World
Research Foresees Many Potential Benefits of AfCFTA for Nigeria
A research from Baker McKenzie and Oxford Economics has expressed optimism that once fully implemented, the African Continental Free Trade Area (AfCFTA) will unlock significant but uneven growth opportunities on the continent.
The survey titled AfCFTA’s $3 trillion Opportunity: Weighing Existing Barriers against Potential Economic Gains said countries with good trade integration and open economies are most likely to benefit first from lower trade tariffs.
However, it pointed out that numerous obstacles across the continent mean that the tangible benefits of the agreement will likely only be realized from 2030.
“Nigeria’s first obstacle is that although the AfCFTA agreement has been signed, it is yet to be ratified, so it does not have the force of law in the country.
“Section 12 of the Constitution states that an international treaty or agreement entered into by Nigeria will not have automatic application in the country unless the treaty or agreement has been domesticated by an Act of the National Assembly.
“The AfCFTA is expected to take effect in July 2020, but no timeline has been set as yet for the implementation of the AfCFTA Agreement in Nigeria,” a partner at Templars law firm in Lagos, Ijeoma Uju, commented at the African Trade Show in Lagos, which was hosted by global law firm Baker McKenzie and Templars in Nigeria.
Mr Mattias Hedwall, Partner and Global Chair of Baker McKenzie’s International Commercial & Trade Group, noted at the event in Lagos that countries that have created more open, business-friendly environments stand to make the biggest gains from AfCFTA.
“The AfCFTA agreement will create the world’s largest free trade zone by number of countries and is expected to revolutionise trade across the continent.
“Once implemented, it will lead to sustainable socio-economic development, increased diversification, a boost in investment, trade liberalisation, the industrialisation of African economies, the establishment of new cross-border value chains and better insulation from global shocks,” he said.
Trade between countries in Africa, however is currently not high. Baker McKenzie’s research shows how trade links between Africa and the rest of the world are, at present, often stronger than trade between countries on the continent. African nations currently tend to trade more with Europe (35%) and Asia (31%) than with neighbouring markets. In contrast, less than a fifth of African countries’ exports are headed to other countries on the continent.
“These intracontinental trade shortcomings underscore the extent of lost revenue and development opportunities for African countries. They also highlight the benefits of supporting the AfCFTA and working together towards its successful implementation,” explained Hedwall.
The research compares Africa’s 20 largest economies in terms of the share of exports destined for other economies on the continent. Some economies, such as Uganda and Zimbabwe, buck the overall trend, trading more with their neighbours than other African nations do.
“Yet, their economies are small in contrast to those of Egypt, Nigeria and South Africa, which together represent more than half of the continent’s GDP.
“Egypt and Nigeria have very limited trade relationships with their African peers, because as major fuel exporters, they are more focused on exports outside the continent.
“Over three quarters of African exports to the rest of the world are heavily focused on natural resources, primarily raw materials.
“In contrast, a look at African imports from outside the continent reveals that manufacturing products, industrial machinery and transport equipment constitute over 50% of Africa’s combined needs.
“Currently, Africa’s external imports account for more than half of the total volume of imports, with the most important suppliers being Europe (35%), China (16%) and the rest of Asia including India (14%).
“By contrast imports from other parts of Africa account for only 16% of total merchandise imports,” said event panellist Virusha Subban, a Partner specialising in Customs and Trade at Baker McKenzie in Johannesburg.
“Manufacturing GDP represents on average only 10% of GDP in Africa. This means that limited production capabilities within Africa are currently being compensated for through foreign imports.
“Yet, this manufacturing deficit could be eventually satisfied within the continent and enabled by AfCFTA. Manufactured products currently exported to African countries by their peers, primarily industrial machinery and motor vehicles, represent a third of the total trade flow in Africa.
“But a significant share of these intraregional exports of manufactured goods are re-exports of imported manufactured products from the rest of the world,” she said.
“This shows that African nations do not trade more with each other because of a misalignment between what various African countries need and what is produced on the continent.
“This misalignment signals missed opportunities to reduce foreign imports from outside Africa and increase trade flows within the continent. For AfCFTA to succeed fully, more countries need to diversify their production of goods to better match the import needs of their continental neighbours,” she noted.
Ijeoma noted further, “One of the benefits of the trade agreement for Nigeria is that the elimination of tariff and non-tariff barriers will grant Nigerian businesses access to the continental market.
“A further benefit includes that Nigeria will secure a more balanced and sustainable export base by moving away from extractive commodities, such as oil and minerals, which have traditionally accounted for most of its exports.
“Manufacturers and producers will also benefit from economies of scale and access to cheaper raw materials and intermediate inputs and competition in the quality of good and service will improve. Jobs will be created, the platform for Small and Medium Enterprises (SMEs) integration into the regional and continental value chains will be expanded.
“Additionally, it will provide access to new dispute resolution mechanisms and will result in the progressive liberisation of the service sectors.”
The research underscores the importance of also addressing non-tariff barriers to intra-regional trade. Some of the most significant non-tariff barriers to AfCFTA are inadequate infrastructure, poor trade logistics, onerous regulatory requirements, volatile financial markets, regional conflict and complex and corrupt customs procedures.
These can be even more detrimental to trade expansion than tariff measures. As such, AfCFTA is expected to act as a strong impetus for African governments to address their infrastructure needs as well as to overhaul regulation relating to tariffs, bilateral trade, cross-border initiatives and capital flows. Both domestic and foreign trade will benefit from reforms to regulation, political climate and trade policies that enhance competitiveness and improve the ease of doing business.
“Nigeria will be better positioned to benefit from AfCFTA once it improves the business environment and addresses gaps in its transport and utilities infrastructure,” noted Ijeoma.
“We have to be realistic about timeframes, however, as effective solutions will take years, given limited financial capacity in many countries, high risks to private financing of infrastructure, political hurdles, administration shortfalls and lack of resources.
“So, while there are still numerous challenges to be resolved, we expect that if the barriers can be addressed, the next decade will see the growth of AfCFTA into one world’s most exciting new global trading zones,” added Hedwall.
By Kestér Kenn Klomegâh
At the end of an extensive consultation with African foreign ministers, Russian Foreign Minister, Sergey Lavrov, has emphasized that Moscow would advance its economic engagement across Africa, admittedly outlining obstacles delaying the prompt implementation of several initiatives set forth in Strategic Action Plan (2023-2026) approved in St. Petersburg during the Russia-Africa Summit.
The second Ministerial Conference, by the Russian Foreign Ministry with support from Roscongress Foundation and the Arab Republic of Egypt, marked an important milestone towards raising bilateral investment and economic cooperation.
In Cairo, the capital city of the Arab Republic of Egypt, Lavrov read out the final resolution script, in a full-packed conference hall, and voiced strong confidence that Moscow would achieve its strategic economic goals with Africa, with support from the African Union (AU) and other Regional Economic blocs in the subsequent years. Despite the complexities posed by the Russia-Ukraine crisis, combined with geopolitical conditions inside the African continent, Moscow however reiterated its position to take serious steps in finding pragmatic prospects for mutual cooperation and improve multifaceted relations with Africa, distinctively in the different sectors: in trade, economic and investment spheres, education and culture, humanitarian and other promising areas.
The main event was the plenary session co-chaired by Russian Foreign Minister Sergey Lavrov and Egyptian Minister of Foreign Affairs, Emigration, and Egyptians Abroad Bashar Abdelathi. Welcome messages from Russian President Vladimir Putin and Egyptian President Abdelhak Sisi were read.
And broadly, the meeting participants compared notes on the most pressing issues on the international and Russian-African agendas, with a focus on the full implementation of the Russia-Africa Partnership Forum Action Plan for 2023-2026, approved at the second Russia-Africa Summit in St. Petersburg in 2023.
In addition, on the sidelines of the conference, Lavrov held talks with his African counterparts, and a number of bilateral documents were signed. A thematic event was held with the participation of Russian and African relevant agencies and organizations, aimed at unlocking the potential of trilateral Russia-Egypt-Africa cooperation in trade, economic, and educational spheres.
With changing times, Africa is rapidly becoming one of the key centers of a multipolar world order. It is experiencing a second awakening. Following their long-ago political independence, African countries are increasingly insisting on respect for their sovereignty and their right to independently manage their resources and destiny. Based on these conditions, it was concluded that Moscow begins an effective and comprehensive work on preparing a new three-year Cooperation and Joint Action Plan between Russia and Africa.
Moreover, these important areas of joint practical work are already detailed in the Joint Statement, which was unanimously approved and will serve as an important guideline for future work. According to reports, the Joint Statement reflects the progress of discussions on international and regional issues, as well as matters of global significance.
Following the conference, the Joint Statement adopted reflects shared approaches to addressing challenges and a mutual commitment to strengthening multifaceted cooperation with a view to ensuring high-quality preparation for the third Russia-Africa Summit in 2026.
On December 19-20, the Second Ministerial Conference of the Russia-Africa Partnership Forum was held in Cairo, Egypt. It was held for the first time on the African continent, attended by heads and representatives of the foreign policy ministries of 52 African states and the executive bodies of eight regional integration associations.
By Adedapo Adesanya
Social media platform, TikTok’s Chinese owner ByteDance has signed binding agreements with United States and global investors to operate its business in America.
Half of the joint venture will be owned by a group of investors, including Oracle, Silver Lake and the Emirati investment firm MGX, according to a memo sent by chief executive, Mr Shou Zi Chew.
The deal, which is set to close on January 22, 2026 would end years of efforts by the US government to force ByteDance to sell its US operations over national security concerns.
It is in line with a deal unveiled in September, when US President Donald Trump delayed the enforcement of a law that would ban the app unless it was sold.
In the memo, TikTok said the deal will enable “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community”.
Under the agreement, ByteDance will retain 19.9 per cent of the business, while Oracle, Silver Lake and Abu Dhabi-based MGX will hold 15 per cent each.
Another 30.1 per cent will be held by affiliates of existing ByteDance investors, according to the memo.
The White House previously said that Oracle, which was co-founded by President Trump’s supporter Larry Ellison, will license TikTok’s recommendation algorithm as part of the deal.
The deal comes after a series of delays.
Business Post reported in April 2024 that the administration of President Joe Biden passed a law to ban the app over national security concerns, unless it was sold.
The law was set to go into effect on January 20, 2025 but was pushed back multiple times by President Trump, while his administration worked out a deal to transfer ownership.
President Trump said in September that he had spoken on the phone to China’s President Xi Jinping, who he said had given the deal the go ahead.
The platform’s future remained unclear after the leaders met face to face in October.
The app’s fate was clouded by ongoing tensions between the two nations on trade and other matters.
By Kestér Kenn Klomegâh
Despite the complexities posed by Russia-Ukraine crisis, United States has been taking conscious steps to improve commercial relations with Russia. Unsurprisingly, Russia, on the other hand, is also moving to restore and normalise its diplomacy, negotiating for direct connections of air-routes and passionate permission to return its diplomats back to Washington and New York.
In the latest developments, Kirill Dmitriev, Chief Executive Officer of the Russian Direct Investment Fund (RDIF), has been appointed as Russian President’s Special Envoy to United States. This marked an important milestone towards raising bilateral investment and economic cooperation. Russian President Vladimir Putin tasked him to exclusively promote business dialogue between the two countries, and further to negotiate for the return of U.S. business enterprises. According to authentic reports, United States businesses lost $300+ bn during this Russia-Ukraine crisis, while Russia’s estimated 1,500 diplomats were asked to return to Moscow.
Strategically in late November 2025, the American Chamber of Commerce in Russia (AmCham) has awarded Kirill Dmitriev, praised him for calculated efforts in promoting positive dialogue between the United States and Russia within the framework decreed by President Vladimir Putin. Chief Executive Officer of Russian Direct Investment Fund (RDIF) Kirill Dmitriev is the Special Representative of the Russian President for Economic Cooperation with Foreign Countries. Since his appointment, his primary focus has been on United States.
“Received an American Chamber of Commerce award ‘For leadership in fostering the US-Russia dialogue,’” Dmitriev wrote on his X page, in late November, 2025. According to Dmitriev, more than 150 US companies are currently operating in Russia, with more than 70% of them being present on the Russian market for over 25 years.
In addition, Chamber President Sergey Katyrin and American Chamber of Commerce in Russia (AmCham) President Robert Agee have also been discussing alternatives pathways to raise bilateral business cooperation. Both have held series of meetings throughout this year, indicating the the importance of sustaining relations as previously. Expectedly, the Roscongress Foundation has been offered its platforms during St. Petersburg International Economic (SPIEF) for the American Chamber of Commerce (AmCham).
On December 9, Sergey Katyrin and Robert Agee noted that, despite existing problems and non-economic obstacles, the business communities of Russia and the United States proceed from the necessity of maintaining professional dialogue. Despite the worsening geopolitical conditions, Sergey Katyrin and Robert Agee noted the importance of preserving stable channels of trade and pragmatic prospects for economic cooperation. These will further serve as a stabilizing factor and an instrument for building mutual trust at the level of business circles, industry associations, and the expert community.
The American Chamber of Commerce (AmCham) will be working in the system of the Chamber of Commerce and Industry (CCI) in the Russian Federation, which currently comprises 57,000 legal entities, 130 regional chambers and a combined network of representative offices covering more than 350 points of presence.
According to reports obtained by this article author from the AmCham, promising sectors for Russian-American economic cooperation include healthcare and the medical industry, civil aviation, communications/telecom, natural resource extraction, and energy/energy equipment. The United States and Russia have, more or less, agreed to continue coordinating their work to facilitate the formation of a more favorable environment for Russian and American businesses, reduce risks, and strengthen business ties. Following the American-Russian Dialogue, a joint statement and working documents were adopted.
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