Five years on, border bottlenecks are still slowing Africa’s free-trade push
Five years after the African Continental Free Trade Area (AfCFTA) was established, trade growth remains hindered by border bottlenecks and poor infrastructure. Experts argue that non-tariff barriers are the primary obstacle to achieving the pact's economic potential.
Why it matters
Efficient intra-African trade is critical for the continent's economic development and integration into the global market.
Nagging inefficiencies at borders and weak transport infrastructure stand in the way of the African Continental Free Trade Area (AfCFTA) significantly boosting business between member states, nearly five years after it came into effect.
A manufacturing conference in Johannesburg this week heard that African intratrade is about 14%-16% of the continent’s total trade — compared with about 60% for regions such as Europe and Asia.
The continent is far from fully tapping the potential market of more than 1.2-billion people in 55 countries with a combined GDP of $3.4-trillion under the pact, which was first signed in 2018 and came into effect at the start of 2021, Sharon Modiba, chief economist of the International Trade Administration Commission of South Africa, told the conference.
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