Unlocking Africa's Economic Growth: Seven Steps to Fast-Track AfCFTA

Unlocking Africa's Potential: Seven Strategic Steps for AfCFTA

The African Continental Free Trade Area (AfCFTA) holds the promise of a transformative shift in the continent's economic landscape. As leaders gather to bolster their commitment to this agreement, it is imperative we recognize the importance of operationalizing its potential. Insights from former Nigerian Vice-President Oluyemi Osinbajo during the 2025 Adebayo Adedeji Memorial Lecture reveal critical strategies to accelerate AfCFTA's implementation.

Building Stronger Regional Value Chains

First on the agenda is the development of robust regional value chains. The vision is to foster industries such as automotive, pharmaceuticals, and agri-processing across borders, which will leverage Africa's diverse strengths. Establishing these interconnected supply chains by 2030 can greatly enhance productivity while promoting intra-African trade.

Constructing Interconnected Infrastructure

The second recommendation emphasizes the need for interconnected infrastructure. A comprehensive network connecting roads, railways, ports, and digital pathways will ensure that African markets can access goods and services efficiently and cost-effectively. This network is essential for reducing logistics costs and boosting Africa’s competitiveness in global markets.

Leading in Digital Trade

Embracing a digital trade revolution is the third key point. With Africa currently leading in mobile money accounts, the implementation of the Pan-African Payment and Settlement System (PAPSS) will catalyze trade by facilitating transactions in local currencies. This digital ecosystem will not only streamline payments but also allow the burgeoning creative economy — valued at nearly $59 billion — to flourish.

Revolutionizing Production through Technology

The fourth step involves technology-driven production systems. By harnessing advanced robotics and techniques like 3D printing, Africa can localize production processes while simultaneously enhancing quality and productivity. Integrating the Internet of Things (IoT) into manufacturing will create connected ecosystems, allowing for seamless collaboration across borders.

Enhancing Financial Integration for Growth

Financial integration represents the fifth recommendation. By harmonizing regulations across regional stock exchanges, Africa can enable businesses to secure funding more fluidly, thus driving economic growth. This integration is vital for creating a resilient financial sector capable of supporting the continent's ambitions.

Facilitating Free Movement of People

Another critical aspect is the free movement of individuals, which will allow professionals and entrepreneurs to contribute their skills where needed most. This freedom will further activate the services sector, underpinning AfCFTA’s aspirations for economic synergy.

Capitalizing on Climate Competitiveness

Lastly, leveraging Africa's climate competitiveness is essential for sustainable growth. With a youthful workforce and significant renewable energy potential, Africa can emerge as a frontrunner in green industrialization, creating jobs and driving innovation in climate-positive initiatives.

As stakeholders explore these proposals, the AfCFTA could position Africa to fully realize its economic potential, enhancing its role on the global stage. Leaders are urged not only to strategize but to act on these insights to build the prosperous future that the continent envisions.

As an advocate for tangible change, it is crucial for business leaders, policymakers, and investors to engage with these seven strategic points. By championing the proposed developments, we can collectively shape a robust economic landscape that benefits all Africans.