The African Continental Free Trade Area (AfCFTA) holds the promise of raising real incomes across the continent by 7–9% and pulling 40 million people out of extreme poverty by 2035, but that promise remains largely unfulfilled, the World Bank has warned.
Launched in January 2021, the AfCFTA is a landmark trade agreement among African Union member states designed to create a single continental market for goods and services. Despite its ambitious vision, the World Bank’s April 2026 Africa Economic Update paints a sobering picture: the agreement’s transformative impact has yet to materialise.
According to the report, unlocking the full potential of the AfCFTA will not happen on its own. It will require frontrunner countries to take the lead on implementation, backed by robust monitoring, strict enforcement of commitments, and targeted investment in regional public goods.
The World Bank was candid about where the real obstacles lie. “While tariff reductions under the AfCFTA will help intraregional trade, the most significant constraints stem from internal trade costs,” the report noted. These internal costs include inadequate transport and logistics infrastructure, inefficient customs and regulatory systems, limited digitalisation, and high domestic finance and logistics expenses, structural challenges that tariff cuts alone cannot resolve.
Adding to these hurdles, non-tariff barriers such as selective export bans remain widespread across the region, further dampening the flow of trade between African nations.
Looking ahead, the World Bank urged that Phase II of the agreement prioritise investment, intellectual property, competition policy, and the meaningful inclusion of women and youth in trade, areas seen as critical to tackling the deep-rooted internal cost barriers.
Even so, the Bank struck a note of caution, warning that implementation is likely to be gradual given the substantial investment requirements and the need for far-reaching institutional and regulatory reforms.
The message from the World Bank is clear: the AfCFTA’s potential is real and significant, but turning that potential into tangible gains for African people will demand sustained political will, coordinated action, and long-term investment across the continent.
Source: Apexnewsgh.com