This archive report was first published on 6 July 2019.
On July 7, 2019, the African Continental Free Trade Area (AfCFTA) officially launched in Niamey, Niger, marking a significant milestone in the continent's economic integration.
With over 60 years of independence, Africa's trade flows remain tied to colonial structures, with only 17% of intra-African goods directly traded, compared to 59% and 69% for Asia and Europe respectively.
The AfCFTA aims to boost intra-African trade by more than half by dropping 90% of tariffs on goods and services originating from member countries.
However, the deal's success hinges on addressing the continent's infrastructure gaps, including physical infrastructure, barriers to investment, and financial policies.
The African Development Bank estimates that the continent needs nearly $130 billion of annual investment in infrastructure to bridge the current gap.
Despite the challenges, the African Union Commission has a tough task ahead to keep countries focused on the benefits and practical solutions to some of the concerns raised by member states.
Fast-tracking the integration of Customs and trade information systems, adopting common quality standards, and opening up the skies could partially address fears and bring the laggards at par with their more established counterparts.
