How Intra-African Trade Is Changing the Continent's Business Landscape

Trade patterns across Africa are shifting dramatically as the African Continental Free Trade Area transforms how businesses operate and connect. AfCFTA trade in Africa reached $208 billion in 2024, marking a 7.7 percent increase from the previous year and signalling a new era of economic integration. This growth demonstrates that African countries are finally prioritising trade among themselves rather than relying primarily on external markets. The African trade agreement is not merely a policy document but a catalyst reshaping manufacturing, logistics, agriculture, and services across 54 nations united under one ambitious vision.

For decades, African countries traded more with Europe, Asia, and North America than with their immediate neighbours. This colonial legacy kept economies fragmented whilst denying African businesses the scale needed to compete globally. AfCFTA represents a conscious decision to rewrite this narrative, creating the world's largest free trade area by number of countries and connecting 1.4 billion people with a combined GDP of $3.4 trillion. Africa's voices deserve to be heard by Africans, and establishing commercial networks that strengthen continental unity, whilst demonstrating economic prowess that the world must understand and appreciate.

Breaking Down Barriers That Have Limited Regional Commerce

Non-tariff barriers historically strangled African trade more effectively than formal tariffs ever did. Customs delays, inconsistent regulations, duplicated inspections, and opaque procedures added weeks to shipping times and thousands of dollars to transaction costs. Companies found it cheaper to export coffee from Kenya to Germany and reimport it than to trade directly with neighbouring Tanzania. AfCFTA targets these inefficiencies through coordinated reforms that address rules of origin, customs harmonisation, and the elimination of bureaucratic obstacles that make regional trade prohibitively expensive and frustratingly slow for businesses attempting cross-border operations.

The Pan-African Payment and Settlement System launched in January 2022 addresses another critical barrier by enabling companies to conduct transactions in local currencies. Previously, a Nigerian importer buying goods from Ghana needed US dollars as the intermediary currency, incurring conversion costs and foreign exchange risks. PAPSS eliminates this friction whilst reducing Africa's dependence on external currencies for internal commerce. Mobile money processed $1.68 trillion globally in 2024, with Africa accounting for 65 percent of that value, demonstrating technological readiness for sophisticated financial infrastructure supporting increased trade volumes.

Creating New Opportunities for Manufacturing and Value Addition

The most significant impact of AfCFTA trade in Africa extends beyond increased trade volumes to a fundamental transformation of what African countries produce and export. Historically, intra-African exports consisted primarily of raw commodities with minimal processing. Rwanda now exports packaged coffee, tea, avocado oil, and honey to continental markets rather than just raw beans. Tanzania trades processed coffee and sisal fibre instead of unrefined agricultural products. These shifts represent strategic moves up value chains, creating jobs, building industrial capabilities, and capturing profits previously surrendered to foreign processors and manufacturers.

Manufacturing competitiveness depends on achieving economies of scale that fragmented national markets cannot support. A factory serving Kenya's 50 million people faces different economic conditions than one serving the 1.4 billion potential customers of the AfCFTA. According to Afreximbank's African Trade Report 2024, intra-African trade rose to $192.2 billion in 2023, a 3.2 percent increase that pushed the share of formal intra-African trade from 13.6 percent in 2022 to 14.9 percent in 2023. This expansion creates viable markets for industries previously deemed uneconomical, encouraging investment in sectors from pharmaceuticals to automotive assembly across the continent.

Practical Strategies for Businesses Navigating the New Trade Landscape

Companies seeking to capitalise on AfCFTA opportunities must begin by understanding which countries have completed the administrative processes enabling actual trade under the agreement. As of September 2025, eleven countries actively trade under AfCFTA rules, including Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania, and Tunisia. South Africa commenced trading under the Guided Trade Initiative in January 2024, whilst Nigeria joined in July 2024. Businesses should prioritise these markets where the legal frameworks and customs systems already support AfCFTA transactions, rather than waiting for slower adopters to complete preparations.

Showcase Africa by developing products specifically designed for African markets rather than adapting Western-origin exports. African preferences, climates, infrastructure realities, and price sensitivities differ significantly from developed markets. Companies succeeding in cross-border African trade invest in understanding diverse consumer needs, adapting offerings accordingly, and building distribution networks suited to African conditions. Regional warehousing, flexible payment terms, smaller package sizes, and products that address uniquely African challenges position businesses for success in ways that generic international strategies cannot match.

Updates and Trends Shaping the Future of Continental Trade

Regional economic communities are driving AfCFTA implementation at the sub-continental level with varying degrees of success and momentum. The Southern African Development Community led intra-African trade in 2024 with $58.1 billion in exchanges, followed by the Economic Community of West African States with $52.8 billion. These regional blocs serve as laboratories for testing trade protocols and resolving implementation challenges before full continental rollout. The East African Community surpassed $11 billion in total trade within its bloc in 2024, marking a 22 percent increase driven by agricultural produce and manufactured goods, demonstrating regional value chain potential.

Infrastructure investments are accelerating to support higher trade volumes and unlock the economic potential of landlocked countries. The Lobito Corridor Railway connects copper producers in the Democratic Republic of Congo and Zambia to Angola's Atlantic port, dramatically reducing transport costs to Western markets. Kenya's Dongo Kundu Special Economic Zone expansion, Tanzania's Tanga Port completion, and Rwanda's Rusizi Port development enhance regional logistics capabilities, which are essential for realising the AfCFTA's promise. These projects demonstrate how strategic infrastructure spending creates multiplier effects, stimulating trade whilst attracting investment across related industries and services sectors.

Showcase Africa through digital platforms, transforming how businesses discover trade opportunities and execute transactions across borders. The African Trade Observatory provides data and insights to address trade hindrances whilst connecting buyers and sellers across the continent. E-commerce platforms enable even small manufacturers to reach customers in distant markets without establishing physical distribution networks. Blockchain-based systems enhance transparency in cross-border transactions, reducing disputes and building trust between trading partners who may lack established relationships or prior commercial history.

Building Sustainable Trade Systems That Serve African Interests

The full potential of the African trade agreement remains unrealised, with significant gaps between actual trade volumes and estimated capacity. In 2024, intra-African exports fell short of potential by an estimated $77 billion, suggesting total trade could reach $296.3 billion with proper implementation and infrastructure support. Product categories with the most significant untapped potential include machinery, motor vehicles and parts, food products, minerals, chemicals, plastic and rubber, and manufactured goods, which are currently imported from outside Africa despite the presence of continental production capacity within member states.

Success requires political will extending beyond signing ceremonies to the difficult work of harmonising regulations, training customs officials, and resisting protectionist pressures during implementation. Countries must balance legitimate concerns about domestic industries with the long-term benefits of competitive pressure and access to larger markets. The World Bank estimates AfCFTA could lift 30 million Africans out of extreme poverty, boost the incomes of nearly 70 million people, and generate $450 billion in additional income by 2035 if implemented as designed. These projections justify short-term adjustment costs whilst demonstrating the transformative potential of African economies when they finally trade seriously with each other.

Showcase Africa by celebrating businesses that have successfully navigated the AfCFTA, sharing their experiences, and encouraging others to follow. South Africa's inaugural shipment to Kenya under AfCFTA rules included refrigerators, machinery, and agricultural products, symbolising a new era in regional trade dynamics. These pioneer stories provide blueprints for others whilst demonstrating that continental trade is not merely aspirational but practically achievable for companies willing to invest in understanding the framework, completing necessary documentation, and building relationships across borders that colonialism divided but AfCFTA reunites.

Visit our website for more updates and insights into the trends shaping the continent's business landscape.