Posted by admin on Feb 8th, 2012 and filed under Features. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
Advocates of increased trade among West African countries always stress the need to put in place reliable international transport systems to facilitate the movement of goods and services in particular.
In the commercial city of Aba, for instance, many traders emphasise the need foralternative means of transportation to ferry their products from the city to different locations in West African countries.
They argue that road transportation cannot support the growing volume of trade with their business partners in these countries.
“If we have alternative means of transporting our goods, it will go a long way in aiding our goods to get into the markets of many countries,’’ says Chidi Umeafor, a shoe manufacturer at Ariara market in Aba.
Umeafor is one of several young Nigerian manufacturers who are desirous of attaining a smooth flow of business transactions within the West African sub-region.
Economic experts, however, note that the economies of most African countries are growing steadily in spite of the current global crisis which has negatively affected the economies of many developed countries.
The experts argue that the effective collaboration of every sector of the national economies of African nations is, nonetheless, required to reposition the economies to engender any meaningful national development.
They, nonetheless, note that international trade in the West African sub-region has been fraught with various challenges, thereby stunting the countries’ economic development.
However, several efforts have been initiated to facilitate and deepen intra-regional trade within West Africa, in line with the ECOWAS Protocols on Free Movement of Persons, Goods and Services.
As part of these efforts, the Nigeria Export Import Bank (NEXIM) recently initiated a sea-link project to boost trade within West Africa, while deepening payment systems and improving the access of traders and exporters to credit facilities.
Mr Roberts Orya, Managing Director of NEXIM, says that the bank embarked on the project to deepen trade within the West African sub-region, in particular.
“The project is geared towards setting up a maritime shipping company that would link seaports on the West African coast in order to facilitate trade and ensuresmooth transportation of goods among ECOWAS member states,’’ he says.
Mr Traore Tidiane, the Project Consultant, argues that maritime trade within the sub-region has been largely dominated by inadequate, unsafe and old vessels, without due regard for passenger safety.
He says that that the sea-link initiative is designed to offer a safe, secure and modern fleet with experienced international management, adding that shipping service will also have the capacity to compete effectively with the fleets in other regions.
“The service will offer a combination of passenger and cargo services that are attractive to traders,’’ he says, adding: “The capital outlay for the project is around 61.5 million dollars and the funds will be raised through 60 per cent equity and 40 per cent debt.’’
Orya explains the rationale behind the project succinctly, saying: “The primary objective of the NEXIM project is to deepen trade among West African states, while reducing the current high costs of shipping goods along the West African and Central African coastlines.’’
He adds: “This is because movement of goods between West African destinations are often carried out through Europe or South Africa due to the non-existence of direct coastal sea links in West Africa..’’
Orya stresses that the project initially involves the setting up of Sea-link Promotional Company Ltd., a Special Purpose Vehicle (SPV) created to promote the establishment of a maritime shipping service that would connect West African coastal ports, including those of Central Africa, to boost trade within the region. He says that the project will later involve the process of raising equity, adding that at that stage, the private sector will come in and buy shares.
“We have identified that one of the barriers to deepening trade within the ECOWAS sub-region is how to move goods within the region; if we have to increase the flow of trade in the region, we have to set up a vehicle to drive this,’’ Orya says.
“That explains the raison d’être behind our initiative. We need to have an efficient transportation system for the movement of goods from one country to another, while creating jobs for the teeming youths,’’ he adds.
In spite of the fact that NEXIM initiated the sea-link initiative, it is, nonetheless, collaborating with the ECOWAS Commission, the Federation of West African Chamber of Commerce and the region’s private sector.
Orya says that the hub of the sea-link project is in Nigeria, reiterating that the project was initiated to scale down the hurdles associated with the transportation of goods within the West African sub-region.
Sharing similar sentiments, Mr Bashir Wali, NEXIM’s Director of Corporate Services, stresses that the initiative will particularly facilitate the growth of trade in West Africa.
He says that the project will also promote the fulfilment of ECOWAS integration schemes, as it is aimed at ensuring the free flow of trade within the West African sub-region.
Experts are of the view that the sea-link project will aid the efforts of Nigerian manufacturers and exporters to have a structured access to the West African and Central African markets.
This is because most of the consumer products and raw materials in the ECOWAS markets originate from Nigeria, some of the experts say.
The initiative is, therefore, expected to boost efforts to actualise the aspirations of Nigerian traders and manufacturers to gain access to regional markets, thereby boosting manufacturing, foreign exchange earnings and job creation in the country.
Prof. Wilson Attah, the former President of Ghana National Chamber of Commerce, says that the initiative will promote regional integration and bring about economic development.
He notes that the West Africa has been losing about 45 per cent of its cargoes to European shipping lines because of poor maritime services in the sub-region.
“Apart from the fact that shipping of goods is going to be cheap in the region, the introduction of the initiative will also boost the development of the region’s tourism sector.
“We are grateful to NEXIM for the initiative and the major role it is playing in the project,’’ he says.
The President of ECOWAS Commission, Mr James Gbeho, says that the sea-link initiative is laudable, pledging the Commission’s support for the project that is aimed at boosting trade within the sub-region.
He particularly pledges the support of ECOWAS Commission for the company that was set up to oversee the sea-link project.
“We will support the company not only because it is an indigenous West African company but also because the initiative’s objectives are aimed at facilitating transportation of persons and goods within West Africa, which falls within the ECOWAS vision for the region,’’ he says.
“It is also in line with our integration efforts,’’ he adds.
Gbeho stresses that ECOWAS has shifted its focus from its member states to the people since 2007 so as to speed up efforts to integrate the economies and infrastructure of West African countries, while initiating people-oriented development plans.
“Unless we are able to reach that point, we are not going to develop fast enough and we need to develop the continent.
“Since NEXIM’s vision conforms to our own vision in ECOWAS, there is nothing we can do than to support the initiative,’’ he adds.
Gbeho emphasises that the maritime industry in West Africa is one of the sectors which could meaningfully promote ECOWAS integration aspirations.
Apart from the myriad economic benefits of the sea-link project, maritime experts believe that the initiative will also improve the capacity of West Africa’s maritime industry, while providing alternative sea transport routes for modern and multi-purpose vessels.
Besides, the project will foster inter-regional maritime passenger and freight services, while serving as a catalyst to trade development in and between Africa’s sub-regions.
“The sea-link project will certainly stimulate the economic growth of West African countries,’’ some of the experts say.
Edith Nnaji