THE African Continental Free Trade Area (AfCFTA) is gaining momentum, with 48 nations officially ratifying the agreement, paving the way for deeper economic integration across the continent. According to AfCFTA Secretary-General Wamkele Mene, trade among 19 African nations under the framework is already in progress.
Progress in trade implementation
Mene, speaking to the state-run Ethiopian News Agency on Tuesday, highlighted key advancements in tariff reductions and the listing of goods eligible for intra-African trade. He stressed that Africa is making significant strides towards establishing a single market, which will cater to 1.4 billion people and a combined GDP of $3.4 trillion once fully operational.
The African Union considers AfCFTA a transformative trade pact designed to position Africa as the world’s largest free trade area. Mene urged African nations to expedite the implementation of agreed-upon trade rules to unlock new markets and attract more investment, particularly in light of increasing global trade restrictions.
Challenges and infrastructure gaps
Despite the progress, infrastructure remains a significant barrier to fully realising AfCFTA’s potential. Mene pointed out that Africa faces an estimated $150bn infrastructure deficit, limiting the ability to facilitate large-scale trade across the continent. Addressing these gaps, he noted, is crucial to ensuring the success of the free trade area.
Mene also acknowledged the increasing involvement of the private sector and the completion of legal protocols required by African heads of state to enhance AfCFTA’s implementation. The ongoing expansion of the agreement signals a shift towards stronger economic cooperation, fostering industrial growth and cross-border trade.
With more nations aligning with AfCFTA’s framework, Africa is moving closer to creating a seamless and competitive trading bloc that could reshape its economic landscape.
