LTIF: African businesses tasked with producing enough to benefit from AfCFTA

Trade between African countries makes up between 15%–20% of the continent’s total trade, according to the World Bank. Speakers at the Loveworld Trade & Investment Forum (LTIF) in Accra, Ghana, argued that the gap lies in the capacity of African businesses to produce, finance and deliver goods at scale.

The African Continental Free Trade Area (AfCFTA) is meant to make cross-border trade easier. But access to a bigger market does not give companies the capacity to meet export standards, secure financing or deliver orders consistently.

The faith-based forum was held on October 6 and 7 at the Ohene Konadu Auditorium, University of Professional Studies, Accra. Organisers put attendance at more than 2,000.

Stephanie Oforka, executive minister of commerce at Loveworld Kingdom and LTIF convener, framed the challenge around production.

“Potential itself does not create prosperity. Production actually creates prosperity,” she told delegates.

She argued that African countries must produce more of what they consume and supply what international markets demand. African businesses, she urged, should move “from connections to transactions, from introductions to partnerships, from conversations to commerce.”

Also read: Zenith Bank inks MoU with AfCFTA to showcase African products via smart trade portal 

What speakers say African businesses need

Adetola Onayemi, co-founder and chief executive officer of Norebase, stressed the need for predictable trade rules.

“Business people don’t care as much about risk. What they care about is predictability,” he explained.

He urged African businesses to take advantage of the AfCFTA and engage policymakers to improve the rules on cross-border trade.

Investors raised a related point. Fiyin Ogunlesi, Founder and Managing Partner of RegalStone Capital, and Olori Boye-Ajayi, Managing Partner of Borderless Trade & Investment, described what backers look for before committing capital. They include up-to-date financial records, measurable performance and predictable operations. Their advice to businesses was to be “simple, boring, and predictable”.

Rosalind Oleki, chief executive officer of Love Passion Mines, pointed to equipment limits in Ghana’s small-scale mining. Some available gold-recovery equipment could not reach the 99.9% recovery rate operators sought, she noted. Small miners also struggle to clear imported excavators and other machinery.

Oleki asked Loveworld’s innovation team to work with the Ghana Gold Board on better gold recovery and refining technology.

Kwabena Situ, Assurance Partner at Deloitte Ghana and head of Deloitte Academy, called for stronger links between finance and industry. He described the task as “connecting capital to production” and “connecting nations to regions” if industrialisation is to happen within a generation.

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Bolaji Akinboro, Co-founder of Cellulant, approached the issue from the angle of wealth creation. He identified production, investment, trust, consumption, distribution and capital formation as elements that must work together. He cited China’s manufacturing-led model as one African businesses can learn from.

Loveworld announces $1 million business fund at LTIF

The Ministry of Commerce of Loveworld Kingdom says it secured a $1 million boost for an investment fund targeting faith-based businesses and entrepreneurs within its network. The fund is meant for businesses that show commercial viability and potential to scale, with production capacity and expansion among its priorities.

Businesses from any sector can apply if they meet its requirements, according to the organisers. No money has been disbursed yet, and the ministry plans to open applications soon.