How AfCFTA Can Insulate Africa Against Trade Wars
ShutterstockHow AfCFTA Can Insulate Africa Against Trade Wars
In today’s volatile global trade environment—shaped by rising tariffs and power struggles between giants like the US and China—Africa finds itself at a pivotal crossroads. The African Continental Free Trade Area (AfCFTA) offers a promising framework to reduce dependency on external markets and enhance intra-African trade. However, longstanding logistical and structural inefficiencies continue to hamper progress.
A striking example: shipping a container from Mombasa to West Africa can take up to five months due to detours through European ports—while similar shipments from Europe take just 14 days. The AfCFTA’s Guided Trade Initiative of 2022, where goods took 72 days to reach their destination, highlights these bottlenecks.
Intra-African shipping and transport infrastructure remain underdeveloped. The article argues for African-led maritime solutions, just as regional airlines have improved air travel. Investment in homegrown fleets and port systems could significantly cut costs and delivery times.
Intra-continental trade currently stands at 14%, a stark contrast to the EU (70%), ASEAN (57%), and NAFTA (44%). Even within established blocs like the East African Community (EAC), trade remains low. Meanwhile, external players dominate African markets, often without preferential trade agreements, and African exports remain largely unprocessed raw materials.
The article urges stakeholders to see AfCFTA not as a cure-all, but as a starting point for deeper reforms. Priorities include building robust infrastructure, removing non-tariff barriers, fostering political will, and investing in human and technological capacity. These steps are essential if Africa is to move from a passive participant to a global trade leader.
Read the full article: How AfCFTA can insulate Africa against trade wars
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