Africa Maritime Sector: a secure base for Africa Continental Free Trade Area to deliver its core value
West Africa maritime sector is a bullish industry unknown to many people; global projection on the new emerging market with population strength will be in Africa after China. Studies have shown that transportation is a requirement for every nation, regardless of its industrial capacity, population size, or technological development. The majority of the Africa transportation systems, right from inception, was perceived to be poorly designed and are unable to scale up to meet greater demands, a design flaw that causes traffic congestion on roads, overstressed railways, faltering airfields, and mass-transport blind spots as seen in most of West Africa countries.
Overall effect; it appeared to be market impediments that operate to limit the extent to which Africa entrepreneurs undertake businesses in the maritime sector and their prospects for success; also, the industry's complexity/ capital intensive in nature but still presents endless business opportunities that require solutions.
Supporting the above narrative, maritime transport will continue to provide continent solution services to connect people to jobs, homes, communities, and essential services vital to the supply value chain. However, these opportunities have not been leveraged. Inland waterways, the coastal waterways, and the West African trans-Africa coastal trade route are left unattended; these opportunities are untapped.
The recently signed African Continental Free Trade Area (AfCFTA), signed by 54 of the 55 countries in Africa, began on January 1, 2021. It has been projected that the collaboration will deliver an estimated USD$3 trillion market and could help to realize more than USD$84 billion in untapped intra-African exports, according to a new report by the African Export-Import Bank (Afreximbank).
However, many maritime security experts and business investor/maritime experts might defer on this view slightly on the sector been bullish due to the concern about the insecurity in the region: the piracy issues in the Africa waters; also concern about investor's fears about ESG matrix which is the critical driver for investors into any sector investment.
Most West African countries' maritime and security authorities are leading the sea battle to address piracy issues in Africa waters; It is a known problem; it has a solution, and this problem has also created business value for maritime security operators in the area, which is a significant multi-million-dollar venture. Regardless of the security red flag views, the Africa maritime industry remains bullish and as the secured base for AFCFTA to deliver its value to the continent
- Capt. Ola Olubowale: AfIN, MRIN
Maritime Business Professional.
Member: Australia African Chamber of Commence