A reduction in customs duties and non-tariff barriers could boost intra-African trade. African leaders are emphasising state involvement and investment in infrastructure to promote economic integration. Diversification of exports, sources of access to the sea and investments are crucial to boosting continental trade. The African Union’s Agenda 2063 envisages a significant increase in intra-African trade, with specific targets for different sectors such as 26% within the AfCFTA, 2.9% in the services sector, 17.8% for agri-food, 58.4% contribution from the industrial fabric and 20.9% for energy and mining.
A 90% reduction in customs duties on goods and services and a 50% reduction in non-tariff barriers could increase intra-African trade by 33% by 2026. With the implementation of the African Continental Free Trade Area, trade between countries on the continent has increased by more than 5% between 2021 and 2023. Galvanised by these figures, African leaders are advocating greater involvement by governments in promoting intra-African trade.
« The main determinant of our community of destiny is the consolidation of our solidarity. Well mobilised and anchored in the fervour of our regional conscience, this active solidarity, which transcends our extremely national interests, will serve as a launching pad for the Central Africa that we wish to see united, at peace and developed ».
Teodoro NGUEMA OBIANG MBASOGO, President of the Economic Community of Central African States (ECCAS) – Equatorial Guinea
For the African Union and its partners, infrastructure is the basis for successful economic integration on the continent. Africa accounts for less than 5% of the world’s energy mix, and the economic losses associated with power cuts are estimated at between 1% and 2% of a country’s GDP. Infrastructure development in Africa requires investment of between 130 and 170 billion dollars a year. Transport in Africa currently costs 68% more than on other continents, due to logistical challenges in the road, rail, sea and air sectors. Bilateral, multilateral and regional initiatives are multiplying to alleviate these problems.
« Building schools and certain infrastructures should no longer take a long time, and we need to pool the experience of different African countries. The best practices in Nigeria can be applied here in Senegal… ».
Macky SALL, President of the Republic – Senegal
The challenge of increasing the share of intra-African trade in the continent’s development rests on one major issue: diversification. Diversifying the basket of exports and promoting trade in services, diversifying sources of access to the sea for 16 landlocked African countries, diversifying sources of investment to boost continental trade.
« The Alliance of Sahel States that we have set up with Burkina Faso and Niger includes among its objectives the promotion of economic development through the establishment of structuring infrastructures. Today, we believe that if we are to create development and keep our young people busy, we need to put infrastructure and trade at the heart of our concerns ».
Abdoulaye DIOP, Minister of Foreign Affairs – Mali
In the African Union’s Agenda 2063, the continent forecasts a 26% share of intra-African trade within the AfCFTA, 2.9% in the services sector, 17.8% for agri-food, 58.4% contribution from the industrial fabric and 20.9% for energy and mining