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Home Business Agribusiness

UNECA Highlights Progress in AfCFTA Rollout as Guided Trade Initiative Expands Across Continent

7 months ago
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UNECA Highlights Progress in AfCFTA Rollout as Guided Trade Initiative Expands Across Continent

The African Continental Free Trade Area (AfCFTA) is entering a new phase of implementation, marked by broader participation and deeper institutional integration, according to a new report by the United Nations Economic Commission for Africa (UNECA).

In the report titled “Advancing the Implementation of the African Continental Free Trade Area: Proposing Transformative Strategic Actions,” UNECA highlights the steady progress of the AfCFTA’s operationalisation, driven by the Guided Trade Initiative (GTI)—a pilot framework introduced in 2022 to facilitate the first wave of intra-African trade under the AfCFTA protocol.

Initially launched with seven pilot countries—Ghana, Kenya, Egypt, Cameroon, Mauritius, Rwanda, and Tanzania—alongside Tunisia, the GTI enabled trade in a narrow basket of goods such as ceramic tiles, batteries, tea, coffee, corn starch, and sisal fibre. The latest phase, now underway, has expanded to include over 30 countries, notably Nigeria and South Africa, Africa’s two largest economies. The move significantly bolsters the political and economic weight behind the AfCFTA’s practical rollout.

UNECA describes the GTI as a “creative and innovative” mechanism to operationalise the free trade agreement and to test the institutional and procedural readiness of member states.

Among key the findings, the report underscores the critical importance of national institutional frameworks. Countries that have established dedicated AfCFTA implementation bodies—including national committees—are better positioned to navigate trade rules, coordinate regulatory agencies, and support private sector participation.

However, the report cautions that low levels of awareness among exporters and importers about the AfCFTA tariff liberalisation regime are undermining uptake. A common misconception, according to UNECA, is that all intra-Africa trade under AfCFTA would immediately enjoy zero tariffs, which has caused confusion and discouraged some firms from participating.

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Additionally, the report identifies logistics and transport infrastructure as major enablers of trade, while also calling attention to the underutilised potential of diplomatic commercial presence. Trade attachés and commercial officers, it argues, can play a pivotal role in market intelligence, B2B matchmaking, and unlocking new export opportunities.

Policy reforms and targeted investments—especially in customs efficiency, standards harmonisation, and trader education—will be vital to unlock the full economic potential of what is poised to become the world’s largest free trade area by number of participating countries.

Tags: AfCFTA RolloutGuided Trade InitiativeUNECAUNECA Highlights Progress in AfCFTA Rollout as Guided Trade Initiative Expands Across Continent

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