Online Reporter
Nqobile Bhebhe
AFRICA is uniquely positioned to boost intra-regional trade and accelerate economic diversification by taking advantage of shifting global trade dynamics, particularly ongoing trade wars, through the full implementation of the African Continental Free Trade Area (AfCFTA) and other long-standing regional frameworks, the African Development Bank (AfDB) has said.
The AfCFTA, a flagship project under the African Union’s Agenda 2063, brings together a market of about 1,3 billion people and a combined Gross Domestic Product (GDP) of approximately US$3,4 trillion.
Operationalised in January 2021, the agreement aims to reduce tariffs on 90 percent of goods traded among member states over 10 years. It also seeks to streamline customs procedures, eliminate bureaucratic hurdles, and harmonise technical standards to enable the seamless movement of goods across borders.
Zimbabwe is among the signatories to the AfCFTA, which is projected to increase intra-African trade by 53 percent by 2025, potentially creating up to 30 million jobs and lifting an equal number of people out of poverty.
In its 2025 African Economic Outlook (AEO) report, launched last week during the AfDB annual meetings in Abidjan, the bank highlighted that the intensifying global trade tensions have exposed the vulnerability of over-reliance on foreign trade and global value chains. However, these developments also present a strategic opportunity for African economies.
“To mitigate the impact, African countries should diversify their export markets, redirecting trade towards intraregional markets within Africa, and to other potential trade partners in Asia, Canada, Latin America, the Middle East, the European Union, and other European countries,” said the report.
The Bank emphasised that the growing trade wars should act as a catalyst for African countries to fully implement the AfCFTA and activate other regional trade agreements by removing both tariff and non-tariff barriers.
“The growing trade wars provide an incentive for African countries to fully implement the AfCFTA Agreement and operationalise other long-standing agreements to eliminate regional trade and non-trade barriers and accelerate economic diversification,” said the report.
It further urged African governments to rethink their trade strategies and external relations in favour of deeper regional integration.
“They need to deepen economic diplomacy and implement protocols on the free movement of goods and people within the continent. This will require effective policy co-ordination among countries to accelerate the benefits of trade with no regional partners while mitigating the risk of dumping, a scenario where Africa becomes a market for large volumes of imports diverted from other countries,” reads the report.
The AfDB’s call adds momentum to ongoing continental efforts to make AfCFTA a transformative tool for industrialisation, economic resilience and sustainable development.
