AfCFTA: status, achievements, opportunities and main obstacles to its implementation

A publication from AfCFTA Dialogues, a platform dedicated to promoting awareness and understanding of the African Continental Free Trade Area (AfCFTA), provides a concise, yet complete analysis of the current status of the AfCFTA implementation in light of the 2023 African Union's (AU) theme on accelerating the implementation of the agreement. After describing the process that led to the AfCFTA adoption, as well as the achievements and opportunities that derive from it, the document maps the key obstacles to its implementation, providing some recommendations to address them.

In addition to the generally known challenges, like the infrastructure gap, the restrictions on movement of African citizens within the continent and the lack of the institutional ability by African States  to monitor and control activities occurring in proximity of their land borders, the publication deals with additional aspects that are less debated by AfCFTA analysts. Among them there is the negative perception of African goods by Africans. African consumers, the document notes, generally consider African goods of lower standard compared to those imported from extra-African countries, which contributes to the weak levels of intra-African trade, estimated in 14,9% in the latest African Trade Report (2024) published by AfreximBank. Another key challenge is indicated in the frequent prioritization by African States of national interests in relation to regional and continental ones.

The document concludes with 13 recommendations aimed at guiding policymakers, stakeholders, and communities toward realizing the full potential of the AfCFTA.

Among them, there is the proposal to scale-up awareness campaigns, targeting everyone from government officials to local businesses and communities. This includes the organization of town hall meetings, workshops, and information sessions in local communities to help people understand how the AfCFTA can directly impact their lives and businesses, but also the provision of guidance on export regulations and market access to African businesses and grants to upgrade their production facilities so to enhance their competitiveness in regional markets and compete more effectively on the continental scale.

Important is also the recommendation to ensure the inclusivity of the AfCFTA benefits, so that they can reach everyone, including marginalized groups like women, youth, and rural communities. This can be done by creating opportunities for them to participate in trade through targeted support programs and initiatives, like the creation of business incubators or the provision of access to microfinance loans.

Last but not least, the development of online platforms for customs clearance and digital payment systems is key for encouraging intra-African trade.

By implementing these and the other recommendations contained in the document, African nations can deeper economic integration, enhance competitiveness of their businesses, and improve standards of living for their citizens, the document concludes. Making sure that no one is left behind...