AfCFTA Gains Depend on Cutting Domestic Trade Costs, World Bank Says
A new World Bank report suggests that the African Continental Free Trade Area (AfCFTA) will only succeed if African nations prioritize reducing domestic trade costs over simple tariff negotiations. Key recommendations include improving customs efficiency, logistics, and infrastructure to boost intra-African trade.
Why it matters
Reducing non-tariff barriers is essential for economic integration in Africa, as intra-continental trade currently remains low despite the potential for manufacturing growth.
email facebook linkedin twitter Whatsapp About 60% of Africa's estimated trade costs are unilateral or arise behind national borders, according to a new World Bank report. The World Bank says African governments should focus on customs, logistics, transport, standards and services barriers if the AfCFTA is to translate tariff preferences into actual trade. Deeper liberalization of transport, telecommunications, financial and professional services could increase intra-AfCFTA services trade by 60–64% by 2035, the report estimates. About 60% of Africa's estimated trade costs are unilateral or arise behind national borders, according to the World Bank's report Integrating Africa: From Threads to Hubs , released on August 28, 2026.
The report identifies customs inefficiencies, weak logistics, transport restrictions, fragmented standards, services barriers and inadequate infrastructure among the factors increasing the cost of trading across African borders.
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