist of raw commodities, and 60 percent of our sales to other countries are still in raw form. While I recognize that changes are occurring and African leaders are beginning to acknowledge the need for transformation, it is crucial to expedite this process and enhance value. This way, we can exchange a broader range of products among ourselves."
The WTO leader highlighted Nigeria's potential to become a key player in specific African markets like textiles and apparel, citing the country's burgeoning fashion industry. Additionally, she referenced growing segments such as digital pharmaceuticals and digital services, where African women and youth are making notable strides.
"I am quite optimistic that Nigeria could dominate the African market for textiles and apparel due to our strong fashion industry. The Honourable Minister of Industry, Trade and Investment is already working on initiatives to scale up in these areas. We need to enhance these sectors to capture a larger share of the African market because we possess a significant advantage there. Furthermore, sectors like digital pharmaceuticals and other digital services also hold promise. Our women and youth are achieving remarkable things, and if we can leverage this potential, we can secure a substantial portion of the African market," she added.
In response to concerns about the current state of global trade, Okonjo-Iweala rejected the notion that multilateralism is over.
"There are still many opportunities available for Africa and Nigeria amidst the current global trading climate, despite the prevailing negativity surrounding trade. While many reports suggest that global trade has collapsed and that trade regulations are ineffective, nearly three-quarters of world trade continues to operate under WTO guidelines.
Despite the disruptions faced, the system is resilient, and I believe we can build on that resilience because numerous countries and businesses are now looking to diversify their trading relationships due to the risks associated with over-reliance on specific countries for both supplies and market access.
"Many enterprises are recognizing that dependence on particular nations for the majority of their supplies is risky, especially when a single country holds power over essential supplies and markets. This has led them to seek diversification. For Nigeria, with a population of 220 million and a growing middle-class, there is a real opportunity to attract these supply chains that are looking to diversify in sectors such as pharmaceuticals, textiles, and agro-processing. There are numerous areas where we can have a competitive edge. This moment is crucial, but we have to actively pursue it rather than wait for it to come to us, and I believe this is the right direction to take," she concluded.
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