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The Role of the African Continental Free Trade Agreement (AfCFTA) in Improving Supply Chain Connectivity: A Case Study of Olam Nigeria in Kwara State

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  • NGN 5000

Background of the Study
The African Continental Free Trade Agreement (AfCFTA) aims to boost intra-African trade by reducing tariffs, harmonizing trade regulations, and fostering supply chain connectivity. For companies like Olam Nigeria, operating in Kwara State, AfCFTA presents an opportunity to enhance regional supply chain efficiency by streamlining cross-border trade processes (Adedeji & Mensah, 2023).

As one of the largest trade agreements globally, AfCFTA seeks to eliminate barriers that have traditionally hindered supply chain connectivity in Africa. This study examines its role in improving Olam Nigeria's supply chain operations within the framework of AfCFTA (Okafor & Adama, 2024).

Statement of the Problem
Despite its potential benefits, the implementation of AfCFTA faces challenges, including inadequate infrastructure, inconsistent policies, and lack of awareness among stakeholders. Olam Nigeria’s operations in Kwara State provide a case study to evaluate how AfCFTA influences supply chain connectivity and the barriers to its effective adoption (Bello & Yusuf, 2023).

Objectives of the Study

  1. To analyze the role of AfCFTA in enhancing supply chain connectivity for Olam Nigeria.
  2. To assess the challenges faced by Olam Nigeria in implementing AfCFTA provisions.
  3. To recommend strategies for maximizing the benefits of AfCFTA in supply chain operations.

Research Questions

  1. How does AfCFTA enhance supply chain connectivity for Olam Nigeria?
  2. What challenges hinder the effective implementation of AfCFTA provisions?
  3. What strategies can help Olam Nigeria maximize the benefits of AfCFTA?

Research Hypotheses

  1. H0: AfCFTA does not significantly improve supply chain connectivity for Olam Nigeria.
  2. H0: Implementation challenges do not significantly affect Olam Nigeria’s adoption of AfCFTA.
  3. H0: Strategic measures do not significantly enhance the benefits of AfCFTA for Olam Nigeria.

Scope and Limitations of the Study
The study focuses on Olam Nigeria’s supply chain operations in Kwara State, exploring the impact of AfCFTA on connectivity. Limitations include variability in policy implementation across African countries and access to regional trade data.

Definitions of Terms

  1. AfCFTA: A trade agreement among African Union member states aimed at creating a single market for goods and services.
  2. Supply Chain Connectivity: The seamless integration of supply chain processes across regions or borders.
  3. Cross-Border Trade: Exchange of goods and services between neighboring countries or regions.




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