AfCFTA Progress
The African Continental Free Trade Area (AfCFTA) sees accelerated implementation as more countries begin trading under the framework, advancing the ambitious goal of creating the world's largest free trade zone by population.
Overview
AfCFTA basics:
Key Facts
| Aspect | Detail |
|---|---|
| Members | 54 of 55 AU members signed |
| Population | 1.3 billion |
| Combined GDP | $3.4 trillion |
| Goal | Single African market |
Implementation Status
Current progress:
Trading Status
| Milestone | Status |
|---|---|
| Agreement signed | 2018 |
| Entered into force | 2019 |
| Trading began | 2021 |
| Countries trading | Growing |
Trade Benefits
Expected gains:
Projections
| Metric | Potential |
|---|---|
| Intra-African trade | 50%+ increase |
| Real income | $450 billion by 2035 |
| Poverty reduction | 30 million lifted |
| Women/youth | Disproportionate benefits |
Key Sectors
Focus areas:
Priority Industries
| Sector | Potential |
|---|---|
| Agriculture | Major opportunity |
| Manufacturing | Value chains |
| Services | Growing inclusion |
| Automotive | Protocol signed |
Challenges
Implementation obstacles:
Barriers
| Issue | Status |
|---|---|
| Infrastructure | Inadequate |
| Non-tariff barriers | Persistent |
| Rules of origin | Implementation |
| Payments | System development |
Pan-African Payments
PAPSS development:
Payment System
| Feature | Status |
|---|---|
| Launch | Operational |
| Purpose | Intra-African payments |
| Adoption | Growing |
| Impact | Reducing dollar dependence |
Regional Economic Communities
Building blocks:
Blocs
| REC | Role |
|---|---|
| ECOWAS | West Africa |
| EAC | East Africa |
| SADC | Southern Africa |
| COMESA | Eastern/Southern |
| UMA | North Africa |
Rules of Origin
Critical element:
Status
| Sector | Progress |
|---|---|
| Negotiations | Ongoing |
| Adoption | 87% of tariff lines |
| Remaining | Sensitive sectors |
Dispute Settlement
Legal framework:
Mechanism
| Element | Status |
|---|---|
| System | Established |
| Cases | Beginning |
| Enforcement | Developing |
Private Sector
Business engagement:
Role
- Trade utilization
- Advocacy
- Information needs
- Capacity building
- Investment
Major Economies
Key players:
Country Roles
| Country | Position |
|---|---|
| Nigeria | Largest economy |
| South Africa | Industrial base |
| Egypt | Northern anchor |
| Kenya | East African hub |
Looking Ahead
Future milestones:
2025 Priorities
- Protocol finalization
- Tariff liberalization
- Infrastructure links
- Digital trade
- Investment protocol
AfCFTA represents Africa's most ambitious integration project, with potential to transform the continent's economic trajectory if fully implemented.
