AfCFTA accelerates intra-African trade
African countries have made a major leap following the ratification of the African Continental Free Trade Area (AfCFTA) by 49 countries and the creation of a single market of 1.4 billion people with a combined GDP of over $3.4 trillion.
AfCFTA Secretary General Wamkele Mene hailed the progress as "unprecedented," saying the landmark agreement is already unlocking economic opportunities and driving a new era of intra-African trade.
Speaking during the 32nd African Export-Import Bank, or Afreximbank, Annual Meetings in Cairo, Egypt, he stated that the issuance of nearly 3,000 Certificates of Origin is already shifting trade patterns.
"This has allowed small and medium-sized enterprises and informal traders to access preferential tariffs within the AfCFTA framework," he said in a press statement released on Tuesday.
Citing the case of Nigeria, Mene noted that recent data from the West African nation reveals that Africa has now become the country's largest export destination, a marked departure from its traditional reliance on non-African markets.
Nigeria's Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the country has established a central coordinating committee to align government agencies and ensure a structured approach to the AfCFTA rollout.
"Nigeria is also expanding trade corridors, including new air cargo partnerships with Uganda Airlines. A mapping of 713 export-ready SMEs is underway, and a partnership with the Africa Trade and Distribution Company aims to revive the Nigerian Commodities Exchange," she stated.
The Minister said that the efforts are designed to reduce post-harvest losses, improve logistics and strengthen market intelligence for Nigerian exporters.
Former Prime Minister of Guinea Komara Kabine stressed that physical infrastructure—such as roads, ports and digital backbones—remains essential to connect African markets and unlock the full potential of the AfCFTA.
He also called for greater education of grassroots traders and faster adoption of digital tools like Pan-African Payment and Settlement System, or PAPSS, by commercial banks.
With the support of Afreximbank, Mene emphasized that AfCFTA has spearheaded several critical initiatives designed to make intra-African trade smoother, more affordable and more sustainable.
"The launch of PAPSS, which allows for cross-border payments in local currencies, is expected to save African businesses up to $5 billion annually by reducing dependence on external currencies like the US dollar," he said.
Mene also stated that Afreximbank has committed $10 billion to the AfCFTA Adjustment Fund, which helps member states implement tariff reforms without jeopardizing fiscal stability.
Another $1 billion has been set aside for a new Automotive Industry Facility aimed at boosting regional vehicle manufacturing and creating continental supply chains.
"An upcoming Transit Guarantee mechanism, currently in development, will make cross-border cargo movement more efficient by reducing delays at customs checkpoints," Mene added.
Meanwhile, Afreximbank's Director of Trade Facilitation and Investment Promotion, Dr Gainmore Zanamwe, highlighted the bank's growing focus on digital infrastructure to include the Africa Trade Gateway platform and "digital borders" pilot projects in Nigeria and Togo, which aim to reduce delays, enhance transparency and improve data-sharing across national boundaries.
