The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, has identified the importance of the private sector as key driver of economies within the continent and beyond, saying “there can’t be African Continental Free Trade Area without the full participation of the private sector.”

Speaking at the occasion of the ‘Lighting of the Africa Trade Torch’ held virtually on Thursday, January 20, to celebrate the commencement of trading activities under the AfCFTA, Adebayo said the private sector has the sole power to operationalize the agreement.

CEOAFRICA gathered that the Lighting of the Africa Trade Torch was organized by the Pan-African Manufacturers Association (PAMA).

PAMA urge cooperation between African manufacturers such that there can be market transformation in order to grow Small and Medium Enterprise (SMEs) and subsequently create value chains to achieve Africa’s industrialization agenda.

The Minister described the conceptualization of the Lighting of the Africa Trade Torch as “most appropriate.”

Adebayo, however, said the effects of the AfCFTA on economic and social transformation depend on the degree to which the private sector can seize the opportunities the agreement provides.

He noted that one of the opportunities is the chance to make African economies more competitive and enable development and elevation of regional value chains with focus on SMEs.

According to reports, Adebayo said, for instance, that SMEs in Nigeria contribute about 48 per cent of national Gross Domestic Product (GDP), which has been consistent in the last five years.

“They also account for about 96 per cent of businesses and 84 per cent of employment opportunities within the country,” he added.

The Minister also said another survey conducted by the National Bureau of Statistics (NBS) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) show that the Nigerian SME sector is strategically positioned to absorb up to 80 per cent of jobs.