World
Experts Speak as African Continental Free Trade Area Agreement Takes Effect
The African Continental Free Trade Area agreement (AfCFTA) came into force on May 30, 2019. In April 2019, Gambia ratified the agreement, bringing the total number of African Union (AU) member state ratifications to 22, the minimum threshold for AfCFTA’s implementation. In the last month, the required number of endorsements was received by the AU and the agreement is now in force.
According to Virusha Subban, Partner specialising in Customs and Trade at Baker McKenzie in Johannesburg “AfCFTA aims to eliminate tariffs on intra-African trade, reduce unemployment, increase infrastructure development and create a more competitive, yet sustainable environment for cross-border trade.”
Subban explains that AfCFTA is a treaty between consenting countries whereby a free trade area is constituted which allows member countries to conduct trade with each other without tariffs or other hindrances. Currently, the agreement has 52 signoraties, out of 55 member states, which make up a market of more than 1.2 billion people, with a combined GDP of more than $ 3.4 trillion.
Itumeleng Mukhovha, Associate in Corporate/M&A Practice, notes, “Expanded international and regional trade flows have played a significant role in Africa’s rapid growth in recent years. The AfCFTA marks another milestone toward deeper regional integration and the quest for stronger and sustained growth. As a matter of fact, the AfCFTA is expected to provide businesses across Africa with many opportunities and in so doing, it complies with Agenda 2063: The Africa We Want. Agenda 2063 is an AU goal aimed at socio-economic transformation.
In addition, the Economic Commission for Africa (ECA) estimates that intra-African trade should increase by 52.3%, with the elimination of import tariffs and add $70 billion to the continent’s GDP by 2040.
Currently, trading outside Africa is subject to lower tariffs than the 6.1% tariff imposed on intra-Africa trade. The scope of the AfCFTA will have widespread changes – businesses, traders and consumers in Africa will no longer be constrained by tariffs; and mechanisms will be put in place to assist traders that are burdened by non-tariff barriers.”
In January 2012, the AU decided to adopt a free trade area covering the African continent, which they hoped to have in place by 2017. Fast track to March 2018, where a significant decision was taken towards the fulfilment of the AU’s mandate of a continental free trade area – 44 countries indicated their commitment through signing the agreement in Kigali, Rwanda. Two further agreements were also presented at the Kigali Summit, namely the Kigali Declaration and the Protocol to the Treaty Establishing the African Economic Community relating to the Free Movement of Persons, the Right to Residence and the Right to Establishment.
“Two of Africa’s leading economies, Nigeria and South Africa, however, did not sign the agreement in Kigali in 2018. Both countries had indicated support of the agreement before the Summit, however, the reasons for their reservations took two different routes,” Mukhovka says.
“Nigeria was largely considered as a supporter of the free trade area and was expected to play a major role during the negotiations at the Kigali Summit. However, uproar by local businesses, policymakers and lobbyists within Nigeria led President Buhari to cancel his trip to Kigali in order to respond to complaints that their interests were not being accommodated.
“In July 2018, South Africa, along with five other countries, became party to AfCFTA, joining the-then 44 existing signoraties to the agreement. The African Union Summit which took place in July 2018, saw South Africa, Namibia, Sierra Leone, Lesotho and Burundi take the total signatories to 49 of the 55 member states. In February 2019, during the 32nd AU Heads of State and Government Summit in Addis Ababa, Ethiopia, Botswana, Zambia and Guinea Bissau raised the number of countries to have signed the agreement to 52.
“However, Africa’s largest and most populous economy, Nigeria, is the most notable non-signatory of the AfCFTA.
“Although the Nigerian government was initially concerned about opening up its borders and turning the country into a receptacle of finished goods, the Minister of Industry, Trade and Investment, Okechukwu Enelamah, recently confirmed that Nigeria will sign the AfCFTA as soon as President Muhammadu Bihari approves an impact-assessment report,” says Mukhovha.
When he signed the agreement last year, President Ramaphosa said that it would create many opportunities and benefits for South Africa and moreover, would grow and diversify the South African economy through the reduction of inequality and unemployment. Ramaphosa indicated that South Africa’s position as a major supplier of goods and services to the continent would also be strengthened by the agreement.
“Through the AfCFTA, South Africa is also expected to be benefit from an increase in foreign direct investment, gain access to a broader range of expertise and the possibility of lower governmental spending.
“This is because, through its implementation, the subsidisation on local industry segments might be removed due to advantageous outcomes of the agreement. However, two disadvantages arising from the agreement include the potential increase in the outsourcing of jobs as a result of the significantly reduced tariffs and the possible degradation of natural resources,” says Mukhovha.
Mukhovha explains further that extractive commodities including oil, minerals and metals, have traditionally been the continent’s leading source of exports, accounting for 76% of exports outside Africa.
“Due to the volatile nature of these extractive exports, financial assurance is not certain. It is hoped that AfCFTA will encourage a shift away from reliance on extractive exports towards more sustainable trade in Africa. Moreover, encouraging more labour-intensive trade such as manufacturing and agricultural goods, will increase employment on the continent,” she says.
Subban says, “AfCFTA will not only have an impact on the trade of goods and services in Africa, but through the implementation of Phase II, it will also see an extension of the disciplines covering investments, competition and intellectual property. According to the AU, finalisation on the supporting instruments to facilitate the launch of the operational phase on AfCFTA will begin in June 2019 at an extra-ordinary head of state and government summit.
“Once all 55 AU member states have joined AfCFTA, it will become the largest free trade zone and the largest customs union in the world, with many more African products and services becoming freely available in other countries in the African Union,” Subban adds.
By Kestér Kenn Klomegâh
In an interview, Senator Mushahid Hussain, President of Pakistan-Africa Institute for Development and Research (PAIDR), explicitly offers a few important insights into the US-Israeli war on Iran and its implications for BRICS+ and Africa. Here are the interview excerpts:
What’s your interpretation of the US-Israel war on Iran, in the context of developments in the Middle East region?
The US-Israel illegal and unwarranted war on Iran was spearheaded by [Benjamin] Netanyahu (Prime Minister of Israel) and actively supported by [Donald] Trump (President of USA) as a Joint Operation with three fundamental goals: a) decimate the Islamic Revolutionary Regime; b) reshape the Middle East as part of Zionism’s ‘Greater Israel’ Project; c) preclude any possibility of establishing a Palestinian State with Jerusalem as its capital.
What is your assessment of Iran’s joining BRICS+ in 2025, China’s and Russia’s roles as members of this association, in this US-Israel war with Iran?
China and Russia have played, by and large, a low-key diplomatic role in supporting Iran but without any active political initiatives. BRICS is divided from within, as India is keen to curry favour with the USA and avoids close association with BRICS since the time that Trump attacked BRICS last year. But China & Russia are clear political beneficiaries of the war as American prestige is at an all-time low, having got entangled in an unwinnable war, resulting in weakening of the US ‘sole superpower’ image.
As an Asian expert, how would you characterise Africa’s reactions? And do you think that reactions were objectively authentic, basing perspectives broadly on Arab and Middle East contributions to Africa’s development?
Africa’s reactions to the war are primarily through the prism of the Global South, viewing Iran as resisting American-Israeli hegemonic designs, as, for example, manifested in two examples: South Africa’s rejection of American pressures to wean South Africa away from its support for Iran. Plus, Somalia joined Pakistan and China in supporting the Russian resolution in the UN Security Council seeking an immediate ceasefire and negotiations to halt the War, despite strident Western/US opposition to the Russian resolution.
By Adedapo Adesanya
The Director-General (DG) of the World Trade Organisation (WTO), Mrs Ngozi Okonjo-Iweala, has said the global trading system is experiencing the worst disruptions in the past 80 years.
The trade body chief warned about the consequences as the WTO ministerial conference opened Thursday in Cameroon.
“The world order and the multilateral system we know has irrevocably changed,” she said, adding: “We cannot deny the scale of the problems confronting the world today.”
The organisation’s 166 members appear deeply divided as trade ministers gather in the Cameroonian capital for the WTO’s top conference, amid global economic turmoil linked to the Middle East war.
Over four days in Yaounde, WTO members will try to revitalise an institution weakened by geopolitical tensions, stalled negotiations, and rising protectionism — against the backdrop of the war in the Middle East, which poses a serious threat to international trade.
“The scale of the problems confronting the world today, even before the conflict in the Gulf, destabilised trade in energy, fertiliser and food,” Mrs Okonjo-Iweala said.
“National governments and international institutions alike have been struggling to navigate rising geopolitical tensions, intensifying climate pressures, and rapid technological change.
“Accompanying these shifts has been an increasingly loud questioning of multilateralism,” she added.
Mrs Okonjo-Iweala said these disruptions were just one symptom of broader upheavals shaking the international order created after World War II to prevent a repeat of the disasters of the first half of the 20th century.
“It feels appropriate that at the moment when the world is in turmoil with conflict in the Middle East, Sudan, Ukraine, and elsewhere, at this time of great disruption and uncertainty, we have gathered in Africa to discuss the road ahead for the global trading system,” she said.
“Africa is the continent of the future.”
WTO ministerial conferences are typically held every two years. The current edition in Yaounde is the second to be held in Africa, after Nairobi (Kenya) in 2015.
By Kestér Kenn Klomegâh
The United States-Israeli war in the Islamic Republic of Iran is shattering Africa’s economic landscape and leaving emotional devastation. Europe is fractured, but completely. France has taken the initiative to create a platform in Nairobi, the capital of Kenya, located in East Africa. More than 2,500 corporate executives from across the continent, spanning 55 African countries, would take up the challenge during a two-day in-depth discussion on the existential threat of the Middle East conflict. Participating business leaders’ engagement over geopolitics, finding new paths to massive new investment, would be the central theme, while expressing commitment to forge new mechanisms for economic cooperation between Africa and France. The high-ranking guests from regional economic blocs are expected to join, teaming up to share practical thoughts and build awareness beyond the current Middle East conflicts and their impact on Europe and Africa.
The common goal: new perspectives on innovation, new business directions in the context of geopolitical threats. Based on Africa’s untapped natural resources and human capital, communicating clearly with business executives and political leaders, high-ranking speakers plan to dissect and design the future. Strengthening Africa’s and France’s economic cooperation forms the irreversible target and will ultimately be incorporated into the conference declaration. Cautious reflection indicated that the relationship between Africa and France is still pragmatic, as both agreed to renew and thoroughly review the existing economic potentials at the two-day conference in Nairobi.
Experts and Conference coordinators told this article’s author that the French government and business circles involved in trade and economic cooperation with African countries were invited to participate, lay out their comprehensive business architecture. Africa and France will focus on the developing manufacturing and extractive industries, setting up special economic zones, energy and transport infrastructure, digitalisation, and the agro-industrial complex—education and training in the sphere of entrepreneurship.
France has already worked out a financial mechanism to support joint business across Africa, while Africa’s financial institutions pledge their commitment, plan corporate strategies and support for joint investments in the localisation of production chains in Africa, which covers both agricultural and mineral processing.
President William Ruto and French President Emmanuel Macron both acknowledged that the strategic pathway should focus on unlocking Africa’s potential, driving sustainable industrialisation, and targeting economic growth across Africa. Harnessing the untapped resources and utilising the huge human resources is France’s priority in consolidating the current bilateral engagement and collaboration.
In a statement, President Ruto underlined tthat he summit reflects a shared commitment to strengthening bilateral ties and deepening multilateral cooperation to advance global goals. The agenda will focus on key areas, including reform of the international financial architecture, energy transition, green industrialisation, the blue economy and connectivity, artificial intelligence, sustainable agriculture, and health. It will spotlight the role of young entrepreneurs, civil society, and international organisations in shaping solutions to pressing global and regional challenges. The May summit is described as part of the renewal of relations between France and Africa, emphasising genuine partnerships and shared progress.
The agenda will focus on key areas, including reform of the international financial architecture, energy transition, green industrialisation, the blue economy and connectivity, artificial intelligence, sustainable agriculture, and health.
In addition to the May summit by France, the European Union countries are increasingly strong economic partners for many African countries. It therefore beholds African leaders and business people to necessarily explore available possibilities and windows that have been opened. The EU has unveiled €300 billion ($340 billion) alternative to China’s Belt and Road initiative — an investment programme the bloc claims will create links, not dependencies.
In an official document, it said the European Commission is examining:
– Support AfCFTA implementation and the green transition;
– Improve trade and investment climate between the EU and Africa;
– Reinforce high-level public-private dialogue;
– Enhance long-term dialogue structures between the EU and African Business Associations;
– Unlock new business and investment opportunities, including in the areas of manufacturing and agro processing, as well as regional and continental value chains development.
It is further included in the joint communication of the European Commission (EC) entitled “Toward a Comprehensive Strategy with Africa”, which sets forth what the EU plans with Africa. The Joint EU-Africa Strategy takes into cognisance the most common interests such as climate change, global security and the achievement of the United Nations Sustainable Development Goals (SDGs).
Just as China, India and the United States, so also France, and other European countries are exploring emerging opportunities offered by the African Continental Free Trade Area (AfCFTA), which provides a unique and valuable access to an integrated African market of 1.5 billion people. In practical reality, it aims at creating a continental market for goods and services, with free movement of business people and investments in Africa.
Looking ahead, France intends to capitalise on Africa’s most transformative economic sectors and make strategic moves by collaborating, as a mutual partnership remains dynamic and adaptable. Despite growing geopolitical tensions, France’s approach and its long-standing ties still offer an alternative partnership model that many African leaders find very appealing.
The challenge for the future will be to ensure these ties evolve in ways that serve Africa’s development needs, while navigating the increasingly complex global politics. As Africa is indiscriminately open for business, on May 11-12, 2026, African and French Heads of State and Government meet together to chart a new path for innovation, growth, and cooperation. Kenya will hold this investment summit for France to position Africa as a key partner in global innovation and economic development while strengthening bilateral ties with France and advancing Africa’s collective agenda on the international stage.
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