AU Commissioner Outlines Strategies to Enhance AfCFTA Implementation and Boost Intra-African Trade

ADDIS ABABA — The African Union (AU) is actively implementing several strategies to accelerate the African Continental Free Trade Area (AfCFTA) and promote intra-African trade, revealed Albert M. Muchanga, the AU Commissioner for Trade and Industry. These measures include the development of a trade observatory and the hosting of the Africa intra-trade fair, aimed at fostering economic integration and boosting investment within the continent.

According Ethiopian News Agency, Commissioner Muchanga highlighted the success of the last year’s Africa intra-trade fair, which saw transactions exceeding 43.5 billion USD. This figure not only reflects the potential of intra-African trade to spur economic growth but also underscores the importance of such initiatives in encouraging investment across the continent. “This demonstrates the extent to which African countries can unleash exponential benefits from promoting intra-trade,” Muchanga stated, emphasizing the role of these events in increasing investment flows and enhancing the understanding of market needs among African suppliers.

Muchanga pointed to infrastructure development as a key factor in the effective implementation of the AfCFTA, noting the significant investments required to upgrade existing infrastructure. Citing an assessment by the African Development Bank (AfDB), he mentioned that Africa needs approximately 170 billion USD to develop the necessary infrastructure to support the continent-wide free trade agreement.

The Commissioner also stressed the importance of capacity building among member states, not only in creating new infrastructures but also in utilizing them for the collective benefit of the continent. He acknowledged the support of some African countries in the AfCFTA’s infrastructure development efforts. “The railway between Ethiopia and Djibouti, and developments like the Lobito Corridor being developed by the US, UK, and EU to link Angola, DRC, and Zambia, as well as the Chinese-funded rehabilitation of the Tanzania-Zambia railway at a cost of about 1 billion USD, are prime examples,” Muchanga explained.

The AfCFTA, aiming to create a single market for goods and services across Africa, seeks to liberalize the market for goods and services, thereby enhancing the movement of capital and people, and driving economic growth and development across the continent.