AfCFTA Will Thrive by Facilitating Shippers Transportation, Promoting Collaboration- Chaytor
While considering the opportunities under African Continental Free Trade Area (AfCFTA), the Head of Trade in Services, AfCFTA, Beatrice Chaytor, affirmed that by addressing barriers to the movement of shippers and fostering collaboration among state parties, AFCFTA will be able to facilitate smoother, more efficient maritime operations, which will boost economic growth across the continent.
During the African Shipowners Association (ASA) webinar designed to provide insights on African shipping titled “Consolidated Approach to Shipping Under AfCFTA ” on November 22nd, 2024, she stated that efficient logistics and supply chain services will ensure that products are transported and stored properly to minimize loss and ensure timely delivery to markets.
“The AfCFTA presents a significant opportunity for the maritime sector by promoting greater intra-african trade through improved policies ,streamlined regulations and enhanced transport connectivity .
“Effective logistics system is the backbone of efficient transportation of goods.”
Speaking on the effect of AfCFTA on transportation and logistics ,Jonathan Aremu, Consultant , ECOWAS Common Investment Market, said the core components of transportation are the modes, infrastructure, networks and flows.
According to him ,the mobility cost of people and freight are the important factors in the implementation of AfCFTA.
He said the development of logistics and setting of Continental supply chains would substantially impact on the implementation of AfCFTA.
Aremu confirmed that countries with higher transport cost would be less likely to attract foreign investment in export activities ,higher cost on imports and lower long-run rate of economic growth .
Therefore, he emphasised that in trading, as in any other economic activities, people must exchange time for space to carry them out ,through engaging modes of transportation systems and the essential logistics of it.
“Transportation is a key factor for competitiveness of any country or a region, since it provides access to markets, labor and resources.
“The difference between transportation and logistics is that while transportation deals with mobility of passengers and freight, logistics focuses on organising the different components of the mobility such as the booking of transportation services , packaging and storage of goods.
“The higher the cost of transportation, the more the payment for imported intermediate goods and less likely will such an economy be able to compete in export markets.”he said.
