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AfCFTA in Limbo? – MyJoyOnline

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ACCRA, Aug. 18, 2020 (Xinhua) — A man sits outside the African Continental Free Trade Area (AfCFTA) Secretariat office in Accra, capital of Ghana.

The African Continental Free Trade Area (AfCFTA) comes at a time when the continent remains one of the last major regions to fully harness the potential of a comprehensive free trade regime. The successful and prudent implementation of this high-profile initiative is expected to enhance intra-African trade and drive optimal regional integration through a single, unified market spanning 54 African states.

Undoubtedly, the creation of AfCFTA has positioned Africa to improve its competitiveness in global markets and to accelerate industrialisation, particularly given the continent’s large population and vast, largely untapped natural resources.

There is ample evidence that free trade areas in the Global North have propelled economies to higher levels of prosperity and wealth creation. For instance, in the European Union, trade among member states continues to flourish. This success is largely due to the effective management of cross-border challenges such as visa restrictions, currency convertibility, and security threats, which might otherwise undermine integration efforts.

Furthermore, countries in the Global North have implemented proactive policies that have helped reduce systemic risks, fostering stronger economic ties, deeper trade integration, and enhanced cooperation. These measures have contributed significantly to sustained GDP growth across participating states.

Africa’s Woes

In Africa, however, one critical challenge that cannot be overlooked is the persistent threat of insurgency. These activities continue to permeate parts of the continent and pose a serious risk to the successful implementation of AfCFTA.

There are numerous instances that highlight this concern. Frequent attacks on vulnerable populations by extremist groups and the rise of violent conflicts in certain regions threaten both human security and economic stability. Without effective intervention, these developments could undermine the core objectives of AfCFTA.

For example, there have been reports of trucks transporting vegetables and other agricultural produce from Niger through northern Nigeria to Ghana being attacked and detained for several days. As a result, large quantities of perishable goods were destroyed, leading to significant financial losses and disruptions in trade and logistics.

This is not an isolated case. In February 2026, about seven Ghanaian traders were reportedly killed in an attack by insurgents in northern Burkina Faso. In addition, subsequent restrictions on exports from Burkina Faso to neighbouring countries further disrupted trade flows, complicating efforts to operationalise AfCFTA effectively.

Global developments also pose indirect challenges. The ongoing Russia–Ukraine conflict and tensions involving the United States, Israel, and Iran continue to affect global trade dynamics, with developing regions such as Africa particularly vulnerable to these external shocks.

Tensions around the Strait of Hormuz—through which a significant portion of the world’s oil and liquefied petroleum gas passes—further heighten uncertainty. Any disruption in this critical trade route could have severe consequences for energy prices and supply chains, ultimately affecting African economies and the AfCFTA framework.

If these challenges persist, they risk undermining the gains made so far. Without decisive action, the progress achieved under AfCFTA could be reversed, rendering years of effort ineffective.

Suggestions

To address these challenges, there is a need for a strengthened regional security framework. This should involve close collaboration among African regional blocs, the AfCFTA Secretariat, and key stakeholders such as the Chartered Institute of Logistics and Transport (CILT Africa).

A coordinated approach—through dialogue, policy alignment, and joint action—could help mitigate the threats facing trade and regional integration. Establishing practical and enforceable strategies will be critical to safeguarding the future of AfCFTA.

If effectively implemented, such measures could enable AfCFTA to evolve into a robust multinational trade system comparable to those in Europe, North America, and Asia, ensuring that the initiative does not drift into uncertainty but instead achieves its intended objectives.

KING EFFAH-NKYI
GITC-Accra / Logistics Control Limited, Tema
Email: logisticscontrolltd@yahoo.com

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.


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