Cairo, Egypt, 16 November 2023 (ECA) – The Economic Commission for Africa (ECA), African Export Import Bank (Afreximbank), African Union Commission (AUC), and the Economic Community of West African States (ECOWAS) commission have shed light on the often-overlooked world of Informal Cross-Border Trade (ICBT) in Africa.

The lack of reliable data on ICBT has long hindered the development of targeted policies and interventions. To address this, a pilot project launched in 2019 along the Abidjan-Lagos corridor evolved into Phase II in 2022. This phase not only monitored official border crossings but also loading/offloading sites, providing a comprehensive view of ICBT dynamics.

Presented in Cairo during the 3rd Intra-African Trade Fair (IATF 2023) by Stephen Karingi, ECA’s Director of Regional Integration and Trade, the Phase II findings outlined in a report on ICBT in the ECOWAS region include gender-disaggregated insights. These shed light on the value and nature of products traded, cross-border facilitation challenges, and recommendations.

Key findings showed a four-month total value of ICBT at USD 22.8 million. Gender-disaggregated data emphasized women’s 74% share in transactions, but men dominated in value, trading nearly four times more and dealing in a broader range of goods.

Recommendations include transforming trade corridors into smart corridors, establishing information centers, introducing a simplified trade regime, deploying ECOWAS National Biometric Identity Cards, establishing gender desks at border crossings, and mainstreaming gender into border officials’ training.

These findings informed the development of the Continental Methodology for ICBT data collection in Africa by the AUC, Afreximbank, and ECA in collaboration with a Task Force comprising experts from various institutions.

Yusuf Daya, Afreximbank’s Director of AU/AfCFTA Relations and Trade Policy, highlighted the importance of ICBT as a “dominant economic activity across Africa,” noting that it accounts for “about USD 40 billion – according to some anecdotal evidence,” yet is often ignored in official statistics due to its informality.

Mr. Daya lauded ongoing collaborative efforts to develop the “AU-ECA-Afreximbank Continental ICBT Data Collection Framework and Methodology,” which will enhance understanding of the value of ICBT and “ensure that informal traders are appropriately supported and capacitated.”

In the same vein, Massandjé Toure-Litse, ECOWAS Commissioner for Economic Affairs and Agriculture, expressed urgency in tackling the challenging issue of informal cross-border trade, deploring the fact that “official data indicate insignificant trade within West Africa, despite ECOWAS efforts.”

Albert Muchanga, AUC Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, commended ECA for the study’s insights and emphasized the urgency for Africa to mainstream informal cross-border trade into formal intra-Africa trade. Outlining the next steps, Mr. Muchanga said the findings and recommendations will be taken to AUC’s specialized committees for review and adoption for continent-wide implementation.

This initiative underscores a collective commitment to addressing challenges and opportunities, marking a pivotal moment in reshaping Africa’s economic landscape. It also signifies a significant step towards rethinking Africa’s cross-border trade dynamics, ensuring that the invaluable contributions of informal trade are recognized, supported, and integrated into the broader economic landscape.

In Cairo, ECA advances solutions to intra-Africa trade challenges

Cairo, Egypt, November 16, 2023 (ECA) — Participants at the 3rd Intra-African Trade Fair (IATF), held in Cairo, Egypt, from 9 to 15 November, had the opportunity to learn about the Economic Commission for Africa’s (ECA’s) impactful contribution to regional integration and trade initiatives in Africa.

Through its Regional Integration and Trade Division (RITD), ECA showcased some of its new and existing strides toward reshaping Africa’s economic landscape.

“At the heart of our work is the drive to empower Small and Medium Enterprises (SMEs) within the African Continental Free Trade Area (AfCFTA). IATF is about demonstrating the power of transformation under the AfCFTA,” said RITD director, Stephen Karingi, reflecting on ECA’s participation at IATF 2023.

Transformative findings on Informal Cross-Border Trade (ICBT)

At IATF 2023, ECA, in collaboration with Afreximbank, the African Union Commission, and ECOWAS Commission, unveiled groundbreaking findings on ICBT as contained in a joint report on Informal Cross-Border Trade (ICBT) in the ECOWAS region. The report outlines vital gender-disaggregated insights, shedding light on the value and nature of products traded, cross-border facilitation challenges, and recommendations.

The report touches on the significance of ICBT, with a total recorded value of USD 22.8 million during a 4-month data collection period. Gender disparities were evident, with women constituting 74% of ICBT transactions. However, transactions by the 26% men in the sector are four times higher in value than those of women.

ECA’s Karingi stressed the importance of recognizing, documenting, and integrating informal trade into subregional and continental policy frameworks, stating “intra-Africa trade is often underestimated due to inadequate data on ICBT.”

The imperative for comprehensive data to understand trade, develop targeted policies, and monitor progress accurately was highlighted during the session.

Representatives of partner institutions, including AUC Commissioner Albert Muchanga , ECOWAS Commissioner Massandjé Toure-Litse, and Afreximbank’s Yusuf Daya, applauded ECA for the report’s insights and rallied their voices in support of the development of a Continental Methodology for ICBT data collection in Africa.

Empowering SMEs for AfCFTA integration

ECA, in addition to sponsoring 11 young entrepreneurs from across the continent with exhibition space throughout IATF 2023, co-organized a session with UNDP, highlighting efforts to integrate SMEs into regional and continental value chains under the AfCFTA. Titled “Reaping the Benefits of the AfCFTA through SME Integration into Regional/Continental Value Chains,” the session provided insights into enhancing export capacities and entrepreneurial prowess of women and youth-led enterprises.

Sara Achieng, one of the ECA-sponsored entrepreneurs from Uganda, expressed her delight, stating, “I am grateful for this opportunity to have found a business partner who will distribute my products to Egypt and Senegal, where they have a solid base. This is what I’ve been praying for.”

Albert Muchanga, AUC Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, was among the numerous visitors at the ECA exhibition stand. He actively engaged with and encouraged the 11 ECA-sponsored SMEs.

Transforming Africa’s Industrialization landscape

During the Organization for Economic Cooperation and Development’s (OECD’s) side event on “Production Transformation: Accelerating Africa’s Industrialization in a Changing World,” Mr. Karingi underscored the role of regional integration in driving Africa’s industrialization. AfCFTA’s significance in fostering green industrialization and digital transformation across the continent was highlighted, with Mr Karingi calling for fair access to international financial markets to support Africa’s sustainable development.

Addressing financing challenges for industrial transformation

Mr. Karingi addressed the critical issue of financing industrial transformation, advocating for reforms in international financial and tax architectures. He emphasized the importance of de-risking investments in Africa, urging clarity on opportunities and addressing investment risks. ECA’s ongoing efforts in this area include analytical tools and capacity-building interventions.

Role of policy and trade reviews

Recognizing the value of Production Transformation Policy Review (PTPR) led by the OECD Development Centre with ECA as a partner institution, Mr. Karingi emphasized their essential role in de-risking investments. He highlighted the need for active private sector engagement in the PTPR process, stressing the necessity of strong ownership by beneficiary countries for success.

In essence, ECA’s dynamic involvement in the 2023 Intra-African Trade Fair showcased a steadfast commitment to addressing critical trade challenges. From groundbreaking ICBT insights to empowering SMEs and outlining strategies for industrialization, ECA’s initiatives aim to catalyze positive transformations across Africa’s economic landscape.

Issued by:

Communications Section

Economic Commission for Africa

PO Box 3001

Addis Ababa

Ethiopia

Tel: +251 11 551 5826

E-mail: eca-info@un.org

MAGODO RESIDENTS SEEK SANWO-OLU’S INTERVENTION OVER THREATS BY LAND GRABBERS THROUGH WETLAND 

• Urges Governor to caution LASG officials conniving with land speculators, developers

Residents of the Magodo GRA Phase II Estate in Lagos on Thursday, sent a Save Our Souls and Properties message to Governor Babajide Sanwo-Olu, following the invasion of the estate and the threat to their safety and security due to incessant forceful access by unauthorised persons to the wetlands around the estate.

The residents disclosed that land speculators and developers aided by top officials of Lagos State Physical Planning and Urban Development have decided on building the wetland and they are bent on making an incursion therein through Magodo Phase II, noting that the plan is a direct threat to the environment, safety and security of a community with over 16,000 residents, who have lived peacefully and secured in the estate for more than three decades.

The residents, therefore, called for Governor Sanwo-Olu’s urgent intervention “to forestall the breakdown of law and order in the estate and the state, which some people aided by the Commissioner for Physical Planning, Dr. Oluyinka Olumide; and the Chairperson of Ikosi Isheri Local Government, Mrs Samiat Abolanle Bada; who are top Lagos State Government functionaries, appear set to ignite for reasons best known to them.”

The Magodo GRA Phase II Estate Residents Association made the appeal to Governor Sanwo-Olu on Thursday during a press conference addressed by its Chairman, Engr. Sheriff Daramola, in the company of the Board of Trustees, Central Consultative Council, Central Management Council, executive members and residents of the estate.

Daramola implored the Lagos State Government to desist from any plan to build link roads to the wetland through Magodo Phase II Estate but instead construct a road from the Otedola underpass which is currently free of development and unencumbered.

He disclosed that in the last six months, residents had experienced serial vandalisation of vehicles, theft cases and criminal activities as a result of exposure to the wetland by land speculators and developers who were bent on making an incursion therein through the Estate.

Daramola, who commended Lagos State Commissioner for Environment, Mr. Tokunbo Wahab, for his recent visit to Magodo Phase II where he emphasised the significance of the wetland and its implications for development, wondered why the Commissioner for Physical Planning, Dr. Oluyinka Olumide, wants land speculators and developers to have access to the wetland through Magodo Estate.

He said: “We commend Mr. Governor, Babajide Sanwo-Olu, for his unwavering support and commitment to his promises not to allow access through the wetlands from Magodo Phase II in our tripartite meeting in the past and in his support to ensure continuous peace in our Magodo Phase II community and Lagos State as a whole.

“Mr. Governor, sir, we have those that are warming up to distort and destroy the peace and harmony we enjoy in Magodo Phase II; to add to the security concerns in the estate and Lagos State by forcefully planning to access the wetland through Magodo Phase II despite alternative routes listed outside Magodo Phase II. Accessing the wetland through Magodo Phase II shall create further damage and shall be colossal.”

Speaking during the press conference, former Lagos State Commissioner for TPL Francisco Abosede, who is a resident in the Magodo GRA Phase II Estate, said the wetland amongst other ecological benefits served as a natural storm collector and flood control container for all stormwater from Agidingbi, Ikeja, Ogba, Alausa, as it had also shielded Magodo from soil erosion, flooding and flood-related diseases and disasters over the decades.

He said forcing access to the wetland through Magodo Phase II in the proposed urban development scheme will have consequences for the existence of Magodo Phase II and its residents, adding that using Magodo GRA Phase II to access the wetland is to destroy the fragile infrastructure the residents have collectively managed and maintained and with supports from the Lagos State Government.

Also speaking, a journalist and resident in the Estate, Mr. Mojeed Jamiu, urged Governor Sanwo-Olu to caution the Commissioner of Physical Planning and Urban Development, Dr. Oluyinka Olumide and other government officials, from allowing land speculators and developers to have access to the wetland through the Estate.

“Why we are calling for Mr. Governor’s intervention is the fact that we have a Commissioner of Physical Planning, Dr. Oluyinka Olumide, who is supporting the Omo Onile (land grabbers); who backed them to pull down our structure and two weeks later, a Commissioner for Environment, Mr. Tokunbo Wahab came here and said no to any building on wetland. So, we have conflicting signals from two commissioners of the same government. So, we want Mr. Governor, who is also a Surveyor and understands the terrain to intervene.

“The Governor should intervene and call his Commissioner to order because we can see that there are selfish interests involved. The Commissioner for Physical Planning is backing Omo Onile against an estate of over 16,000 people. We want Governor Babajide Sanwo-Olu, who we know is upright and true to his word, to come to our rescue and give a clear directive on who we are to obey between the Commissioner for Environment and Commissioner for Physical Planning.”

THE FUTURE OF HOUSING IN NIGERIA AND 5O YEARS OF FHA: A CALL TO ACTION FOR POLITICAL LEADERS AND POLICY MAKERS FOR DECENT AND AFFORDABLE HOUSING BEING THE TEXT OF THE KEYNOTE ADDRESS AS SPECIAL GUEST AT THE 50^TH ANNIVERSARY OF FEDERAL HOUSING AUTHORITY ON 23^RD NOVEMBER 2023

Ladies and Gentlemen:

I am sure many of us are familiar with the expression: “Time will tell.”

I am also fairly certain that many of us have used that expression at one time or the other, but I wonder how many of us have ever paused to fully reflect on the full meaning and vast ramifications of that expression.

Truly time does tell, and that is why we gather today to commemorate 50 years of the creation of the Federal Housing Authority (FHA), whose story, challenges and successes are embedded in the womb of time.

Time now tells us that the FHA was created by law which came into effect on 1^stOctober 1973 with the functions of the Authority being:

Section 3

(a)                 The preparation and submission from time to time to the Government of proposal for national Housing programmes;

(b)                 The making of recommendations to the Government on such aspects of urban and regional planning, transportation, communications, electric power, sewage and water supply development as may be relevant to the successful execution of housing programmes approved by the Government; and

(c)                  The execution of such housing programmes as may be approved by the Government.

Time does tell us that this was in 1973, when Nigeria was not a democracy and was therefore governed by the military who combined executive and law-making functions.

Looking back over 50 years from 1973, time has a lot to tell us about FHA.

Time tells us about FESTAC town and Gwarimpa, the two largest housing projects successfully executed by FHA, that earned her the reputation of a credible and reliable housing provider and lately, time tells us about Zuba Housing Estate recently delivered in May 2023.

Time tells us about other estates that have been developed by the FHA across various parts of Nigeria and reminds us that in the right hands, with the right support, leadership and resources FHA has developed a brand worthy of propagation and an ability to deliver housing if the right things are done.

Time tells us that FESTAC town and Gwarimpa are in urgent need of restoration, rehabilitation and sustained maintenance.

Time now tells us that FHA’s statutory functions must expand beyond planning and building, and extend to maintenance in order to preserve the value of the brand.

With some of the conversions and distortions of plans in some FHA estates time tells us that FHA must evolve new methods of enforcing compliance and must constantly review plans in her estates to adapt them to growing needs and respond to the dynamism of town planning.

By doing so, FHA can take control and drive user changes and planning modifications instead of reacting to them.

Time tells us that 5 (FIVE) years after the creation of the FHA, the Land Use Act was enacted which vested controls of land in state governments and that since 1999 till date, democracy has taken very firm root in Nigeria.

Time tells us that FHA has worked with the military and with civilian governments and that FHA needs to strengthen its civil interaction abilities to optimise its purpose in a democratic and participatory government, including its interactions with state governments to facilitate access to land, a resource that is critical to FHA’s ability to deliver its core mandate.

Time has certainly told us a lot about FHA from what I have shared so far, but this is just a very brief portion of what remains buried in the womb of time about FHA.

However, it seems that this anniversary should be an opportunity to look forward and to ask what the next 50 years holds in stock for FHA? I do not know the answer, but I am certain that time will tell; And in order for time to tell positive stories about FHA in 50 years from now and beyond, I venture to offer some suggestions.

My suggestions will broach areas like financing, housing types, affordability, people participation, and maintenance to mention a few.

Let me begin on the financing front by commending the supervising ministry of FHA, the Ministry of Housing and Urban Development, the Honourable Minister and the Honourable Minister of State for the theme that that they have chosen for the recent 12th meeting of National Council on Housing and Urban development namely: “Harnessing local international credit schemes as a panacea for housing infrastructure developments under the Renewed Hope Agenda.”

I commend them because in my view the choice of the theme demonstrates a consciousness about one of the problems in housing delivery which is how to pay for the construction in a sustainable way.

Perhaps, unknown to members of the public, the resources available for housing at the federal level are insignificant and not proportionate to the expectation.

I therefore not only hope, but I also expect that there will be deliberate follow-ups on the theme of the National Council, with the objective of ensuring that commensurate and substantial funding is available for housing delivery generally and to FHA and allied agencies particularly.

As far as FHA is concerned, I will repeat publicly my advice to them when I was the Minister for Housing supervising the authority; namely that they are owners of very large estates, and vast tracts of land which are very valuable assets upon which financing can be raised.

Let me be clear, that I am not suggesting the disposal of these assets for cash.

On the contrary, I hold the view that if I these assets are properly valued, titled and managed they can unlock vast financial resources for FHA to build more estates, sell or mortgage them, recoup the outlay, pay off any debts, and make profit.

In this way, FHA can become a proper business run on very strict corporate governance principles that conform with global best practice and this will be consistent with previous attempts to commercialise or privatise the authority.

It is a long and I daresay painful process which must start from within FHA and which will require some external professional support, but which I firmly believe can be done.

If private organisations are buying land at open market value, building on them and scaling for profit, nothing stops FHA which already owns vast acreages of land from competing successfully in this space except FHA herself.

Of course, there is no doubt the FHA can build. She has demonstrated that ability beyond debate in some of the schemes like FESTAC, Gwarimpa, Zuba, that I have mentioned, and in places like Guzape and others such as Bwari still under development.

The question is whether FHA can successfully sell and this leads to questions of corporate governance and the role of public officers in the sale and acquisition of FHA houses on one hand, and the type of houses that FHA chooses to build on the other hand.

Speaking on the latter issue of type of housing in relation to whether FHA can successfully sell, my suggestion is that FHA should recognise that the market demand is probably dominated by those in the age bracket of around 25 to 35 years and it would be helpful for FHA to conduct a highly professional survey of what their needs are before designing and building.

This is very instructive with the abundant evidence of empty and unoccupied houses, partly accounted for by the fact that they are no longer fit for purpose and market based on design.

The other survey that I would advocate is the payment mode that this category of potential buyers will opt for and to urge FHA to factor in digital platforms for advertising, sale, and payment because this is the language of this class of buyers. If FHA expects these class of buyers to come to their offices to come and collect forms to buy houses and go through some of the ancient red tape that time has tied away for FHA, then there is a risk to success.

Before I leave housing type, let me suggest to FHA, another possible source of revenue by investments in Airbnb housing types for sale and rent to their potential largest market group who are very mobile and in need of these type of housing.

As far as affordability issue is concerned my views remain unchanged and unchanging because not much has changed.

Housing is a product that must respond to the realities of the economy such as demand and supply, inflation, interest rates and exchange rates.

Therefore, while there is scope to reduce cost of housing delivery by research, materials innovation, affordability is a two-way street not a one-way one.

In the first part it is influenced by how much the house is built for, also how it is paid for.

The cheapest house can be unaffordable to the income group it is built for if it has to be paid for at once while the most expensive house can become affordable if payment is spread over a reasonable time.

The Lagos Homs housing programme which I superintended as Governor, delivering 200 units of housing monthly for three years with a 10-year single digit mortgage payment, had no affordability issues for the income bracket it was built for.

More recent efforts with the National Housing Programme across 35 states of the country when I served as Minister of Housing, with mortgage funding by the Federal Mortgage Bank of Nigeria are examples that I believe that FHA can review and improve upon.

Before I leave the issue of affordability, permit me to once again talk about rent.

The sad but painful truth is that not everybody will be able to afford to buy a house; but I strongly believe that rental housing for all is possible, not only based on how we build but also how people pay rent.

Homelessness is the most undignifying experience for a human being and must be confronted with the necessary resolve by political leaders and policymakers.

Therefore, our housing policy must focus on rental as it focuses on ownership. Consequently, rent to own initiatives that started in the last administration must not be allowed to die.

Instead, there is scope in my view for improvement in expanding rent to own schemes at Federal and State levels, and also increasing advocacy for state legislators to make laws that make the payment of rent convenient and convergent with wages and salaries.

One of the pillars of President Tinubu’s economic policy is the creation of credit to finance basic needs. He started with the student loan policy on education, and it is my view that this ministry can deepen the expectation of Renewed Hope by leading the advocacy with states to end the era of 2-3 years rent payment in advance. It is the antithesis of affordability.

My final intervention will be on maintenance. Nothing built by man lasts forever, but restoration, repairs and maintenance certainly help to preserve, not only design life of buildings, but their utility, value and liveability.

An Executive Order Number 11 for National Infrastructure maintenance was signed on Wednesday 6^th April 2022 in the last administration.

FHA can leverage on it to preserve the value of all her assets and to create sustainable jobs for artisans and professionals who run small businesses.

Going forward, all FHA estates must incorporate maintenance contracts, paid for by occupiers to cover painting, repairs, restoration, waste management, water supply and power supply to mention a few.

Ladies and gentlemen, as you can all perceive there is a lot for me to unpack, this is a matter about which I am passionate, but if I continue…time will tell.

Let me therefore conclude by wishing the FHA hearty felicitations on this Golden Jubilee and hoping that in the next 50 years, time will tell a good story about FHA and its outstanding successes on the provision of decent and affordable housing.

Thank you for listening.

Babatunde Raji Fashola, SAN

Thursday 23^rd November 2023