Latest news with #economicIntegration
Zawya
5 days ago
- Business
- Zawya
Nigeria: Minister urges stronger private sector role in boosting intra-African trade
Nigeria's Minister of Foreign Affairs, Ambassador Yusuf M. Tuggar, has made a clarion call for the private sector to play a central role in unlocking Africa's economic potential through intra-African trade. Speaking at the Private Sector Roundtable preceding the West Africa Economic Summit (WAES), held at the Metropolitan Club, Victoria Island, Lagos, Tuggar highlighted the urgent need for deeper economic integration across the continent. Addressing an audience of business leaders, diplomats, and policymakers, Tuggar emphasised that Africa stands at a critical juncture — one where business is no longer a peripheral concern but a strategic pillar of regional policy and diplomacy. 'This is the period in which the voice of business is not merely recognised at the margins, but is systematically institutionalised within the core processes of policy formulation and regional economic diplomacy. 'It reflects a deeper entanglement of corporate interests and statecraft, wherein the private sector emerges not as a peripheral stakeholder but as a central architect of economic governance frameworks,' Tuggar stated. While outlining the opportunities, the Minister also presented a stark picture of the current reality. Citing recent data, he revealed that intra-African trade accounts for only 15 percent of total trade on the continent, with the figure dropping to between 12 percent and 13 percent in West Africa. In contrast, intra-regional trade in Asia hovers around 60 percent, and Europe nears 70 percent, highlighting a significant gap. Tuggar pointed out that the constraints to West Africa's economic integration are not a matter of potential, but rather of practical shortcomings — infrastructure gaps, weak coordination, and a lack of sustained political commitment. 'The challenge lies not in envisioning a prosperous, interconnected region, but in establishing the institutional mechanisms, logistical frameworks, and governance consensus required to actualise that vision,' he said. Nevertheless, he acknowledged progress in recent years, citing efforts such as the ECOWAS Trade Liberalisation Scheme, the Abidjan-Lagos and Abidjan-Dakar transport corridors, SIGMAT, the West African Power Pool, and the planned African-Atlantic Gas Pipeline. 'These are not just abstract ideas — they are West-African-led initiatives that will prove advantageous to businesses across the sub-region in the near future,' he affirmed. Tuggar also expressed concern over rising global protectionism and the reordering of global tariff systems, noting that such developments make regional alignment even more essential. 'In a world witnessing protectionist tendencies from global market leaders, it is only right that neighbours and regional blocs align for the common good of their people. 'The West African response must be clear and deliberate, not reactionary and disjointed. That is why WAES is a timely and strategic platform,' he said. WAES, scheduled for June 20–21, 2025, in Abuja, is a flagship initiative championed by Nigeria's President and supported by other West African leaders. According to Tuggar, the Summit aims to shift the region from dependency to productivity, and from fragmented markets to integrated value chains. 'The idea is to use our size to generate efficient productivity in order to outcompete others in the global market,' he explained. 'A broader West African market will drive down costs and enable our businesses to scale up and compete internationally.' WAES is expected to bring together Heads of State, Ministers, investors, and key stakeholders from across West Africa, along with private sector leaders. The Minister underscored the importance of this inclusion, stating that business voices must directly influence policy decisions. 'When we succeed in integration, when we improve on policy predictability, secure property rights, and the effectiveness of contracts — investors will come,' Tuggar said. 'This is the largest market on the continent, and it must be leveraged.' He emphasized the need for candid conversations between the private sector and policymakers during WAES. 'We're bringing along the decision makers to hear directly from you — to understand the challenges, identify the low-hanging fruits, and even resolve some issues on the spot,' he said. Tuggar urged participants not to underestimate the impact they could have. 'Sometimes it just takes one phone call. We are serious about removing barriers to business so that commerce can thrive,' he said. 'It's not just about size, it's about scale — the kind of scale West Africa provides.' He commended Nigerian companies already operating across the sub-region — in banking, cement, fertilizer, fintech, and startups — as evidence that cross-border business is both viable and beneficial. He concluded by reinforcing the collective nature of the challenge: 'Let's not forget — it's not just Nigerian policymakers involved. Policymakers from other countries are also on board. Heads of State will be there. So let's work together to resolve the problems and build an integrated, competitive West African economy.' As anticipation builds ahead of the June 20–21 Summit in Abuja, Tuggar's message was clear: the future of Africa's economic strength lies in regional collaboration, and the private sector must lead the charge. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
Gulf economic "integration" step towards growth - Kuwait Min.
KUWAIT -- Economic "integration" within Gulf Arab states is a major step forward towards sustainable growth, Kuwait's finance minister said on Sunday, citing the measure as a cornerstone of development plans. At a time of "grave" economic challenges, coupled with geopolitical tensions, it would behoove Gulf Cooperation Council (GCC) states to ratchet up their efforts in a bid to keep these difficulties at bay, Nora Al-Fassam told a gathering of the six-member bloc's financial and economic cooperation committee in Kuwait. As non-oil revenue continues to be on an upward trajectory, Al-Fassam, who doubles as state minister for economic and investment affairs, said that Gross Domestic Product in GCC member states was worth USD 2.2 trillion in 2024, while sectors ranging from tourism to energy continue to see palpable growth, she underlined. In terms of GDP value, the minister prognosticated that the economies of Gulf Arab states will be among the top 10 in the world in the coming years, while the primary objective for the committee gathering is to look into plans to bolster cooperation in the face of existential challenges, which was necessary to keep development steady, said the minister. In attendance amid the talks, the Riyadh-based bloc's secretary general Jasem Al-Bedaiwi said that the slew of accomplishments member states have amassed helped transform the region into a financial and economic hub, while steps are being taken towards the economic "integration" of GCC countries, he said. He went on to say that forging a solid rapport with international bodies and organizations was a "priority" moving forward, emphasizing that recent indicators point to the growing economic clout of Gulf Arab countries, whose stock markets rank seventh in the world in terms of market value, the bloc's chief added. On other accomplishments, he said the region's non-oil economic activity comprised 75.9 percent of total GDP last year, at a time where Gulf Arab states continue to push forward "economic diversification" plans, while the proper infrastructure is in place to accelerate a digital drive, said the official. All KUNA right are reserved © 2022. Provided by SyndiGate Media Inc. (
Reuters
27-05-2025
- Business
- Reuters
ASEAN unveils strategic plan to integrate its economies
KUALA LUMPUR, May 27 (Reuters) - The Southeast Asian bloc ASEAN on Tuesday announced an ambitious strategic plan that includes harmonising trade standards and greater financial integration in an effort to collectively become the world's fourth-largest economy. The five-year, 41-page plan for the 10-member Association of Southeast Asian Nations, released during a leaders' summit in Malaysia, calls for increased regional trade, freer movement of businesses and people, enhanced transparency and regulatory practices and sustainable mining, industry and farming policies to attract foreign investment. The plan said ASEAN countries - Indonesia, Thailand, Malaysia, Vietnam, the Philippines, Singapore, Cambodia, Laos, Myanmar and Brunei - must deepen their economic integration, pursue energy security, boost transport connectivity and strengthen supply chains. "Carrying on with business as usual will not suffice for this highly dynamic economic region," the plan said. "For ASEAN to become the fourth-largest global economy by 2045, countries in the region will need to deepen their economic integration and enhance their agility to address multifaceted challenges." The document identified several challenges for ASEAN's economic integration ranging from geopolitical tensions, shifting trade flows and technological transformation to climate change impacts and demographic shifts. Formed in 1967 initially as five members, ASEAN established an economic community in 2015 with the aim of integrating its economies and boosting the region's global standing. But despite rapid growth of its members economies in recent years and a collective GDP of $3.8 trillion, integration has been slow, with huge differences in its members' economies, political systems, population sizes and development levels, and no central authority to ensure compliance with ASEAN agreements and initiatives. The strategic plan said ASEAN's Economic Community Council would be be responsible for implementing the strategies while the ASEAN secretariat would monitor implementation. The ongoing tariff war between the United States and China and steep U.S. tariffs on Southeast Asian countries has created urgency for ASEAN to move towards regional integration faster, said Tricia Yeoh, Associate Professor of Practice at the University of Nottingham Malaysia. Yeoh said ASEAN countries must recognise the greater collective value of unified negotiations rather than pursuing bilateral agreements on their own. 'ASEAN needs to demonstrate efficacy in order for it to remain relevant. If they can't even achieve negotiating over Myanmar or the code of conduct with China on the maritime issue, people will question ASEAN's purpose,' she said, referring to two thorny political issues within the bloc.
Free Malaysia Today
27-05-2025
- Business
- Free Malaysia Today
Small, pragmatic steps best for Asean integration, says Nazir
Asean-BAC chairman Nazir Razak speaking to FMT during the 46th Asean Summit and related summits in Kuala Lumpur. KUALA LUMPUR : Asean should focus on practical, incremental steps rather than grand ambitions to strengthen regional economic integration, says Asean Business Advisory Council (Asean-BAC) chair Nazir Razak. Speaking to FMT on the sidelines of the 46th Asean Summit and related summits here, Nazir said he was initially inspired by the bold aspirations laid out in the Asean Charter when it was adopted in 2007. But over time, he came to believe that a more modest and targeted approach would work best for the region. 'We thought that when Asean grows up, we'd want to be like the European Union, but it's not the right model for us,' he said. 'Asean works best when you don't go for giant, ambitious leaps and achieve very little. Instead, you go for concrete, small steps and move forward progressively.' Nazir's remarks come amid growing global uncertainty, with rising protectionism and the threat of tariffs which the US began introducing in April. Businesses across the region have raised concerns about mounting barriers to trade and investment, and are calling on governments to present clear plans for navigating geopolitical rifts, particularly those forcing companies to choose between US and Chinese markets. 'I think the world now accepts that completely unfettered free markets are no longer a reality, and we accept that within Asean, we all have our domestic political priorities,' Nazir said. 'There will be restrictions, (but) those are accepted now, more than ever.' Still, he said that negotiating the right trade deals, including with the US on non-tariff barriers, was an important strategy to address these risks. 'It's a question of negotiating the right deals, and even in the case of Malaysia-US relations, there are conversations around the various non-tariff measures and how to bring them down,' he said. These restrictions and pressures have also prompted Asean members to rethink their reliance on traditional partners and explore more intra-Asean trade and South-South cooperation. In terms of strengthening the regional economy, Nazir said Asean was becoming a very attractive destination, especially given the changing world order. He urged businesses to diversify their markets, particularly as traditional partners like the US begin imposing new trade barriers. 'We have all taken for granted that we've got this big US market, and perhaps because of that, we have not fully explored other opportunities,' he said. 'Not just China, but also India, the Gulf Cooperation Council and other areas of the South.' While governments can help pave the way through diplomacy and trade agreements, he said that 'ultimately it's up to the private sector to go and search for new markets as one closes'.
Bloomberg
26-05-2025
- Business
- Bloomberg
Thai FM Calls for Joining Global Supply Chains
Thailand's Foreign Minister Maris Sangiampongsa urged ASEAN countries to pursue stronger integration into global supply chains to benefit from economies of scale and gain better access to larger markets. (Source: Bloomberg)
