Africa must stop exporting raw materials, says AfCFTA

Africa must shift from exporting raw materials to adding value to its natural resources to fully capitalize on the opportunities presented by the African Continental Free Trade Area (AfCFTA), stated Patience Okala, National Coordinator and Chief Executive Officer of the Nigeria AfCFTA Coordination Office.

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AfCFTA is not only about tariffs; it is also about value addition. Africa has to stop exporting raw materials. We need to add value and ensure that beneficiation is done on the continent.

Okala stressed that value addition and beneficiation are essential for Africa's industrialization and sustained economic growth. She explained that the AfCFTA serves as a framework for industrialization, value addition, and job creation across the continent, going beyond mere tariff elimination.

"AfCFTA is not only about tariffs; it is also about value addition. Africa has to stop exporting raw materials. We need to add value and ensure that beneficiation is done on the continent," Okala said at the Streamsowers & Köhn 20th Anniversary Business Forum. She added that Africa’s economic transformation hinges on the effective implementation of the AfCFTA, not just the signing of trade agreements.

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We have moved beyond negotiations. The success of AfCFTA will be measured by the extent to which businesses can access new markets, trade seamlessly across borders, and benefit from the opportunities created by the agreement.

Nigeria has intensified its efforts to implement the agreement, including developing simplified AfCFTA guides in six languages to assist businesses. Okala called for stronger collaboration among governments, regulators, and the private sector to dismantle trade and investment barriers and foster a truly integrated African market. She emphasized the collective responsibility to translate AfCFTA opportunities into practical realities for businesses, particularly MSMEs, women-owned enterprises, and young entrepreneurs.

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As we move from policy to implementation, our collective responsibility is to ensure that the opportunities created by AfCFTA become practical realities for businesses, particularly MSMEs, women-owned enterprises, and young entrepreneurs across the continent.