Keys to success for the AfCFTA negotiations

The African Continental Free Trade Area (AfCFTA), which entered into force in 2019, represents the largest free trade area created since the establishment of the World Trade Organization. By bringing together almost all African economies into a single market, the agreement aims to significantly boost intra-African trade, industrialisation and economic integration. If successfully implemented, the AfCFTA could unlock major economic potential across the continent, expanding consumer and business spending and strengthening Africa’s position in global trade. However, the success of the agreement will depend not only on tariff reductions but also on the ability of African countries to address structural, institutional and policy challenges that have historically constrained regional integration.

This policy brief argues that the AfCFTA’s effectiveness will depend on several key enabling conditions. First, African countries must address persistent barriers to intra-continental trade, including inadequate transport infrastructure, inefficient customs procedures and high trade costs. Even where tariffs are reduced, logistical bottlenecks and weak connectivity can significantly limit the practical benefits of market integration. Improving trade facilitation, investing in cross-border infrastructure and harmonising customs procedures will therefore be essential to making the free trade area operational.

Second, the development of competitive productive capacities across African economies will be critical. Many African countries currently rely heavily on exports of raw materials, while intra-African trade in manufactured goods remains relatively limited. The AfCFTA could support industrialisation by expanding regional value chains and creating larger markets for African producers. However, this will require complementary industrial policies, investment in skills and technology, and efforts to diversify production structures across the continent.

Third, effective institutional coordination and political commitment will be necessary to ensure the agreement’s implementation. The AfCFTA involves complex negotiations on issues such as rules of origin, services liberalisation and dispute settlement. Without sustained cooperation among member states and strong institutional frameworks at both national and continental levels, progress in these areas may be slow. Ensuring transparency, regulatory coherence and predictable trade rules will be key to building confidence among governments and businesses.

Finally, the policy brief emphasises the importance of ensuring that the benefits of the AfCFTA are broadly shared. Small and medium-sized enterprises, informal traders and smaller economies may face particular challenges in adapting to increased competition. Targeted policies, including capacity-building initiatives and support for trade participation, will therefore be necessary to ensure that the agreement contributes to inclusive development.