AfCFTA Two Years On: Is the African Free Trade Zone Actually Working?

The African Continental Free Trade Area (AfCFTA) is, by some measures, the world's largest free trade area. It covers 55 countries, 1.4 billion people, and a combined GDP of $3.4 trillion. When it went operational in January 2021, it was supposed to transform intra-African trade — which at the time represented just 15% of total African exports, compared with 60% for European intra-bloc trade.

The Early Results

The data is mixed. Intra-African trade grew by 7% in 2022 — encouraging but not transformational. Several sectors are seeing genuine momentum: food and agricultural products, manufactured goods, and services, particularly financial services and digital products.

Nigeria, the continent's largest economy, is particularly important. After initially hesitating to sign, Nigeria committed fully in 2019. Nigerian manufacturers are beginning to use AfCFTA provisions to access markets in East and Southern Africa that were previously protected by high tariffs.

The Obstacles

Non-tariff barriers are the real problem. Even where tariffs have been reduced, goods moving across African borders face lengthy customs procedures, poor road and rail infrastructure, and in some cases outright corruption at border posts. The agreement reduces tariffs; it cannot single-handedly fix infrastructure or governance.

Why It Still Matters

Despite the obstacles, AfCFTA is the most significant structural reform in African economic history since independence. The framework is in place. The question is whether the political will exists to tackle the non-tariff barriers that are doing more than tariffs to suppress intra-African commerce.