Shettima Optimistic About AfCFTA’s Impact on Africa’s Economy

By Caroline Ameh

Vice-President Kashim Shettima shared his positive outlook on the African Continental Free Trade Area (AfCFTA) during a breakfast meeting with African Heads of State on the sidelines of the World Economic Forum (WEF) in Davos, foreseeing significant growth in the continent’s Gross Domestic Product (GDP).

According to a statement by Shettima’s spokesperson, Stanley Nkwocha, the Vice-President highlighted the potential of AfCFTA to boost Africa’s GDP by $450 billion by 2035, with exports expected to rise by over 81%. Shettima stressed the importance of not allowing the AfCFTA agreement to fail, given its role in increasing intra-Africa trade, which currently stands at 15%.

“Africa’s trade could see a 52.3% boost by 2025. Quick resolution of agreements and the removal of impediments are essential for smooth and free trade,” remarked Shettima.

He acknowledged the challenges of slow negotiations and clashes between national and continental priorities, urging African nations to prioritize speed and cohesion. Shettima drew parallels with trade unions in other continents, emphasizing the need for African leaders to empower their countries for self-sufficiency.

In a separate session welcoming investors, Shettima assured foreign investors that Nigeria, under President Bola Tinubu’s administration, is actively working towards becoming a favorable investment destination. He highlighted Nigeria’s economic diversification away from crude oil, embracing technology, arts, culture, creativity, and industrialization.

Shettima emphasized Nigeria’s commitment to global best practices, with Dr. Ngozi Okonjo-Iweala leading the World Trade Organization. Notable measures such as removing foreign exchange bans on 43 trade items and liberalizing the downstream petroleum sector were mentioned as steps towards full trade liberalization.

The Vice-President outlined key priorities, including repositioning the energy sector, significant infrastructure investments, and active participation in global value chains. He expressed confidence in achieving a $1 trillion economy within eight years, underlining a new era of accountability and productivity under President Tinubu’s leadership.

Shettima concluded by highlighting emerging sectors such as the Blue Economy, Digital Economy, Steel sector, Gas Subsector, and Alternative Energy, showcasing Nigeria’s commitment to reshaping its image, addressing insecurity, and becoming a key player in the global economic landscape.