More than five years after the launch of the African Continental Free Trade Area (AfCFTA), African businesses continue to face tough barriers when moving goods across borders, a reality that undermines the continent’s vision of creating a single, unified market.
Despite AfCFTA’s promise to boost trade among African nations by reducing tariffs and harmonizing trade rules, non-tariff barriers such as inefficient customs procedures, poor logistics, and weak cross-border payment systems continue to frustrate the movement of goods and services.
In Ghana and its neighboring countries, traders still encounter long delays at border posts, inconsistent documentation requirements, and high transport costs, all of which add to the cost of doing business and reduce competitiveness.
Payment Challenges Undermine Efficiency
A major challenge to smooth intra-African trade is the lack of integrated payment systems. Many businesses still rely on U.S. dollars or euros to settle transactions between African countries, increasing costs and complicating cross-border trade.
While initiatives such as the Pan-African Payment and Settlement System (PAPSS), backed by the African Export-Import Bank (Afreximbank) aim to enable instant transactions in local currencies, adoption has been slow.
Trade analysts note that banks and small traders alike are hesitant to embrace PAPSS fully due to limited awareness, poor connectivity, and concerns over exchange rate stability.
This means that, for most Ghanaian exporters sending goods to countries like Togo, Côte d’Ivoire, or Burkina Faso, cross-border payments remain slow, expensive, and uncertain.
Customs and Border Inefficiencies Persist
Another persistent bottleneck is customs clearance. Although AfCFTA envisions streamlined trade facilitation across borders, inconsistent regulations between member states have made implementation difficult.
Truck drivers and exporters often face multiple checkpoints and manual inspections at borders like Aflao and Paga, leading to delays that can stretch into several days.
In some cases, traders report unofficial fees and differing interpretations of trade rules between customs officers in neighboring countries.
Experts argue that digitalising customs systems and harmonising documentation could significantly ease these challenges.
“We can’t talk about free trade if trucks carrying goods spend hours or days waiting at a single border,” said a Ghanaian freight forwarder in Tema. “Until we align systems and automate customs processes, AfCFTA’s benefits will remain limited.”
Logistics and Infrastructure Shortfalls
Beyond customs, logistics and infrastructure constraints continue to hold back trade. Poor road networks, inadequate warehousing, and limited rail connectivity make the transportation of goods between Ghana and nearby markets expensive and inefficient.
For instance, traders transporting goods from Accra to Lagos or Abidjan must navigate rough terrain and congested borders, often facing unexpected delays.
Transport operators note that while tariffs have been reduced under AfCFTA, transport costs remain among the highest in the world, eating into profit margins and discouraging regional trade.
The absence of harmonised vehicle standards and logistics protocols across African borders adds another layer of complexity. Even regional blocs such as ECOWAS, which has frameworks for free movement and trade have struggled with enforcement, leaving traders to contend with bureaucracy and multiple inspections.
Impact on Ghana’s Trade with Neighbours
These barriers have direct implications for Ghana’s trade performance within West Africa. Although the country exports products like cement, processed foods, textiles, and manufactured goods to its neighbors, such trade still accounts for less than 20% of its total exports.
Local manufacturers say that transport costs and payment difficulties make it easier to export to Europe or Asia than to nearby African markets. “It’s ironic that it’s faster to send goods from Accra to London than from Accra to Lagos,” a Ghanaian exporter lamented.
A Call for Coordinated Action
Experts and policymakers agree that for AfCFTA to deliver on its promise, African governments must move beyond rhetoric and prioritize practical steps toward integration.
This includes harmonizing customs procedures, investing in border infrastructure, and ensuring financial interoperability among central banks.
As Ghana continues to position itself as a trade hub under AfCFTA, analysts argue that addressing these bottlenecks is crucial not only for national growth but also for realizing Africa’s broader dream of a single, connected continental market.
“AfCFTA has created the framework,” one trade economist noted. “Now it’s up to African states to make the framework work by removing the invisible borders that still divide us.”
