The establishment of the African Continental Free Trade Area (AfCFTA) has been described as a turning point in the quest by Africa’s founding fathers to achieve continental economic integration and sustainable growth.
The Secretary-General of the AfCFTA Secretariat, Wamkele Mene, stated this at a plenary session on the theme: “Realising the Vision of the African Founders: Progress Towards Africa’s Trade and Economic Integration” as part of the 32nd Afreximbank Annual Meetings (AAM) in Abuja on Thursday.
Recalling the vision of Africa’s founding fathers for a truly continental initiative built on trade, shared infrastructure, and a common sense of destiny, Mene said that bold ambition has been realized through AfCFTA.
“AfCFTA demonstrates Africa’s unwavering commitment to take charge of its own economic future. Its implementation brings renewed hope and fresh momentum to chart a more prosperous, self-reliant course for all Africans,” he said.
The AfCFTA, he explained aims to unite all 55 African Union Member States, representing over 1.4 billion people and a combined gross domestic product (GDP) of about $3 trillion, into a single integrated market for goods, services, investment, and movement of people.
He said the unified market under AfCFTA would unlock the dynamism of Africa’s entrepreneurs, spur industrialization, create millions of jobs for the youth, and shift the continent’s economies from commodity dependence towards higher value addition and structural transformation.
So far, he said 49 of the 55 member countries have ratified the Agreement, representing 90.7% of signatories, reflecting a shared conviction in the promise of economic integration.
With AfCFTA, the Secretary-General said Africa is beginning to see tariff reductions and simplified customs procedures coming into effect and removing long-standing barriers to commercial trade, paving way for businesses under AfCFTA rules, benefitting from reduced or zero tariffs.
Also, he said under AfCFTA trade in goods has moved faster, with momentum building in services, including finance, retail, telecommunications, and tourism sectors of the economy.
To build on the momentum, he said key protocols on Investment have been concluded and adopted, along intellectual property rights, competition policy, digital trade, and women and youth in trade, to provide a solid policy foundation for inclusive, modern trade.
To bring into alignment national trade laws, customs rules, and product standards with the AfCFTA framework, he said several member states have initiated policy reforms to harmonise and simplify cross-border trade and improve the broader business environment.
Since the launch of commercially meaningful trading in October 2022, he said there has been a diversification of export destinations within Africa as well as a reduction in trade barriers, and a surge in economic activity translating into jobs, SME growth, and better livelihoods for small-scale traders, women, and youth.
To consolidate on the progress so far, the AfCFTA scribe said his Secretariat was compiling AfCFTA-specific trade data, that would provide insights into volumes, sectoral performance, and emerging trends, to reinforce the AfCFTA’s role in reshaping Africa’s trade.
On the establishment of key operational tools, he said over 92% of the negotiations on Rules of Origin have been completed, to define what constitutes an “African product”.
To eliminate the constraints associated with handling of transactions with the dollar and other international currencies, he said the Pan-African Payment and Settlement System (PAPSS) has since gone live, to allow cross-border payments in local currencies, cutting transaction costs.
Besides, he said the AfCFTA Adjustment Fund is already in place with seed capital from Afreximbank, to help countries manage short-term revenue losses and support new trading companies and aggregators.
Apart from engaging the private sector in strategic value chains in automotive, pharmaceuticals, agro-processing, and textiles, Mene said Afreximbank has also committed $1 billion to support Africa’s automotive sector, especially local component manufacturing, in addition to a $46 million backing of the fisheries value chain development programme.
Other strategic initiatives include the rolled out of digital tools like the AfCFTA e-Tariff Book and the Online Tariff Negotiation Portal, to make trade rules more accessible and transparent, while the Non-Tariff Barriers mechanism has been unveiled to allow traders to report and resolve bureaucratic issues, customs delays, or inconsistent regulations.
“The AfCFTA has therefore moved beyond political declarations to rules-based, operational trade, underpinned by legally binding protocols on trade in goods, trade in services, dispute settlement, investment, competition policy, intellectual property rights, and digital trade.
“The framework provides the foundation for predictable and transparent trade governance, critical for long-term planning and investment in Africa,” he said.
He described AfCFTA as not just any trade agreement, but one that promotes inclusivity among countries in Africa, with its protocols reflecting Africa’s determination to dismantle barriers for SMEs and informal traders, while expanding opportunities for targeted interventions and gender-responsive trade governance.
While calling for the adoption of more agreements and protocols to remove non-tariff barriers, such as cumbersome regulations, inefficient customs procedures, and infrastructure gaps, he underlined the need for investments in transport, energy, and digital infrastructure to physically connect existing markets and unlock true continental integration.
“The slow ratification of the Protocols on Free Movement of Persons and the right of establishment poses a serious constraint, especially to services trade. The AfCFTA’s full promise depends on complementing that with movement of people, open skies, and a framework that enables businesses to operate seamlessly across borders,” he stressed.
