ISLAMABAD: The Ministry of Commerce has approved ‘Look Africa Plan’ with stringent measures to boost bilateral trade between Pakistan and Africa in the upcoming years.

The plan was approved by the ministry on Aug 17, as per project details available with Dawn.

Pakistan’s total trade with Africa is $3 billion as against the total trade volume of $3 trillion. Pakistan’s share in total trade of African countries is 0.3 per cent.

Under the policy, top 10 countries out of the 54 African nations selected trade promotion include Nigeria, Kenya, South Africa, Morocco, Algeria, Egypt, Sudan, Tanzania, and Ethiopia.

All these countries constitute 78pc of the total African gross domestic product (GDP).

According to the policy, Pakistan will offer to negotiate a preferential trade agreement with three African trading blocs – Southern African Customs Union (SACU), East African Community (EAC), and Economic Community of West African States that constitute (ECOWAS).

SACU members are Botswana, Lesotho, Namibia, South Africa and Swaziland while EAC comprises of Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda.

A similar PTA with ECOWAS, which includes Benin; Burkina Faso; Cabo Verde; Côte d’Ivoire; Gambia; Ghana; Guinea; Guinea Bissau; Liberia; Mali; Niger; Nigeria; Senegal; Sierra Leone; and Togolese, is also envisioned.

The value of bilateral trade between the countries is less than $100 million.

As per policy, joint working groups (JWGs) on trade will be established by the commerce ministry to engage major African countries to have regular interaction.

Currently, Pakistan has only 13 joint ministerial commissions with African countries that are not sufficient for institutional strengthening of both sides.

The JMCs are only with Algeria, Senegal, Morocco, Egypt, Kenya, Libya, Niger, Nigeria, South Africa, Sudan, Tunisia, Uganda, and Zimbabwe. Even the meetings of the JMCs take place after a gap of 5 to 10 years.

The commerce ministry will also open new commercial sections in Africa at least in the largest economies including Egypt, Tanzania, Ethiopia, Sudan and Algeria where Pakistan has resident embassies.

Currently, the commerce ministry’s commercial sections only exists in four African countries — Kenya, South Africa, Nigeria and Morocco.

Until new arrangements, the ministry has given additional charge to look after markets in adjacent countries.

The commercial counselor Nairobi will also look after Uganda, Rwanda, Burundi and Eretria.

The commercial counselor at Casablanca will also have additional charge of Tunisia, Mauritania, Senegal; Commercial secretary Lagos of Niger, Chad, Cameroon, Ghana, Benin and commercial secretary at Johannesburg on Botswana, Lesotho, Namibia, South Africa and Swaziland.

As part of the policy, the ministry will also appoint local people as trade development officer in African countries where resident missions are not stationed. They will work under accredited ambassador’s supervision.

Out of 54 countries, Pakistan has resident missions only in 15 African countries – Egypt, Libya, Algeria, Tunisia, Morocco, Senegal, Nigeria, Niger, South Africa, Mauritius, Zimbabwe, Tanzania, Kenya, Sudan and Ethiopia. The remaining 39 countries are covered through accreditation.

The ministry has also prioritised six sectors to promote its exports to African countries – pharmaceuticals and surgical instruments, electrical appliances, rice, wheat, corn, textiles, cement and construction materials and services.

To enhance market for Pakistani products, top 10 economies will be finalised for holding trade fairs. On the sidelines of Expo Pakistan, seminars will be arranged in Pakistan on priority Africa for trade.

The Trade Development Authority of Pakistan has been asked to provide 80pc to 90pc special subsidy to Pakistani companies to encourage their participation in trade exhibitions in Africa and to sponsor delegations to and from Africa on regular basis.

An African cell is being established at TDAP Karachi to obtain input from stakeholders and coordinate efforts to enhance trade with Africa and provide special incentives for Pakistani companies through trade policy.

Published in Dawn, September 23rd, 2017