3 min read
Kehinde
Manager, Product Marketing
Despite the promise of AfCFTA, African businesses continue to face systemic challenges that limit their ability to trade efficiently across borders.
The African Continental Free Trade Area (AfCFTA) was designed to create a single, liberalized market for goods and services across 55 countries unlocking opportunities for scale, industrialization, and intra-African trade.
But as we explored in our earlier article on Understanding African Continental Free Trade Area (AfCFTA), the agreement is only the foundation. The reality on the ground reveals that many businesses still encounter barriers that prevent them from fully realizing the benefits of AfCFTA.
In this article, we’ll highlight some of the most pressing barriers to intra-African trade and more importantly, explore practical ways to overcome them.
Non-Tariff Barriers (NTBs)
Even with reduced tariffs, African traders are still facing cumbersome customs procedures, complex documentation, and hidden fees that delay goods at borders.
Infrastructure Gaps
Poor transport systems, underdeveloped ports, and limited logistics networks increase the cost and time of moving goods across the continent.
Fragmented Payment Systems
Lack of interoperable payment platforms means traders often rely on expensive third-party intermediaries or foreign currencies.
Limited Market Information & Trust
Many SMEs lack visibility into demand across African markets or cannot verify potential buyers and suppliers. This leads to missed opportunities and high perceived risks.
Policy Inconsistencies
Different countries have overlapping, sometimes conflicting trade policies, which discourages cross-border expansion.
Regional Logistics Partnerships
Investing in regional distribution hubs and collaborating with logistics providers can reduce delays and improve access to new markets.
Harmonizing Payment Systems
Adoption of the Pan-African Payment and Settlement System (PAPSS) and fintech-led solutions can cut currency conversion costs and accelerate payments.
Capacity Building for SMEs
Training exporters and suppliers on compliance, market research, and digital tools helps them compete effectively under AfCFTA.
Policy Alignment & Advocacy
Governments must collaborate to streamline trade regulations and invest in trade-enabling infrastructure. Private sector players should push for policies that unlock trade potential.
Digital Trade Facilitation
Platforms like Brydge are helping businesses source materials, verify partners, make secure payments, and track shipments all digitally. This reduces friction and builds trust.
AfCFTA is a powerful framework that, if well executed, can transform Africa’s trade landscape. Businesses that adopt digital solutions, forge cross-border partnerships, and invest in building trust will be the first to unlock its benefits.
The barriers are real, but so are the opportunities. With deliberate action, Africa can move from a continent trading with itself at just 16–18% of total exports, to one where intra-African trade is the engine of growth and prosperity.
