AfCFTA’s Progress: A Milestone in Africa’s Economic Integration
Board Chair of TradeMark Africa and former Prime Minister of Ethiopia, has commended the achievements of the African Continental Free Trade Area (AfCFTA), describing it as Africa’s most successful Agenda 2063 flagship project.
Speaking at a lecture organized by the AfCFTA Secretariat in Accra, he noted that while challenges persist, significant progress has been made in breaking trade barriers and fostering economic growth across the continent.
Strong Political Commitment and Growing Trade
Desalegn highlighted that since the AfCFTA’s launch in 2020, it has rapidly progressed, becoming the most advanced initiative under Agenda 2063, according to the African Union Commission and AUDA-NEPAD’s 2022 biennial report. The overwhelming political commitment, demonstrated by 48 ratifications, underscores Africa’s collective belief in the vision of a single market.
Trade under the AfCFTA framework has already begun, with businesses actively exploring new opportunities. Between 2017 and 2023, intra-African trade grew by 27%, rising from $140 billion to $190 billion and is projected to surpass the $200 billion mark for the first time. This expansion signifies that more African goods are being exchanged within the continent, directly benefiting local businesses and reinforcing trade integration.
The World Trade Organization (WTO) further projects that Africa’s exports will outpace other regions in 2024, growing at 5.3%—a significant increase from 3.1% in 2023. Imports are also expected to rise by over 4%, reflecting positive economic activity on the continent.
Concrete Steps Toward Trade Integration
Desalegn acknowledged the tangible progress made in implementing key AfCFTA structures. These include the publication of the e-tariff book, which digitizes access to tariff schedules and rules of origin, ensuring transparency and ease of trade. Additionally, 43 countries—representing 78% of the African Union’s membership—have submitted their tariff offers, with 92% of tariff line rules of origin already agreed upon.
Other key milestones include the establishment of an online Non-Tariff Barrier (NTB) elimination mechanism, the launch of the Pan-African Payment and Settlement System (PAPSS) to facilitate cross-border transactions, and the development of a trade observatory to provide data and insights for businesses and policymakers.
Inclusive Trade and Future Prospects
One of the landmark achievements under AfCFTA is the adoption of the Protocol on Women and Youth in Trade in 2024. This legally binding instrument underscores Africa’s commitment to inclusive trade by empowering women and young entrepreneurs in the economic integration process.
Despite these successes, Desalegn cautioned that the journey is far from over. Infrastructure gaps, complex regulations, and financial constraints still pose significant hurdles. However, the momentum built around AfCFTA signals a strong foundation for Africa’s economic transformation. He called on policymakers, businesses, and development partners to intensify efforts in addressing these challenges to fully unlock AfCFTA’s potential. “The AfCFTA is not just a vision—it is a reality taking shape,” Desalegn remarked. “We must build on this progress and ensure that trade benefits all Africans, creating a competitive, industrialized, and self-sufficient continent.”
