The flagship free-trade pact in Africa, African Continental Free Trade Area (AfCFTA) is moving from negotiation to execution, with its long-term impact now dependent on whether governments and businesses can convert market access into investment, industrialization and jobs, according to Prof. Faizel Ismail, a senior adviser to the AfCFTA.
Speaking on the AfCFTA Podcast, Prof. Ismail said the agreement, now about five years into implementation, has already weathered major shocks, including the Covid-19 pandemic, while establishing a legal and institutional framework that spans 55 countries. He described the AfCFTA as one of the most ambitious trade agreements globally, covering goods, services, dispute settlement and emerging areas such as investment, competition and intellectual property.
The agreement’s central promise is to unify Africa’s fragmented economies into a single market valued at more than $3 trillion, creating the scale needed to attract investors and support industrial development. Prof. Ismail said that scale is essential if African countries are to break out of a long-standing reliance on raw material exports and expand value-added production.
Implementation now centers on opening markets while mobilizing the private sector to trade and invest across borders. Prof. Ismail cited that Intra-African trade accounts for about 15% to 16% of total trade, far below levels seen in Europe or Southeast Asia, reflecting structural constraints such as small domestic markets, limited finance and weak cross-border infrastructure.
According to him, regional value chains are critical to reversing that trend, citing textiles as a sector where Africa produces raw inputs but lacks sufficient processing capacity. He said interest from investors, retailers and industrial park developers suggests momentum is building to address gaps in manufacturing and link African producers to global demand for more sustainable products.
Political commitment to the AfCFTA has been unusually consistent, Prof. Ismail said, arguing that African leaders have steadily expanded the agreement’s scope since it was signed in 2018. While difficult policy choices remain, he said the foundations for a continent-wide market are now largely in place, shifting the focus to delivery.
