Creating an Efficient Logistics System: A Prerequisite for Intra-African Trade

Sourced Photo

In recent years, the Africa Free Trade Area Agreement (AfCFTA) has emerged as a game-changer for African trade. Ratified in 2019, the agreement aims to unify the African continent into a single market for goods and services, promoting economic growth, job creation, and intra-African trade. But to bring this vision to life, the successful implementation of the agreement will depend on many factors, including a robust logistics system.

The AfCFTA is poised for success, and according to Michael Makinde, a distinguished leader in Nigeria’s logistics sector, the key to unlocking its full potential lies in logistics. Makinde boasts over two decades of experience in the supply chain, offering innovative and efficient solutions for technology, operations, and policy.

Makinde asserts that the AfCFTA holds enormous potential for African nations to enhance their trade ties and diminish their reliance on foreign markets. Nevertheless, for the pact to bear fruit, African countries must collaborate to establish a seamless logistics system interconnecting member nations. “An effective logistics system is an indispensable instrument for advancing trade within the bloc,” Makinde emphasizes.

The smooth operation of the AfCFTA hinges on effective trade facilitation. In order to enable the unrestricted flow of goods and services, African nations must optimize their trade processes with contemporary and efficient procedures, such as border management, customs clearance, and transport infrastructure. “Trade facilitation is the cornerstone of the AfCFTA’s success and will stimulate trade within Africa,” says Makinde.

Collaboration amongst member countries is necessary to establish a unified regulatory framework for trade. The framework should comprise common standards and regulations to smoothen the movement of goods and services across borders. Makinde highlights the need to develop such a framework collectively to bolster the free flow of goods and services.

The AfCFTA’s success hinges on several factors, such as political commitment, infrastructure investment, and a skilled workforce. Nonetheless, logistics will emerge as the linchpin of the agreement’s implementation. To achieve a smooth interaction among countries in the free trade zone, African nations must pool resources to create a dynamic logistics system. This entails embracing modern technologies, injecting funds into infrastructure, and developing a proficient labor pool.

According to Makinde, the logistics sector holds the key to successfully implementing the AfCFTA. He stresses the importance of African business leaders, the African community, and the global business community recognizing the crucial role of logistics in expanding regional trade in Africa. “As we strive towards the successful implementation of the AfCFTA, it is imperative to acknowledge that logistics serves as a critical catalyst for trade and economic growth,” Makinde concludes.


This article features branded content from a third party. Opinions in this article do not reflect the opinions and beliefs of CEO Weekly.