To reap the benefits of the African Continental Free Trade Area (AfCFTA), non‑tariff barriers and other obstacles to cross‑border movement of goods must be addressed, the World Bank Group says. In a new report titled “Can African trade integration be a game changer?”, the Washington‑based bank notes that the AfCFTA aims to connect 54 countries with a combined population of 1.3 billion and a GDP of $3.4 trillion, but it still faces several challenges.
The World Bank’s research suggests that the agreement could deliver significant economic and social benefits, including faster growth, higher incomes and reduced poverty. To realize these gains, ministries of trade and other government agencies in each country need to become familiar with the AfCFTA and understand the roles they may play in its implementation. Tackling non‑tariff barriers to goods and reducing obstacles to trade in services—such as logistics, transport, financial services, tourism and communications—are paramount.
The report emphasizes that signing the agreement is only the first step. The African private sector, especially SMEs that could benefit from the AfCFTA, should study the treaty’s chapters and learn how provisions like the liberalisation of trade in services can boost their businesses. Unlocking the agreement’s potential for trade, investment and jobs will require support for the AfCFTA Permanent Secretariat in Accra, Ghana, which administers the pact, as well as harmonisation of domestic laws with protocols on investment, intellectual property, competition and digital trade.
To establish the groundwork for regional value chains, the World Bank urges stakeholders to promote progressive liberalisation of cross‑border trade and investment policies in line with AfCFTA protocols. Member states should strengthen trade and investment in services by facilitating digital services, removing restrictions on foreign direct investment, and liberalising the movement of workers. Ultimately, it is up to member states, together with private‑sector and civil‑society champions, to ensure that the AfCFTA becomes a game changer for Africa and delivers its many benefits to the continent’s people.
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