The African Continental Free Trade Area (AfCFTA) stands as the world’s largest free trade agreement by number of participating countries, territory, and population. With 54 of the 55 African Union member states signed on, it encompasses a market of 1.3 billion people and a collective GDP of $3.4 trillion. The AfCFTA aims to enhance economic growth, intra-African trade, and investment across the continent. However, despite its establishment in February 2020, implementation has been slow.
The Economic Commission for Africa reports that African nations still engage more in trade with the rest of the world than among themselves. Key barriers include insufficient infrastructure, limited financing, and governance challenges.
This week, leaders from Africa’s public and private sectors gather in Kigali, Rwanda, for the second Biashara Afrika Business Forum to address the AfCFTA’s challenges and opportunities. Ahead of the event, CNN’s Eleni Giokos spoke with Wamkele Mene, Secretary General of the AfCFTA, about overcoming these obstacles.
Interview Highlights:
Eleni Giokos (EG): Did you anticipate the intensity of establishing diverse standards across Africa when you became Secretary General?
Wamkele Mene (WM): The scale of the task was underestimated. The AfCFTA includes 47 state parties and 42 currencies, with vast disparities in GDP per capita. Integrating such a fragmented market presents significant challenges.
EG: How has the AfCFTA evolved since its inception?
WM: Established in February 2020, we faced immediate obstacles due to the COVID-19 pandemic. However, we have finalized all protocols, including crucial aspects like digital trade and dispute settlement mechanisms. We are now moving towards implementation.
EG: In 2022, seven countries piloted the AfCFTA. How is this progressing?
WM: By October, 37 countries will be ready to trade under the AfCFTA rules, having introduced necessary customs systems and integrated the agreement into their national laws.
EG: Many in the private sector feel the AfCFTA isn’t delivering results. What’s your response?
WM: Integrating a market of 47 countries takes time. The private sector is vital for this integration, and we must remember that overcoming 60 years of market fragmentation will not happen overnight.
EG: Aliko Dangote mentioned needing 35 visas to travel across Africa. How does this affect cross-border business?
WM: Visa requirements hinder intra-African trade and investment. Only four countries have ratified the African Union’s protocol on the free movement of persons, with concerns around national security complicating the issue.
EG: Can we discuss integration without focusing on infrastructure?
WM: Infrastructure is crucial for efficient trade. Initiatives like the Lobito corridor will enhance connectivity, enabling smoother goods transit.
EG: What do you hope to discuss five years from now?
WM: Patience is key. If we can increase intra-African trade from 15% to 25-30%, it will be a significant achievement. Doubling intra-African trade is possible with the right tools, payment systems, and political will in place.
In 2018, many doubted the AfCFTA would even be signed, yet it was ratified within a year. Now, 47 countries have signed on, and 37 will soon demonstrate tangible implementation. Each milestone brings new expectations, but we remain optimistic about the AfCFTA’s potential to transform Africa’s trade landscape.
