AfCFTA at Five: Challenges in Intra-African Trade

The African Continental Free Trade Area (AfCFTA) has been operational for five years, with the potential to transform trade across Africa. Adesoji Adesugba discusses the challenges faced, including high non-tariff barriers that equate to 292% of tariff costs, which significantly impede trade efficiency.

Currently, intra-African trade stands at approximately 15%, compared to 60% in Asia and two-thirds in the European Union. The World Bank estimates that full implementation of AfCFTA could raise continent income by hundreds of billions of dollars and lift ten million people out of poverty within a decade.

However, the actual movement of goods across borders remains slow, with traders facing delays and high costs. The agreement's success hinges on reducing these barriers and ensuring that trade deals translate into real economic benefits.

The need for a more efficient trade environment is critical, as the current framework does not adequately support the development of industries or the movement of goods.