The Nigerian Export-Import Bank (NEXIM) has assured that the much-expected trans-West Africa shipping line will come on stream in September.
Called, Sealink Promotional Company Limited, the $60Million shipping line is expected to facilitate maritime transportation within the West and Central African. It is being promoted by the bank.
The Managing Director and Chief Executive Officer of NEXIM; Mr. Roberts Orya, who explained at a stakeholders forum in La¬gos at the weekend that signifi¬cant progress has been made so far towards raising the required capital for its take-off, also added that investment drive was still on towards meeting the financial portfolio target of the company.
“Those who have been with us at the previous sessions will agree with me that responses from the governments and the Organised Private Sector in the various countries have been quite tremendous”.
Orya said the shipping concern would be of immense benefit to Nigerian manufacturers and exporters as it would allow a structured access to markets in West and Central Africa.
“The project is aimed at boosting maritime trade among member countries of ECOWAS as well enhancing regional integration.
He added that more inves¬tors have also shown interest in the Sealink public offer which is selling at $0.70 per ordinary share with net proceeds of $60 million. The public offer which opened on March 24, 2014 is expected to close by Septem¬ber 30, 2014.
Orya said the purpose of the offer is to raise the funds needed to acquire shipping vessels for conveying people and cargo across the West and Central Africa coast.
Stressing the importance for investors to further support the project, the NEXIM boss said the Sealink project would en¬hance trade integration in the region.
He said the ability of the regional economies of West and Central Africa to grow and compete on a global scale de¬pends largely on efficient and barrier free intra and inter re¬gional trading.
According to him, “empirical evidence has shown that unlike the other developed regions of the world, Africa has continued to under-perform its growth and development potentials, partly due to its low trade volumes, amongst other factors”.
He explained that Africa accounts for about 15 per cent of the global population and possesses very rich agricultural and mineral endowments, but its contribution to the global trade has been low, accounting for only 3.5 per cent in 2012, as against Europe’s contribution of 35.6 per cent, 31.5 per cent by Asia and 13.2 per cent by North America.
The NEXIM boss said African governments need to focus more on agriculture and other minerals resources to develop and deepen the continent econ¬omies.
“The Nigerian Export-Import Bank, being Nigeria’s export development finance institution and trade policy has been in the vanguard of promoting developmental ini¬tiatives targeted at removing trade barriers and enhancing regional integration in Africa, in line with the transformation agenda of the president”, Orya stated.
According to him, the Sealink venture will greatly reduce the period it takes to transport goods through the sea to neighbouring countries and drastically reduce the cost of doing business within the community.
If you want to take goods to Ghana from Nigeria by road, it takes six days with a lot of hassles.
“But, if you want to move it by sea, it takes 60 days because you will use European vessels to take the goods to Europe first and then bring it back to Ghana,” Orya said.
He said that “with Sealink, it would take one day or two to freight goods from Nigeria to Ghana by sea using Sealink.
He said that the company would promote increased trade flows and opportunities within ECOWAS, “considering the huge capital flight from the region through the absence of sea trade infrastructure”.
Also speaking on the benefit of the project, Chairman Sealink Board of Directors, Mr. Wilson Attah Krofah said Sealink Project would facilitate the re¬alization of enormous trade in the region.
According to him, benefits such as reduction of non-tariff barriers to trade, elimination of transit corridor issues, and reduction of transaction cost to eco¬nomic operators as well as en-hance fiscal benefits to various governments through formal and documented trade will be achieved.
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