NOT since the creation of the World Trade Organisation in 1995 has a free trade deal involved so many countries. On March 21st in Kigali, the Rwandan capital, 44 African leaders signed an agreement to create a “Continental Free Trade Area” (CFTA). The pact will eliminate tariffs on 90% of products, liberalise services and reduce non-tariff barriers. The second phase of negotiations, to begin later this year, will focus on investment, competition and intellectual property rights. Enthusiasts say that free trade will join up Africa’s fragmented markets, ignite industrialisation and create jobs. But 11 African countries, accounting for 37% of the continent’s GDP, sat out. Among them were Nigeria and South Africa, the two largest African economies.

Nigeria was not part of the deal. It is not implacably opposed. It chaired the negotiating forum and hopes to host the CFTA secretariat. Its Federal Executive Council had approved the signing of the deal. But Muhammadu Buhari, the president, cancelled his flight to Kigali at the last minute. There is an election next year, when he may run again, and he needs to keep powerful interest groups onside. Labour unions have called the trade deal a “radioactive neo-liberal policy initiative”. The manufacturers’ association has warned that imports from other continents will be traded under African labels, undercutting Nigerian business. This is not all a paranoid fantasy. Thai rice, repackaged as local produce, is already smuggled in huge quantities through Benin. Yet most of the confusion around the deal comes from a lack of consultation, which is the main cause of ire. Chiedu Osakwe, Nigeria’s chief negotiator, says that many concerns are “caught up in the whole populist globalisation blowback” (union leaders approvingly cite the policies of Donald Trump). Given time, he thinks, Nigeria will come round.

Nigeria is a harder case. It is not implacably opposed. It chaired the negotiating forum and hopes to host the CFTA secretariat. Its Federal Executive Council had approved the signing of the deal. But Muhammadu Buhari, the president, cancelled his flight to Kigali at the last minute. There is an election next year, when he may run again, and he needs to keep powerful interest groups onside. Labour unions have called the trade deal a “radioactive neo-liberal policy initiative”. The manufacturers’ association has warned that imports from other continents will be traded under African labels, undercutting Nigerian business. This is not all a paranoid fantasy. Thai rice, repackaged as local produce, is already smuggled in huge quantities through Benin. Yet most of the confusion around the deal comes from a lack of consultation, which is the main cause of ire. Chiedu Osakwe, Nigeria’s chief negotiator, says that many concerns are “caught up in the whole populist globalisation blowback” (union leaders approvingly cite the policies of Donald Trump). Given time, he thinks, Nigeria will come round.

 

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The Olatorera Consultancy brand has grown from an ambitious solo-preneur to a team of over 15 people highly assertive on providing the seal and stamp of “Africa’s Best” to great businesses in Nigeria and beyond. Chief Executive Consultant, Olatorera Oniru is very passionate about seeing businesses succeed and operate optimally. She is also notably passionate about witnessing Africa transformed into one of the world’s greatest continents. Olatorera Consultancy has an annual outline of businesses we work with. We currently do not accept unsolicited applications. To network with the team at Olatorera Consultancy Limited, please add your company to the reviews page here. An Olatorera Consultancy company representative may be in touch with you shortly after reviewing your company’s readiness for business consultation services.