Keypoints:
- African leaders push to fast-track AfCFTA amid US tariff hike fears
- Only 24 nations are actively trading under the pact
- Infrastructure gaps and currency issues block progress
AFRICAN leaders are stepping up pressure to fast-track the African Continental Free Trade Area (AfCFTA), warning that punitive tariffs from the United States are threatening jobs, industries, and long-term growth prospects.
Lesotho is already facing tariffs as high as 50 percent under the new policies of returning US President Donald Trump. And with global trade norms shifting fast, African policymakers say the continent must urgently insulate itself from external shocks.
‘We’ve got to accelerate the establishment of our own value chain systems,’ AfCFTA Secretary-General Wamkele Mene told Reuters. ‘The weaponisation of trade policy, investment nationalism — it’s unprecedented. The lesson is clear: we are on our own as a continent.’
AfCFTA stalled despite early promise
The AfCFTA agreement, designed to bring together all 1.4 billion Africans into a single trade bloc, was ratified by 49 countries and launched in 2021. But implementation has lagged badly. Only 24 countries are actively trading under the framework, Mene confirmed.
According to the World Bank, the deal has the potential to boost intra-African exports by 81 percent. Last year’s 12.4 percent jump in intra-African trade to $208bn, reported by Afreximbank, signals what’s possible if momentum is restored.
Still, progress remains patchy. ‘Implementation has been inconsistent,’ said Raheema Parker of Oxford Economics. ‘Weak governance, informal trade, and limited institutional capacity — especially in smaller economies — are major obstacles.’
Infrastructure holding back trade flows
A major constraint to AfCFTA’s success is Africa’s chronic infrastructure gap. Since 2020, the African Development Bank and Afreximbank have together invested $65bn in transport and logistics projects. But that’s still dwarfed by the estimated $100bn-plus needed annually to close the gap.
‘Without hardened bridges and faster rail links, AfCFTA will remain a paper promise,’ warned Standard Bank CEO Bill Blackie.
Beyond roads and rails, customs delays and excessive paperwork also drag down efficiency. Chad’s former finance minister Abbas Mahamat Tolli put it bluntly: ‘We need to diminish all the commercial barriers.’
Dollar dependence raises cost of trade
Currency issues are also under scrutiny. Although over 40 currencies are used across the continent, nearly two-thirds of all cross-border payments still rely on US dollar corridors. This adds cost and volatility, especially during economic shocks.
Afreximbank is calling for a shift to local-currency payments. ‘Local-currency corridors must become the norm to slash costs and tame volatility,’ said the bank’s chief economist Yemi Kale.
To that end, the Pan-African Payments and Settlement System (PAPSS), now connecting 16 African central banks, has been launched to reduce reliance on the dollar.
A trade pact worth fighting for
Despite the setbacks, leaders believe AfCFTA remains Africa’s best shot at economic resilience.
‘We have a generational chance to build value chains that keep wealth on the continent, develop competitive industries, and create millions of jobs,’ said Kenyan President William Ruto earlier this month. ‘This is about shaping global trade from a position of strength.’
As G20 finance ministers gather in Durban under South Africa’s presidency, the urgency is palpable. African leaders agree: AfCFTA is no longer optional. It’s the continent’s only route to economic survival — and strength.
