Wamkele Mene, the Secretary General of AfCFTA, emphasized that African nations are aiming to reduce their dependence on Western countries by bolstering intra-Africa trade. He conveyed this message during his keynote speech at the 2023 Zenith Bank International Trade Seminar on Non-Oil Export, focusing on the theme “Nigerian Non-Oil Export Industry: The Present, The Future.” Mene highlighted the need for economic diversification as a central goal for enhancing Africa’s intra-trade efforts and their contribution to the global GDP.
Addressing the significant trade imbalance between Africa and the rest of the world, Mene stated, “Africa’s primary objective should be economic diversification to lessen the reliance on natural resources as the main source of export revenue for governments.” He pointed out that while 55 African countries collectively contribute only 3.1% to global GDP and 2.2% to global trading output, a single nation like Singapore contributes over 6% to both global trade and output.
Mene underscored that the trade deficit presents an opportunity for Africa to accelerate national development, enhance global competitiveness, and generate employment opportunities. In terms of food security, Mene emphasized that intra-African trade could help reduce Africa’s vulnerability to external geopolitical and economic shocks.
He referred to the current situation, stating, “The lack of economic diversification often exposes Africa to external shocks, undermining its long-term economic growth prospects.” He attributed up to 35% inflationary pressures on food prices in Africa to the ongoing geopolitical tensions between Russia and Ukraine, which have had an adverse impact on food security.
Mene recounted President Kagame’s observation that a European country with a population of 43 million is providing food for a continent of 1.3 billion people, highlighting the need to reverse Africa’s dependency on others for food security and public health.
Mene argued that outdated trade rules and patterns have hindered intra-trade activities within Africa. He noted that countries such as Zimbabwe, Ethiopia, and Uganda have the capacity to contribute to the continent’s food security.
The fundamental objective of AfCFTA, according to Mene, is to eliminate barriers to intra-African trade and enable the continent to meet its own needs. He also highlighted the progress made by AfCFTA, in collaboration with AU and Afreximbank, in introducing a Pan African Payment & Settlement System, aiming to facilitate intra-African trade by using local currencies instead of the US Dollar, thereby reducing trade costs.
Additionally, Mene praised Zenith Bank for its commitment to digitizing trade in Africa. AfCFTA signed a Memorandum of Understanding with Zenith Bank to develop a smart trade portal for the continent, with Zenith Bank contributing $1 million towards the project. Mene expressed his appreciation for Zenith Bank’s initiative and funding, noting that it was the first time he had been offered a million dollars for such a purpose. He emphasized that the portal’s creation was driven by Zenith Bank’s determination to advance trade digitization in Africa.
