On 1st January 2021, trading within the African Continental Free Trade Area (AfCFTA) finally took effect. Its establishment marks a key milestone for Africa’s continental trade system. The size of the trade area presents promising economic development and sustainable growth that reaches all market sectors and participants.
Sani Group, a diversified private enterprise with a strategic position which focuses on offering relevant socio-economic service solutions to clients on the African continent is poised to make significant economic gains by trading within the African Continental Free Trade Area (AfCFTA).
Sani Group’s position on AFCTA is simple, an exciting game-changer. Currently, Africa accounts for just 2% of global trade and only 17% of African exports are intra-continental, compared with 59% for Asia and 68% for Europe. The potential for transformation across Africa is therefore significant. We believe this pact will create the largest free trade area in the world measured by the number of countries participating. Connecting 1.3 billion people across 55 countries with a combined gross domestic product (GDP) valued at $3.4 trillion, the pact comes at a time when much of the world is turning away from cooperation and free trade.
Beyond trade, the pact also addresses the movement of persons and labor, competition, investment, and intellectual property and we are excited by the timely intervention of AfCFTA as our strategic focus for the next 20years and beyond is to conquer Africa with our products and services. The soul of the agreement aims to reduce all trade costs and enable Africa to integrate further into global supply chains – as it eliminates 90% of tariffs, focuses on outstanding non-tariff barriers, and creates a single market with free movement of goods and services. Cutting red tape and simplifying customs procedures will bring significant income gains to corporations like the Sani Group.
As a globally recognized Real estates and Investments Company with the mission of reducing the housing deficit in Africa by 70% in the next 10years, I am convinced this agreement presents us with the opportunity to expand our operations into the continent by providing affordable eco-friendly housing units to individuals in need. With a global presence in four continents, it our firm belief that AfCFTA presents us a clean sheet to expand our products and services to more countries on the African continent.
AfCFTA’s potential advantages in helping Sani Group achieve its strategic goals include increasing economies of scale and access to cheaper raw materials and intermediate inputs; better conditions for regional value chains and integration into global value chains; catalyzing the transformation of African economies towards greater utilization of technology that the agreement present.
Sani Group is better positioned than any organization to help build economies of emerging markets of low-income countries confronting severe structural impediments to sustainable development and developed countries with advanced technologies. Main key issues facing each country has to do with job creation, social discrimination and lack of opportunities. With our products and services ranging from assets construction and management, brokerage, sales of properties, commodities trading, short-term credit financing, hospitality, global distribution of goods and services, aviation, oil and gas, agribusiness, mergers and acquisitions, security installations, and cyber security, this supports our belief that we are in a better position to provide technological solutions to these economies. The experiences of the people in these economies are a proof of concept: Businesses can gain three important advantages by serving these economies—a new source of revenue growth, greater efficiency, and access to innovation.
So far, we are building over 200,000 eco-friendly homes for families across Africa and we are making housing affordable for middle to low-income earners. This is also creating over 2Million direct and indirect employment for people across the continent.
In Ghana, we have partnerships with the 1D1F secretariat of the Presidency, Ministry of Trade and Industry to establish manufacturing plants in the Central region of Ghana. The tourism space is also not left out; with our aviation company, Falcon 21 helicopters is poised to provide helicopter services across board, where medical evacuation services, city tours and private pilot training services are provided. Also, there’s an established partnerships with the Equatorial Guinea and Liberian governments to provide affordable housing units, cyber security projects and establish farming ports respectively. We believe that these partnerships will create jobs for the unemployed and boost the economies of these countries.
To sum it up, I will urge all private enterprises to take advantage of trading within AfCFTA as it promises an increased economic development.
We say ‘Ayekoo’ to AfCFTA as it has come to stay.
Long live AfCFTA! Long live Sani Group! Long live Africa!
Writer: Lord Ibrahim Sani; CEO & Founder, Sani Group
