Africa Needs 100 More Ships, Enhanced Ports, Unified Regulations to Fully Leverage AfCFTA Opportunities— Abuja MoU

Captain Sunday Umoren, Secretary General of the Abuja MoU has emphasized the urgent need for enhanced maritime infrastructure and regulatory alignment to ensure the success of the African Continental Free Trade Area (AfCFTA).

Speaking at the National Association of Master Mariners (NAMM) 3rd Quarterly Paper Presentation in Lagos on Saturday, Umoren emphasized that without significant upgrades, Africa risks missing out on the full economic potential of AfCFTA, as current facilities are inadequate to handle the anticipated increase in intra-African freight volumes.

Addressing the assembled maritime stakeholders, Umoren highlighted key challenges, including inadequate port facilities, low ship ownership, and limited digitalization, which are hindering Africa’s ability to fully capitalize on AfCFTA’s potential.

Umoren pointed to UNCTAD’s Review of Maritime Transport 2023, which projects that AfCFTA implementation could double Africa’s maritime freight demand from the current 58 million tons to 131.5 million tons.

However, he cautioned that Africa’s existing infrastructure is insufficient to handle such an increase, risking missed opportunities for intra-African trade and economic growth.

“With AfCFTA, Africa has a unique chance to boost its blue economy, but the infrastructure to support this growth is lacking,” said Umoren.

He stressed the need for a comprehensive investment in port facilities, modern shipping fleets, and digitalization to streamline customs and logistics processes.

Speaking further, Umoren advocated for initiatives such as the Near Coastal Voyage (NCV) Code, which aims to limit foreign vessel reliance in regional trade and promote indigenous participation in the maritime sector.

This multilateral agreement among African nations would standardize maritime practices, enhance port operations, and limit dependency on foreign vessels in regional trade.

He noted that the NCV Code would also create more employment opportunities within the region’s maritime sector and support local industries.

Captain Umoren called on African governments to create policies fostering indigenous ship ownership and to implement environmentally sustainable practices within the maritime industry.

He emphasized that collaboration between government and private sector stakeholders would be essential to achieving AfCFTA’s goals, urging policymakers to make maritime development a priority in their national agendas.

The Abuja Sec Gen however called for African nations to embrace unified regulations and infrastructure enhancements, as these elements are critical to establishing Africa as a strong global trade partner through AfCFTA.

Also addressing the issue, Captain Tajudeen Alao, President of NAMM, underscored the significant challenges confronting the Nigerian shipping industry, stressing the urgent need for improved market access, ship availability, and manpower to unlock the sector’s full potential.

In a recent discussion, Captain Alao noted the limited control exerted by the Federal Government and Nigerian shipping authorities, resulting in fragmented coordination and a lack of sustainable trade practices.

He pointed out that while the market exists, there is an immediate need for more ships to meet demand.

“We have the market, but the ships are not there,” Captain Alao remarked, citing data from global institutions like the World Bank and the IMF that highlight the gaps in ship ownership and financing.

Another major concern raised by Captain Alao was the restricted capacity of Nigeria’s coastal trade (NCV). He explained that under existing maritime conventions, ships are limited to operating within 30 miles of the coastline, with newer regulations further reducing this to just 15 miles from a port of refuge.

These limitations, he argued, hinder the growth of inter-regional trade and create challenges for vessels operating along Nigeria’s coastline, particularly on longer routes like from Lagos to Port Harcourt.

*L-R: The President of the Nigerian Association of Master Mariners NAMM, Capt. Tajudeen Alao warmly welcomes Captain Sunday Umoren, Secretary General of the Abuja MoU, before his paper presentation on Saturday.

Captain Alao also highlighted the broader prospects for Nigerian shipping within the African Continental Free Trade Area (AfCFTA), describing it as a major opportunity for the continent with the potential to foster greater regional integration in maritime activities.

 However, for Nigeria to fully benefit from this opportunity, he stressed the need for updated legal frameworks and improved diplomatic cooperation to address the jurisdictional complexities in the maritime sector.

Additionally, Captain Alao touched on the ongoing issue of shipping codes and certifications, mentioning that ships from countries such as Ghana, Kenya, and Uganda have historically operated alongside Nigerian ships due to shared maritime certification from the UK.

However, as the global maritime industry evolves, he cautioned that unless Nigeria updates its policies to align with current international standards, it risks falling behind in the continental shipping space.

Despite these challenges, Captain Alao expressed optimism about the maritime sector’s potential to generate wealth. “There is no quick money in shipping, but through the multiplier effect, shipping creates employment and wealth,” he said, stressing that the industry can drive long-term economic growth and uplift various sectors of the economy.