The AfCFTA opportunity: from agreement to participation

The African Continental Free Trade Area represents one of the continent’s most significant economic opportunities. It brings together 55 countries and eight Regional Economic Communities in a single market for goods and services, creating a framework for deeper integration and stronger intra-African trade.

The scale of that opportunity matters. Intra-African trade currently accounts for only 18% of Africa’s total trade. Much of the continent’s external trade remains concentrated in raw commodities, while trade within Africa is more diversified across services, manufactured products, and processed food.

UNECA estimates that the AfCFTA could raise intra-African trade by 52.3%, particularly when countries prioritise value-added goods and services made on the continent. That shift could help African economies retain more value, strengthen regional supply chains, and build more competitive businesses.

An agreement is only the beginning

The existence of a continental trade agreement does not automatically create participation. Many businesses—especially smaller firms and informal cross-border traders—still lack the information and practical support required to use it.

The barriers are connected. Businesses need to understand trade rules and procedures. They need the skills to reach new markets, access to appropriate finance, and reliable information about commercial opportunities. They also need public policy that recognises how trade rules affect different sectors and communities.

Without that foundation, the firms that could benefit most from expanded regional trade may remain outside it.

Turning evidence into access

Progress depends on closing the gap between continental policy and everyday business decisions. Evidence-based research can show where barriers persist and which interventions are working. Training can translate trade agreements into practical knowledge. Public-private dialogue can bring governments and businesses together to resolve implementation challenges.

GAPI works across these areas: producing evidence, strengthening capacity, and convening dialogue. The objective is not simply to promote trade in principle, but to help African businesses and communities participate in it in practice.

The AfCFTA’s promise will be realised when more firms can find markets, meet requirements, move goods and services efficiently, and compete on fair terms. That is how a trade agreement becomes an engine for shared prosperity.

Figures are drawn from UNECA, the African Development Bank Macroeconomic Report 2024, and Luke (2023), as referenced in GAPI’s 2024–2029 Strategic Plan.