The African Continental Free Trade Area (AfCFTA) is making significant strides, with 48 countries officially ratifying the agreement, according to Wamkele Mene, Secretary-General of the AfCFTA Secretariat. This development marks a substantial step toward boosting economic integration and trade across Africa.
Mene noted that 19 African nations are already trading under AfCFTA rules, highlighting the agreement’s practical impact. “We have made progress on key issues, including tariff reduction and the list of goods to be traded within Africa,” he said during an interview with the Ethiopian News Agency on Tuesday.
The AfCFTA, backed by the African Union, aims to establish the world’s largest free trade area by creating a single market for goods and services. Once fully implemented, it is expected to connect around 1.4 billion people across Africa, generating a combined gross domestic product (GDP) of $3.4 trillion.
To further enhance trade efficiency, AfCFTA has introduced an online platform to track and eliminate non-tariff obstacles, including complex customs processes and infrastructure challenges. This initiative aims to create a more business-friendly environment across the continent.
Additionally, the Pan-African Payment and Settlement System (PAPSS), launched in January 2022, facilitates cross-border transactions using local currencies. This system aims to reduce dependency on external currencies and save African businesses approximately $5 billion annually in transaction costs.
Despite this progress, Africa faces an infrastructure deficit of around $150 billion, which could limit trade growth. Addressing this challenge is crucial to maximizing the benefits of AfCFTA and supporting sustainable development.
This milestone underscores Africa’s commitment to economic integration and self-reliance. As more countries join, AfCFTA is poised to reshape Africa’s economic landscape, driving stronger intra-continental trade and prosperity.