By Jeph Ajobaju, Chief Copy Editor
More than 100 million Africans can be yanked of the grip of poverty if the potential of the African Continental Free Trade Area (AfCFTA) is fully harnessed to raise wages, including those of women and unskilled workers.
The Central Bank of Nigeria (CBN) made the point after reports that AfCFTA can facilitate a $2 trillion investment in manufacturing and power in Nigeria and other African countries to create 3.8 million jobs and reduce unemployment.
CBN Corporate Communications Director Osita Nwanisobi said the bank’s primary goal is to restore economic stability by assisting individuals, Small and Medium Sized Enterprises (SMEs), and corporations badly impacted by the pandemic.
He explained at the 16th International Trade Fair organised by the Abuja Chamber of Commerce and Industry (ACCI) that the CBN’s Anchor Borrowers Programme (ABP) has provided over N756 billion to 3.7 million farmers cultivating over 4.6 million hectares, per Nairametrics reporting.
Production for jobs, self sufficiency
Nwanisobi spoke on the theme, “Exploring the Opportunities of African Continental Free Trade Area (AfCFTA)”.
“AfCFTA also provides Nigeria and other member countries with access to a large market, as the movement of capital, people, goods and services would become easier within the free trade area,” he said.
“Similarly, it will facilitate an increase in trade volumes, competitive prices and technological transfers among member countries; and serve as a potential to boost intra-African trade, lift over one hundred (100) million Africans out of poverty while increasing wages including those of women and the unskilled workers if implemented successfully.
“At the Central Bank, we continue to take active steps and make policies to encourage growth and sound financial system, which would foster economic development, restore confidence in the economy and effectually conserve the reserves.”
Nwanisobi urged Nigerians to focus on the production of items with comparative advantage and “buy Nigerian products to grow Nigeria as a nation that is totally self-sufficient in producing what we consume and creating jobs for our youth will ultimately drive sustainable growth that will make life better for all our citizens.”
The CBN, he added, would “not rest on its oars until Nigeria gets to its destination of inclusive economic growth and sustainable development.”
Manufacturing, power can create 3.8m jobs
Nigerian youths are heading overseas mainly because of unemployment, but there is a forecast of 3.8 million jobs in a report on ‘Africa’s Green Manufacturing Crossroads’ partly funded by the United Kingdom and released by McKinsey & Co, a global consulting firm.
A total of between 10,000 and 15,000 passports are issued monthly by the three passport offices in Lagos alone – in Alausa, FESTAC, and Ikoyi – as Nigerians leave in droves and post “Goodbye Nigeria” on social media on getting abroad.
United Nations Economic Commission for Africa (ECA) expects economic growth on the continent to drop 4.1 per cent in 2020 but rebound 5 per cent in 2021.
ECA Executive Secretary Vera Songwe said AfCFTA has the potential to increase Africa’s Gross Domestic Product (GDP) by $1 trillion.
Decarbonise existing industries
McKinsey added that “the continent could create a net 3.8 million jobs if it could attract a $2 trillion investment in manufacturing and power.
“Nigeria and other African nations will need $2 trillion for low-carbon emitting manufacturing without the added costs of transitioning from fossil fuel-based factories.”
McKinsey Nairobi Senior Partner Kartik Jayaram said Africa has the opportunity to leapfrog high carbon-emitting manufacturing processes instead of building a low-carbon industry from scratch.
“Africa could avoid future costs by sidestepping the expensive transition from fossil fuels to renewables,” he stressed in the report, published by Nairametrics.
According to the report, the continent emitted a total 440 megatonnes of carbon dioxide equivalent in 2018, almost a third from cement and 13 per cent released by coal-to-fuel plants operated by Sasol Limited in South Africa.
South Africa was the largest emitter.
Nigeria was the fourth-largest emitter of carbon dioxide equivalent, emitting about 30 megatonnes with the largest amount from cement manufacturing. Egypt was the second-largest emitter, followed by Algeria.
The report warned that if Africa fails to commit to decarbonisation, it could double the current rate to 830 megatonnes by 2050.
African countries would need to tap green finance instruments such as carbon credits, green bonds, green insurance and payment for performance linked to green outcomes, the report said.
“To decarbonise existing industries, $600 billion would be needed while $1.4 trillion is needed for new green businesses.
“Carbon capture and storage and the production of green hydrogen are two technologies that could help the continent attain the target.”
The report added that new industries that could be developed ranged from bioethanol and cross-laminated timber to electric vehicles and green hydrogen.
AfCFTA can grow Africa’s GDP by $1 trillion
Songwe made her GDP remarks at the ECA Regional Business Forum, titled, “Empowering women youths to drive Africa’s transformation agenda,” per reporting by The PUNCH.
Her words: “In a crisis, the first thing we want to do is ensure we prevent good businesses from falling below and focus a lot on retention. Africa, in particular, the West African region, has the population dynamics working for it.
“The African population is estimated at 1.3 billion in 2020 of which over 250 million are the youth and it is estimated that 10 million to 12 million are entering the workforce every year but only 3.1 million of them find jobs.
“AfCFTA stands to grow Africa’s GDP by an additional one trillion dollars to deliver on what is needed: first unlocking our borders, building value chains and making sure the African women all work together to create the supply chain for textile, fashion, for agro-industry.”
Finance Zainab Ahmed stressed at the event that it has become critical for society to empower young men and women.
