The East African Business Council (EABC) has signed a memorandum of understanding with the Abuja Chamber of Commerce and Industry (ACCI) to strengthen trade cooperation between East and West of Africa.
Speaking at the signing ceremony, Chief executive officer of EABC Mr John Bosco Kalisa said “intra-African trade is currently low at 14.4 per cent of total African exports.” He said the African Continental Free Trade Area (AfCFTA) is set to boost intra-African trade by about 33 per cent.
He said in 2021, EAC bloc goods export to Economic Community of West African States (ECOWAS) reached $91 million while imports $256 million.
EABC and ACCI partnership will champion AfCFTA implementation by collaborating and linking businesses to access export/import and investment opportunities.
President of ACCI Dr. Al-Mujtaba Abubakar Gumi said “The partnership will boost commercial information exchange, customer due diligence information and offers a platform for alternative dispute resolution on trade matters.”
The ECOWAS has a combined GDP of $734.8 billion and population of over 300 million people.
Following disruption of global supply chains due to COVID-19, EAC imported more from ECOWAS region. EAC imports from ECOWAS hit $488.4 million in 2020 a 132 per cent from $209 million 2019.
Top EAC product imports from ECOWAS are precious stones, animal or vegetable fats, mineral fuels, glass, machinery, essential oils and cocoa while top EAC exports to ECOWAS include textile fibres; coffee, tea, maté and spices, pharmaceutical, raw hides and skins, electrical machinery, furniture; miscellaneous chemical products and tobacco.
Highlighting the significance of the MOU to Africa, senior international trade policy/trade law expert and the technical partner lead, Mr. Olusegun Olutayo, said, “this partnership is premised on mutual benefits, understanding of the AfCFTA instrument and its use as a tool to advance developmental regionalism”.
As outlined in the MoU, EABC, ACCI and the Technical Partner also commit to jointly organize outward trade mission, study tours, exhibition, and conferences.
