Stakeholders in the Nigerian commerce space have advocated the need for government’s support to boost and promote the automation of trade in the South-Eastern part of Nigeria.
The South Eastern part of Nigeria has been known to be the major host of indigenous economic activities, as it hosts the popular Aba Industrial city, one of the largest African suppliers of leather and clothing products, among others, to various regions of Africa.
According to the United Kingdom AID-PDFII Report on Market Access for Selected Non-Oil Export data, over one million pairs of shoes per week translating into over 50 million per year are largely sold to consumers in West, Central and East African Countries.
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The PDF-Bridge Trade Policy Expert, Olumuyiwa Alaba, in his presentation noted that reliance of businesses from the South-East on traditional business models over the years have made the market more vulnerable to production and supply chain disruptions.
Speaking at a virtual South-East regional dialogue on improving market access through digital trade, organised by the PDF Bridge Program, Alaba explained that promoting automation of trading/business processes through digital trade and e-commerce would provide the most reliable solution to the new physical and social normal.
He said, “Aba Industrial city is one of the largest African suppliers of leather and clothing products, among others, to various regions of Africa.
“Piling up of inventory and loss of fragile and perishable goods in such a market would lead to loss of investment which consequently lead to unemployment, loss of income and livelihood and growing poverty rate”
He explained that digitization of the supply chain for both inputs and finished goods right from invoicing to delivery offer cheaper and more convenient means of exchange.
Alaba added that digital trade and e-commerce provide opportunities to reach new and more distant markets without physical appearance.
“The new normal is pregnant with abundant opportunities which businesses, chambers and the government must be quick to grab.
“South-East Chambers should galvanize various actors and equip them with knowledge of abundant opportunities in the new normal.
“Government must be ready to support automation of South-East Trade to properly mainstream the region into the global non-oil market.”
“The South-East government must create an enabling environment for investors that are interested in providing digital business enabling facilities.”
The Director-General, South East Chambers of Commerce Industry Mines and Agriculture, Henry Awuregu in his remarks said that the unavailability of the required technology poses challenges to the easy automation of business processes in the region.
He said there is a need for the government to take proactive steps to support Small and Medium Enterprises in the digitalisation process.
Awuregu explained that efforts are ongoing through intervention programs at the grassroot level to facilitate the development in business environments.
“There is a need for more sensitization and education programs, to create a shift in the mindset of the people.
“Most traders are still building markets, carrying out export and import in the traditional method which does not tally with the present realities.
“We always have interest in technology but we still lack the needed infrastructure, there is a need for proactive actions from the government to deepen access to technology thereby leading to significant transformation in the way we transact business,” he added.
The Director-General of the Abia State Marketing and Quality Marketing, Sam Hart said that there has not been concerted efforts to boost digitalization in the region.
He said that going forward, there is a need to open up the e-commerce eco-system, create awareness of the benefits embedded in digitalisation and build stronger linkages and partnership to boost the regional business environment.
“In the region, my two year program is to crack the e-commerce ecosystem in Aba market and come up with the best way to sell our product in the e-commerce space.
“Many traders have been defrauded because they do not understand the way it runs, the average Aba trader is used to the traditional method of trade, hence we need to introduce to them the best way to take advantage of the e-commerce space.
“The peculiarity of the Aba market is that they produce for order, they do not produce for shelving, they produce based on orders received, and we must put this into consideration.”
The PDF-Bridge Program Manager, Titilola Akindeinde said that the impact of the COVID-19 pandemic on the way business is conducted globally, has necessitated a new thinking on market access and competitiveness of the South Eastern Industrial City and Hubs.
She explained that digital trade and e-commerce have grown significantly through this year’s challenges and are fast becoming a dominant way of doing business.
“Digital trade and e-commerce has become the mainstay of connecting businesses and consumers globally, diffusing ideas, technologies, and facilitating the co-ordination of global value chains.”
Speaking further,Akindeinde said that the digital economy and e-commerce are now part of consideration in the African Continental Free Trade Agreement Phase II negotiations.
She noted that Nigeria and its industrial trade hubs such as it is in the South East, must therefore be well prepared to ensure maximum gains from the continental free trade which provides a door of opportunity for Nigeria to trade within the African region and beyond with ease.
“We must seek to equip MSME exporters with the knowledge and skills needed to participate in digital trade effectively thereby enhancing their competitiveness in international markets,” she added.