Despite having some of the fastest-growing economies in the world, with a combined population of well over 1 billion people, Africa still trades predominantly with the rest of the world rather than with itself. Some estimates place intra-African trade at only about 15%. This is a strikingly low figure compared to other regions, such as Europe and Asia, which boast high levels of intra-regional trade supported by strong regional value chains. By global standards, African trade remains relatively undiversified, with a heavy emphasis on exports of bulk commodities and imports of finished goods from other parts of the world. In general, therefore, value addition does not begin at home.
However, with the African Continental Free Trade Area (AfCFTA) moving from its negotiation phase into operational reality, African countries now have an opportunity to reimagine and reshape their trade relations on the continent. The AfCFTA, the centrepiece of the African Union’s Agenda 2063, has laid the foundation for greater intra-African trade and more sustainable socio-economic development through a combination of reduced tariffs, harmonised trade regulations and increased innovation-led investment.
How Africa can use the AfCFTA as a vehicle to unlock its considerable trade potential is the focus of a new book titled Increasing Intra-African Trade: Can the African Continental Free Trade Area Be the Game Changer? This multi-author volume – edited by Prof. Wilma Viviers (North-West University, South Africa), Dr Martin Cameron (Trade Advisory (Pty) Ltd, South Africa) and Prof. Leila Baghdadi (University of Tunis, Tunisia) – examines how Africa can make the fundamental shift from fragmented economic and trade activities towards a more integrated approach, with the AfCFTA providing a valuable lever in this process.
The book moves beyond aspiration by demonstrating how stronger intra-African trade can become a reality. It shows how realistic, untapped export opportunities can be identified, drawing on case studies from Rwanda, Cameroon, South Africa and Tunisia, among others. It also outlines strategies to bolster trade on the continent – particularly between North and South – through the crucial pillars of export diversification and industrialisation, which are cornerstones of inclusive growth and development.
While the book presents a compelling vision of a continent brimming with opportunity, it does not attempt to downplay Africa’s many challenges – from infrastructure deficits and weak institutions to industrial asymmetries and precarious fiscal positions – all of which add to the cost and reduce the attractiveness of trading on the continent. These shortcomings are visible in congested ports, inefficient customs procedures, thin manufacturing bases and competing commitments to different regional economic groupings.
A common theme running through the book is the need for African countries to acknowledge and actively address entrenched trade barriers in order to move forward economically. To this end, the final chapter sets out a number of strategies aimed at ensuring that the AfCFTA lives up to expectations and ushers Africa into a new era. The AfCFTA has the potential to serve as a continental integration framework and a catalyst for more diversified production and trade.
