- September 2, 2021
- Posted by: adminer
- Category: Trade and Industry
Vice President Yemi Osinbajo of Nigeria has urged Africa to take the right policy actions to actualize the limitless opportunities for industrialisation offered by the African Continental Free Trade Area (AfCFTA).
He stated that such actions include the protection of local industries and improving value chains.
Osinbajo stated this in a message delivered today at a ‘Roundtable on Industrialization in Africa themed “Positioning African Industries for Economic Transformation and Continental Free Trade”, organized by the Manufacturers Association of Nigeria (MAN) to celebrate its Golden Jubilee.
According to the Vice President, “for certain, the AfCFTA is indispensable if industrial development is to take off in Africa because it offers wider markets and economies of scale which are essential for manufacturing to be competitive.
“We must take policy actions to create an environment in which businesses can thrive. To start with, we must adopt the right type of macroeconomic and industrial policies.
“It is important for African governments to provide a stable macroeconomic environment which avoids and smoothens out volatility in prices, sharp deteriorations in the current account and budget deficits and of course, rapid accumulation in debt burdens.”
Speaking on actions that will boost manufacturing, Prof. Osinbajo said “on the industrial side, policies like tariffs, quotas, subsidies and non-tariff barriers which protect our infant industries so that they can create jobs and enable learning are vital.”
He then added that “well negotiated rules of origin are important in the context of the free trade agreements as they are key to preventing trans-shipment and the deflection of trade.