The Executive Consultant at the Africa Trade Capacity Centre, Dr. Fareed Arthur, has underscored that strategic trade partnerships are the engine for realising a truly integrated and borderless African market under the African Continental Free Trade Area (AfCFTA).
Speaking at the Africa Business Festival, which is The CEO’s Connect Summit, organised by Enzee Events in partnership with the Canada-Ghana Chamber of Commerce (CanCham), Dr. Arthur charged businesses, particularly small- and medium-scale enterprises (SMEs), to forge stronger regional partnerships as a deliberate strategy to expand intra-African trade.
“To thrive in a borderless market, African businesses must prioritise regional partnerships, align with cross-continental regulatory standards, and leverage their competitive advantages,” he said.
AfCFTA as a Game-Changer
Addressing the theme “Thriving in a Borderless African Market”, Dr. Arthur highlighted both opportunities and challenges within the AfCFTA framework.
He noted that while the African Union historically functioned largely as a political union, AfCFTA, launched in 2021 represents a transformational shift toward economic integration.
“Though just four years old, AfCFTA has already laid a robust foundation for economic transformation across the continent. Africa has no option but to become borderless, and over time, all 54 countries will participate fully,” he emphasised.
Missed Opportunities in Global Trade
Dr. Arthur lamented that Africa remains predominantly a supplier of raw materials to the world while losing out on value addition.
He cited the cocoa industry as a striking example: although Africa dominates production, the continent captures only a fraction of the US$150 billion global cocoa market.
“Every mobile phone has a component sourced from Africa, yet none are manufactured here. This is a missed opportunity,” he observed.
He argued that reducing dependency on external markets and increasing intra-African trade will be critical to transforming Africa from a political grouping into a powerful economic bloc.
Value Addition and Industrialisation
According to Dr. Arthur, value addition remains the key to Africa reclaiming its rightful place in the global value chain.
He pointed to Ghana’s automotive industry, where international car manufacturers assemble vehicles under a national auto policy geared toward regional exports, as an example of how partnerships can support industrialisation.
He also stressed the importance of trade in services, particularly in the digital economy, where Africa’s youthful population is increasingly making strides.
Role of Afreximbank and PAPSS
Commending the African Export-Import Bank (Afreximbank), Dr. Arthur highlighted the Pan-African Payment and Settlement System (PAPSS), which eliminates the need for third-party currencies in intra-African transactions.
“Already, 11 banks in Ghana are integrated into PAPSS, positioning the country as a gateway for cross-border business under AfCFTA,” he said.
Overcoming Trade Barriers
Despite progress, Dr. Arthur acknowledged persistent challenges such as regulatory inconsistencies and multiple border checks that slow down the movement of goods and services. He called for harmonised standards and accessible trade information to better guide business decisions.
“Understanding markets and having access to reliable data is crucial. Differences in something as simple as shoe sizes between regions show why Africa must establish uniform benchmarks for goods and services,” he noted.
Turning Challenges into Opportunities
Dr. Arthur encouraged entrepreneurs to view Africa’s trade challenges as opportunities for innovation and growth.
“Our opportunities are in the very challenges we face, whether in goods or services. Seek information, build capacity in key industries, and use your expertise to drive change,” he said.
