The African Continental Free Trade Area (AfCFTA) has projected that intra-African trade will reach a yearly volume of $250 billion this year, representing a 14 percent rise from the $220 billion recorded last year. This announcement was made by the Secretary-General of AfCFTA, Wamkele Mene, on the sidelines of the Invest Lagos 3.0 Conference held in Lagos.
Implementation and Integration
Mene stated that 50 African countries are currently implementing the agreement, with all underlying protocols concluded. This provides a firmer basis for regional economic integration and cross-border commerce. He urged African nations to deepen trade among themselves in the face of growing global market uncertainties, warning that many countries on the continent have continued to lose market share in traditional export destinations while confronting rising trade barriers.
“Many African countries have lost market share in key international markets and face increasing trade barriers. We have to build a strong domestic market within Africa because our future growth lies here on the continent,” Mene said.
Global Disruptions and Vulnerabilities
He linked the urgency for stronger intra-African trade to recent global disruptions, including the COVID-19 pandemic, the Russia-Ukraine war, and the Middle East crisis. These events exposed Africa’s vulnerability to external shocks, supply chain disruptions, and excessive import dependence.
Key Obstacles
Mene identified major impediments to trade expansion, including high trade finance costs, inadequate transport infrastructure, logistics bottlenecks, and restrictions on the movement of people. He illustrated the severity of the challenge by citing the Lagos-Abidjan corridor: transporting goods between the two cities, roughly 1,080 kilometers, can take up to 17 days due to multiple checkpoints and border-related delays.
Visa-Free Policies
Mene called for wider adoption of visa-free and visa-on-arrival policies for African business travelers, arguing that easier movement of entrepreneurs, investors, and skilled professionals would significantly accelerate trade and investment flows. He commended Nigeria, Ghana, Benin, Rwanda, Kenya, Togo, and Congo-Brazzaville for taking steps in that direction.
Digital Economy Opportunities
On the digital economy, Mene described Lagos as Africa’s leading fintech hub and a major center for technological innovation. He noted that the continent’s digital economy is projected to reach $712 billion by 2035. The rapid growth of digital technologies presents significant opportunities for businesses, entrepreneurs, and farmers through digital payments, e-commerce, connectivity, and emerging technologies.
“The future of Africa’s economy will be driven by digital innovation and industrialization. We must invest in digital public infrastructure, data centers, and payment systems that support seamless business transactions across borders,” he said.
Payment Systems
Mene highlighted the role of the Pan-African Payment and Settlement System (PAPSS) in enabling cross-border transactions in local currencies, thereby reducing the continent’s dependence on the United States dollar for intra-African trade.
Industrial Development
On industrial development, Mene described manufacturing as central to Africa’s economic transformation, noting that Lagos hosts one of the continent’s largest concentrations of industrial enterprises. He urged governments, development finance institutions, and private investors to expand manufacturers’ access to capital while dismantling the trade barriers constraining the movement of goods across African markets.
