The African Continental Free Trade Area AfCFTA – Utopia or Real Opportunity?

Existing high tariffs and non-tariff trade barriers on the African continent prevent greater intra-African integration. The African Continental Free Trade Area (AfCFTA), in force since January 2021, aims to generate sustainable growth through greater trade integration on the continent. However, the agreement’s chances of success are still unclear: while the targeted tariff liberalizations could drastically reduce trade costs, it remains questionable whether they will be implemented as planned – lessons from the past suggest this will be exceedingly difficult. Moreover, complex rules of origin allow protectionism through the back door. The next few years will be decisive for the AfCFTA: if its member states manage to implement the agreement’s measures in a disciplined manner, the result could be an integrated African market.