African economic and trade integration initiatives

The World Bank, in collaboration with the African Union Commission and the United Nations Economic Commission for Africa, has proposed a plan to reduce commercial friction and establish regional production hubs across Africa. The initiative, detailed in a report titled ‘Integrating Africa: From Threads to Hubs’, suggests that tariff liberalization under the African Continental Free Trade Area (AfCFTA) is insufficient on its own. Instead, progress requires interoperability across customs, transport, standards, payments, services, energy, and data.

Subsequent analysis by the World Bank and the Agence française de développement (AFD) identifies that high domestic trade costs—originating from customs delays, inefficient logistics, fragmented regulations, and inadequate infrastructure—are the primary obstacles to integration, accounting for approximately 60% of intra-continental trade costs.

To address these issues, experts recommend prioritizing “deep” trade agreements that establish enforceable rules for technical standards and investment. The reports suggest that liberalizing services such as telecommunications and financial services could increase intra-AfCFTA services trade by 60–64% by 2035. Additionally, the use of “coalitions of the willing” is proposed to pilot regional public goods, including shared energy grids and digital payment platforms.