Following the successful commencement of the Guided Trading initiative [GTI] facilitated by the Secretariat of the African Continental Free Trade Area [AfCFTA] in October 2022, DevDispatch contributor Adebayo Abubakar caught up with a chieftain of a local trade association in Nigeria- Kwara Chamber of Commerce, Industry Mines and Agriculture [KWACCIMA]-Ayodimeji Olalekan Fatai for a one-on-one interview. In this exclusive interview, Fatai bares his mind on how commendable the commitment of Kenya and other East African countries is, and what the rest of the continent should do, to complement their encouraging moves.

Enjoy!

Adebayo: Please introduce yourself

Ayodimeji Olalekan Fatai: My name is Mr. Ayodimeji Olalekan Fatai, President of the Kwara State Chamber of Commerce, Industry, Mines and Agriculture (KWACCIMA).

Adebayo: As a stakeholder, how did you receive the news of the shipment of the first consignment of goods from Kenya and Rwanda to Ghana, under the Guided Trade Initiative (GTI) of the AfCFTA?

Ayodimeji Olalekan Fatai: Well, it is very good and exciting news to us to see that at the end of the day, there is the breaking of the ice on this AfCFTA market. Because we’ve waited so long for this. Most countries in Africa have been very cautious [in] taking the lead. But kudos to Kenya, because in the East African region, there has been some trading among them; so, it is easier for them. But for them reaching out to West Africa, is also a good one, and it shows that they have a commitment to this AfCFTA thing. And it is a pointer to other African countries that, “yes”, it is possible. AfCFTA has come to stay. It is possible.

Adebayo: Looking at the Big Boys (Nigeria, South Africa, Ethiopia among others) who are yet to join the train, do you think this is a challenge for them?

Ayodimeji Olalekan Fatai: Yes, of course, they’re challenged. The issue is just that, some of them are used to trading with European and Asian countries. And what they always guard against is the “Rule of Origin”. If you do not clearly state your rule of origin, there could be problems. It is one of the things that are affecting AfCFTA. And countries like Nigeria where there is a large population, and South Africa with high industrialization, need to be careful about the “rule of origin”. And that is why it is taking some time. I know it is slow because of the bureaucracy that has been involved. But it has to be clearly stated, (talking about) what needs to be done regarding the “rule of origin”, as well as the issue of tariffs. You know most countries like Nigeria with a large population, that have been generating huge revenue from tariffs, for instance, now if we’re trading with the rest of Africa, how do we do it (eliminating the tariffs)? So, those are the issues that are still holding the “big boys” as you describe them. But gradually, they are being resolved, and I am sure by the time they’re fully resolved, it will be a good one because the market is so huge. We’re talking about a over two-point-six trillion dollar ($2.6 trillion) market. It is a huge market. And I believe that once these protectionist policies and rules are fully tackled, Africans would know that they have a huge market on their hands, and it would be good for them.

Adebayo: As the President of a local trade association – Kwara Chamber of Commerce, Industries Mines and Agriculture (KWACCIMA) how would you describe your members’ reactions to the success recorded through the AfCFTA’s GTI?

Ayodimeji Olalekan Fatai: Well, the KWACCIMA is a subset within a universal set called Nigeria, it is when Nigeria as a country has fully taken the initiative to participate that KWACCIMA can talk about participation. But what we’ve done as a chamber is to sensitize our members. In 2021, the theme of our Trade fair was AfCFTA, and we invited a resource person from the AfCFTA desk in Abuja, to talk to our members about the processes, the issues, and the challenges that are there. Even the issue of payment and settlement systems, [Pan-African Payment and Settlement System -PAPSS] which are yet to be fully resolved are still there. So our members are ready, waiting on the federal government to give the green light. So, as a chamber of commerce, we’ve already sensitized our members in Kwara, in readiness for the green light, because we have a lot of exporting to do, from Kwara to neighbouring African countries. All we’re doing now is to get the signal from Abuja. Once the details have been taken care of, all we need to do is organise a seminar on how to handle the logistics side of the business.

Adebayo: Thank you for your time.

Ayodimeji Olalekan Fatai: You are welcome!

Adebayo Abubakar is a Nigerian journalist. You can reach him via email, marxbayour@gmail.com