Value Addition To Agricultural Produce Would Boost Intra-Africa Trade-FAO

The Food and Agriculture Organisation and the African Union Commission has said that there is need for government to pursue industrial transformation policies that support the private sector to add value to African exports and compete with increasing imports.

The duo, in the latest ‘framework to boost intra-African agricultural trade’ under the new African Continental Free Trade Area Agreement, said that increased agricultural trade between African countries is key to promoting sustainable development in the continental food systems.

The framework focuses on expansion of agricultural trade between African countries, as well as increase the contribution of agricultural sector to creating an inclusive growth for Africa.

It stated, “A key priority is the pursuit of industrial transformation policies and programmes that support the private sector to add value to African exports, compete with imports from outside Africa and expand opportunities for job creation.

“A small share of Africa’s total agricultural trade is with other African countries. Intra-African agricultural trade is estimated to be less than 20 per cent.”

According to the document, Africa imports about $80bn worth of agricultural and food products annually, thereby becoming a net importer of cereals, meat, dairy products, fats, oils and sugar.

The organisations noted that the framework would aid the development of policies and strategies to promote intra-African agricultural trade.

Areas of focus as listed in the framework included Trade policy, trade-related infrastructure, trade finance, factor market integration among others.

The FAO Regional Representative for Africa, Abebe Haile-Gabriel; the AU Commissioner, Josefa Sacko, in their comments, said, “The framework provides a timely catalyst for the transformation to more efficient, inclusive, resilient and sustainable agri-food systems, sustainable development and prosperity in Africa.”

They noted that African countries, under the AfCFTA had undertaken commitments to remove tariffs on 90 per cent of over 5,000 tariff lines and to liberalise services.