AfCFTA: Concerns over untapped potential of Africa’s 421 ports

The Maritime Organisation of West and Central Africa (MOWCA) has emphasised that Africa is yet to fully capitalise on its marine resources and explore its 421 ports for investment and job creation.

MOWCA highlighted the importance of the ports as critical economic infrastructure for the successful implementation of the African Continental Free Trade Area (AfCFTA).

The World Bank noted that reducing barriers to trade in services is essential to boost intra-African trade, with a projected increase in Africa’s income by $450 billion by 2035.

The Secretary-General of MOWCA, Dr. Paul Adalikwu, delivered a keynote address in Kigali, the Rwandan capital, during the AfCFTA-guided trade initiative programme, BIASHARA AFRICA 2024.

He emphasised that shared logistics, transportation and cross-regional partnerships are essential for overcoming trade barriers on the continent. He identified inefficient logistics and flawed transportation processes as significant barriers to intra-African trade.

Speaking on the role of ports and maritime transport in supporting trading companies and special economic zones across Africa, the MOWCA Secretary-General highlighted that components of port infrastructure, such as docks, piers, channels, harbours and quays, should receive greater attention to facilitate trade.

Nigeria has been grappling with improving efficiency, restructuring, rehabilitating and modernising its port infrastructure nationwide. The Federal Government has been seeking funds to reconstruct and upgrade the deteriorating ports of Apapa and Tin Can Island in Lagos, as well as Eastern ports, including Calabar, Warri, Onne, and Rivers Ports, in addition to reconstructing the Escravos breakwater.

Last week, the Ministry of Marine and Blue Economy, led by Adegboyega Oyetola, initiated a partnership with the Infrastructure Concession Regulatory Commission (ICRC) and the Bureau of Public Enterprises (BPE) to adopt Public-Private Partnership (PPP) models aimed at improving efficiency and modernising Nigeria’s ports.

The minister highlighted the challenges faced by investors who propose ambitious business plans but struggle to secure the necessary funding after receiving government approvals, which has left the ports in a deteriorating state.

The MOWCA Secretary-General identified available technology, uniform standardisation, and geographical proximity as areas where African countries could maximise mutual benefits. He advocated for a country-to-country and business-to-business interface across the continent.

To promote cheaper cargo movement in Africa, he called for the establishment of joint transportation routes to reduce shipping costs and improve vessel turnaround times at various ports. He emphasised the benefits of trading among neighbouring countries with rich historical and cultural ties.

Adalikwu said MOWCA is concerned about the inefficient logistics and flawed transportation processes that hinder intra-African trade and is reaching out to multilateral bodies like the African Union, the Economic Community of West African States (ECOWAS), and the Economic Community of Central African States (ECCAS) for sustainable solutions.

“One of the significant barriers to intra-African trade is inefficient logistics and transportation. Strategic partnerships can help companies pool resources to optimise their supply chains. For instance, companies can share warehousing facilities or establish joint transportation routes to reduce shipping costs and improve the speed of goods movement.

Adalikwu noted that with the rise of digital trade, trading companies can form strategic partnerships to create or expand e-commerce platforms that facilitate cross-border transactions.

According to him, digital platforms reduce the need for a physical presence in multiple countries and offer small and medium-sized enterprises (SMEs) across Africa access to broader markets. He also pointed out that inconsistent standards and certifications can hinder intra-African trade.

According to him, trading companies can form partnerships to mutually recognise each other’s certifications and product standards. He said this approach simplifies cross-border trade and ensures that goods produced in one country meet the standards required in another.

Furthermore, he mentioned that companies can collaborate to develop common quality control mechanisms across multiple markets, ensuring that products meet consumer expectations in various countries.