Africa yet to realise true potentials in trade relations with India – Minister

Nigeria’s Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo has lamented that African countries have not realised their true potential in their bilateral trade with India.

The Minister at the 16th CII_EXIM Bank conclave on India and Africa Project Partnership with the theme: “Harnessing the Africa-India Opportunity: Connect, Create, Collaborate”, said despite the fact that India is Africa’s third largest trading partner, African countries predominantly export raw crude oil and other extractive resources to the Asian country.

According to him “As you may be aware, India is now Africa’s third largest trading partner. Yet the bilateral trade data and patterns suggest the true potentials have not yet been realized as African countries predominantly export raw crude oil and other extractive resources to India.

“In the light of the Africa Continental Free Trade Area  (AfCFTA) agreement, as African countries aim to reduce their economic dependence on resource trade, India could play a catalytic role in Africa’s collective efforts to boost the region’s manufacturing and service exports.”

The Minister listed the main export destinations for India in Africa to include South Africa, Kenya, Egypt, Nigeria, Tanzania, Mauritius, Mozambique, Algeria, Ghana, and Ethiopia.

Intervention plan

The Minister noted that to improve the trade relations with India, the Federal Government has prepared an intervention program articulated in the form of an implementation plan relative to the different sectors in the  economy.

He said the sectors included agriculture, manufacturing, mining, oil & gas, tourism & hospitality, transport, ICT and digital economy.

“Government economic policy favors and places priority on greater trade and investment in agricultural production and agro- processing industries, construction, tourism, manufacturing and export.

“These Investment Opportunities are embedded in the following sectors of Nigerian economy: agriculture, Spsolid minerals, tourism, power sector, construction and transportation.

“Furthermore, the Federal Government through the National Action Committee on AfCFTA is also working towards setting up AfCFTA implementation Focal Desks in States and have urged state governments to explore their areas of comparative advantages for economic growth and job creation,” Mr Adebayo said.

The Minister stated that the AfCFTA has great potential of creating a combined consumer and business spending of about $6.7 trillion, while offering some of the world’s biggest opportunities for attracting Foreign Direct Investment (FDI).

Emmanuel Ukoh