As we approach the close of 2024, it’s essential to reflect on the progress made under the African Continental Free Trade Area (AfCFTA) initiative and acknowledge both the achievements and challenges that have defined the year. The AfCFTA is poised to reshape Africa’s economic landscape, yet as we near its second anniversary in 2025, it’s clear that significant work remains to fully operationalize the agreement.
Key Achievements of 2024
This year has seen notable milestones in advancing intra-Africa trade. Liberia and Madagascar officially ratified the AfCFTA Agreement, further strengthening the continent’s commitment to economic integration. Additionally, South Africa and Nigeria achieved significant progress by exporting their first consignments under the AfCFTA Guided Trade Initiative (GTI). This is an encouraging step forward in realizing the trade potential that the AfCFTA promises. The Council of Ministers also adopted tariff offers from Comoros, Ethiopia, and Malawi, increasing the total number of Provisional Schedules of Tariff Concessions (PSTCs) from 42 to 45. The participation of Botswana and The Gambia in this process further highlights the growing momentum among member states.
Challenges: Financial Sustainability and Youth Engagement
Despite these successes, substantial challenges remain. The operationalization of the AfCFTA Adjustment Fund, crucial for supporting countries facing revenue losses from tariff liberalization, has yet to be launched. The delay in this initiative raises questions about the readiness of some countries to fully commit to the agreement, possibly due to the financial risks associated with the transition.
Moreover, the AfCFTA Secretariat’s reliance on external funding remains a pressing concern. For long-term sustainability, it’s essential that member states bolster their financial contributions, reducing dependency on international donors. This will ensure that the AfCFTA can function effectively and independently, as recommended by Mr. Issoufou Mahamadou, the African Union Champion for the AfCFTA.
Another critical issue is the engagement of youth. The absence of the anticipated 2024 Youth Symposium, a follow-up to the successful 2023 event, has drawn attention to the lack of a sustained commitment to empowering the continent’s young people. The 2023 symposium saw over 1,500 young participants, demonstrating their eagerness to contribute to Africa’s economic future. The failure to hold a similar event in 2024 likely stems from funding constraints, but this must be addressed to ensure that youth are actively included in shaping the future of trade in Africa.
Looking ahead to 2025 and Beyond
The AfCFTA must transition from its foundational phase into a fully operational trade framework. The coming year should focus on the effective implementation of key protocols, particularly those aimed at empowering women and youth. This requires moving beyond discussions and taking concrete steps to reduce barriers to trade and enhance cross-border commerce. The next phase of the AfCFTA will require sustained political will, strong financial commitments, and greater collaboration among member states to ensure that the continent maximizes the potential of the agreement.
In 2025, the AfCFTA must strengthen collaboration across countries to tackle shared challenges. This will include improving infrastructure, enhancing trade facilitation, and investing in policies that promote inclusive economic growth. By focusing on these areas, Africa can ensure that the AfCFTA becomes a powerful tool for regional economic integration.
A Vision for a Collaborative and Prosperous Africa
As we close out 2024, we reflect on both the progress made and the work still ahead. The AfCFTA holds immense potential to transform Africa into a dynamic hub of economic opportunity, but realizing this vision will require action from all member states. Empowering marginalized groups, particularly women and youth, must remain at the forefront of our collective efforts. By embracing the collaborative spirit necessary for Africa’s growth, the AfCFTA can fulfill its promise of sustainable growth and shared prosperity for all Africans.
Harboursim LP remains committed to supporting these efforts and fostering greater collaboration across Africa’s economic landscape. We thank our readers for their continued engagement and look forward to more fruitful discussions in the year ahead. HLP-TRD-20241218-1418
