The African Continental Free Trade Area (AfCFTA) Secretariat has challenged banks across the continent to step up as vital enablers of Africa’s borderless trade, by driving seamless cross-border payments, risk management and unlocking capital flows that will power the continent’s single market dream.
The Secretary General, Africa Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, made the call during an investment and business forum, where he highlighted the tangible steps taken by the AfCFTA secretariat to drive integration, such as the introduction of the e-Tariff Book and the AfCFTA adjustment fund, as well as the critical need for synergy between public and private investment to address Africa’s infrastructure gaps and finance its development priorities.
The discussion also focused on the barriers preventing the scaling of intra-African trade, like the lack of adequate logistics and transport infrastructure among others.
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The Pan-African Payments and Settlement System (PAPSS) was highlighted as a potential game-changer in unlocking new cross-border trade opportunities by facilitating smoother payments and transactions.
Mene lauded the efforts of the Nigerian government at establishing its trade remedy authorities to address investigation, issues of origin and punitive measures where necessary.
The forum believed that Africa’s transformation hinges on the development of regional value chains, the scaling of intra-African trade, and the need to build both financial and infrastructural capacities that will enable economic integration.
Mene indicated that challenges to the growth of the initiative included customs inefficiencies, infrastructure deficits, and limited access to affordable finance for businesses.
He however said the Secretariat was tackling the challenges through a combination of policy harmonisation, a corridor-based approach to trade facilitation, digital trade initiatives, and collaborative efforts to expand infrastructure and financial access.”
Harmonising trade regulations is crucial to creating a predictable business environment. The adoption of the AfCFTA Protocol on Investment provides a unique opportunity to attract foreign direct investment (FDI) into priority sectors such as agro-processing, manufacturing, and digital services.”
Mene called for strong coordination among stakeholders, and other relevant parties, to ensure that the AfCFTA delivers lasting economic benefits for all Africans, emphasizing the need for supportive policies, partnerships, technical assistance, and monitoring of implementation to facilitate the success of MSMEs under the agreement.
He called for deliberate interventions which are essential to make AfCFTA work for micro, small and medium-sized enterprises (MSMEs).
“Without access to a larger, integrated market, firms, especially SMEs, struggle to achieve economies of scale, attract investment, and compete with larger global players.
This fragmentation has historically increased transaction costs, reduced trade efficiency, and restricted economic diversification across the continent.
“Fortunately, AfCFTA is dismantling these challenges and barriers, unleashing the potential for intra-African trade to flourish, primarily through value-added products.”
Mene pointed out that peace and stability remain foundational to AfCFTA’s success, adding that ongoing instability and conflict, exacerbated by issues such as terrorism and political strife, pose significant challenges to cross-border trade.
“While AfCFTA holds the potential to foster peace by reducing inequities and creating wealth, in border areas, achieving its objectives hinges on maintaining peace.
“Thus, safeguarding peace and fighting insecurity should remain at the top of Africa’s “behind-the-border agenda”, he added.
In her comments, the Resident Representative of UNDP Rwanda, Dr Fatmata Lovetta Sesay, noted that harmonisation of trade procedures under AfCFTA and aligning them with existing regional and global trade arrangements will go a long way to addressing persisting bottlenecks.
“AfCFTA’s online mechanism for Reporting, Monitoring and Eliminating Non-Tariff Barriers is an example of a continental system to address challenges businesses might encounter when they ship goods across borders”, she noted.
Director General of the chamber, Dr Chinyere Almona, expressed concerns about the potential for import surges and the need for Nigeria to improve its competitiveness to take full advantage of the AfCFTA.
She urged the government to ensure that the ‘Nigeria First Policy’ complements the AfCFTA and focuses on strategic diplomacy and global competitiveness.
She emphasized the need for investments in infrastructure, vocational training, and digital skills to align with the evolving market needs of the AfCFTA.
The LCCI boss stressed the importance of addressing infrastructural challenges, such as power and transportation, to enhance Nigeria’s competitiveness within the AfCFTA.
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