5 min read
Kehinde
Manager, Product Marketing
For decades, the narrative of African commerce has been one of profound paradox. Africa has many resources, a growing population, and strong business potential. Yet, it trades more with distant continents than with nearby countries.
This fragmentation isn't new. It's a deep-rooted problem that has limited growth, hindered industrialization, and pushed the continent to the sidelines in the global economy.
Before the African Continental Free Trade Area (AfCFTA), formal intra-African trade accounted for about 15% to 18% of the continent's total trade.
This figure stands in stark contrast to the deeply integrated economic blocs of Europe, where intra-regional trade constitutes 68.1% of the total, Asia at 59.4%, and the Americas at 55.0%.
This disparity represents a monumental opportunity cost, a failure to harness the power of a vast and proximate market.
Africa’s weak trade performance is rooted in history. Many countries still follow a colonial-era economic model built for exporting raw materials and importing finished goods.
As a result, infrastructure like roads and railways mainly link interior regions to seaports for overseas trade, not to neighboring African markets. This has stifled intra-African trade and reduced the continent’s share of global trade from about 5% after independence to under 3% today.
Africa needs a new approach. Its growing populations and fragile economies depend on unstable global prices.
The AfCFTA is Africa's largest effort to shift from fragmentation and reliance to unity, self-sufficiency, and shared growth.
The African Continental Free Trade Area (AfCFTA) is a flagship initiative of the African Union’s Agenda 2063. It started trading on January 1, 2021. It aims to create one borderless market for goods and services in 54 African countries.
The agreement aims to lower tariffs, eliminate non-tariff barriers, and make customs processes simpler across Africa. With 54 of the 55 African Union member states on board, it’s the largest free trade area in the world based on the number of countries involved.
This bloc includes 1.3 billion people and has a total GDP of about US$3.4 trillion.
The political momentum behind the agreement has never been experienced in the history of African integration efforts. As of early 2025, 54 of the 55 AU member states have signed the AfCFTA agreement, with Eritrea being the sole non-signatory.
AfCFTA's core purpose is to boost intra-African trade by removing key barriers. Here’s what it does in practice:
Lowering Trade Barriers
The most immediate and tangible goal of the AfCFTA is the creation of a liberalised market for goods within the continent. The Protocol on Trade in Goods establishes the framework for dismantling the tariff and non-tariff barriers that have long fragmented the continent for a long time.
The main focus of this protocol is a step-by-step plan for tariff liberalization. It follows a "90-7-3" model: 90% of Tariff Lines are for Non-Sensitive Goods, 7% are for Sensitive Products, and 3% are on the Exclusion List.
Robust trade facilitation measures
This includes simplifying and harmonizing customs procedures, reducing red tape at borders, and eliminating costly Non-Tariff Barriers (NTBs).Implementing these processes is expected to deliver the majority of the economic benefits of around $292 billion out of the total $450 billion in potential income gains.
Introduction and Implementation of Rules of Origin (RoO)
Rules of Origin (RoO) are key to any free trade agreement. These technical criteria help determine the "economic nationality" of a product, which ensures that the agreement grants preferential tariffs only to goods that are genuinely produced within the free trade area.
Protocols on Services, Investment, and Movement
The AfCFTA isn’t about trading physical products. Its vision encompasses an integrated economic community, which necessitates the liberalisation of services, the facilitation of investment, and the unrestricted movement of capital and people within the continent.
AfCFTA is a game changer for African exporters, manufacturers, and service providers. Here’s why it matters:
Despite its promise, AfCFTA faces hurdles:
For AfCFTA to achieve its full potential, governments must invest in transport, digital trade infrastructure, and harmonized regulatory frameworks.
How Digital Trade Platforms Can Help
While governments work on policy and infrastructure, digital platforms like Brydge are already helping African businesses take advantage of AfCFTA today.
Brydge is an all-in-one trade facilitation platform designed for intra-African trade. It helps businesses:
Brydge acts as a trusted Merchant of Record, simplifying trade across borders without requiring businesses to set up local entities in every country with which they deal.
The African Continental Free Trade Area is the biggest change in Africa's economy since independence.
It represents a decisive break from a past defined by fragmentation and external dependence and a bold stride towards a future of integration, self-reliance, and shared prosperity.
AfCFTA is more than a trade pact, it’s Africa’s chance to reimagine what commerce can look like within the continent. But implementation won’t be automatic. It requires intentional efforts from governments, the private sector, and trade enablers.
Platforms like Brydge are already showing what’s possible when digital infrastructure meets real trade needs. For African businesses ready to tap into new markets, the time to act is now.
AfCFTA is here. And with the right tools, the future of African trade looks smarter, faster, and more connected than ever.
