African trade integration requires increased industrial investment

Efforts to bolster intra-African trade are gaining momentum, with trade within the continent growing by 5.4 percent in 2024 to reach US$206.6 billion, according to the Africa in Figures 2025 report by Afreximbank.

Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA), emphasized that moving the agreement beyond a legal framework requires significant investment in industrial development, trade corridors, and small businesses. Mene noted that while 50 countries have ratified the agreement and 26 are actively trading, reducing tariffs alone is insufficient without adequate financing for cross-border projects.

Key drivers for this economic integration include the Intra-African Trade Fair (IATF), which generated US$50 billion in trade and investment deals during its fourth edition in Algiers. To address remaining constraints such as limited market intelligence and restricted access to trade finance, the AfCFTA Secretariat is partnering with Afreximbank to utilize tools like the Pan-African Payment and Settlement System and the AfCFTA Adjustment Fund.