By Benadeta Mwaura - Reporter
Kenya, June 22,2026 - Despite the promise of a single continental market under the African Continental Free Trade Area (AfCFTA), Africa continues to trade more with the rest of the world than within its own borders, underscoring the significant hurdles that remain in unlocking the full potential of the agreement.
AfCFTA, which officially commenced trading in January 2021, seeks to create the world's largest free trade area by connecting 55 African countries into a single market for goods and services. The agreement aims to eliminate tariffs on up to 90 percent of goods, harmonise regulations and boost intra-African trade.
However, experts say progress has been slowed by persistent infrastructure deficits, high logistics costs, limited access to trade finance and fragmented regulatory systems across the continent.
While intra-African trade has recorded steady growth, it still accounts for only between 15 and 18% of the continent's total trade volumes, significantly below levels seen in Europe and Asia.
According to the latest estimates by the African Export-Import Bank (Afreximbank), intra-African trade reached approximately $220.3 billion (KSh28.5 trillion) in 2024, representing a 12.4% increase from the previous year.
Africa's combined population of more than 1.4 billion people and a gross domestic product exceeding $3 trillion present a significant opportunity for regional integration and industrialisation.
Yet many businesses continue to find it easier and cheaper to source products from markets outside the continent than from neighbouring countries.
Trade experts argue that non-tariff barriers, including lengthy customs procedures, inconsistent product standards, poor transport networks and border delays, continue to undermine efforts to deepen regional value chains.
The continent also faces a trade finance gap estimated at between $74 billion and $92 billion, limiting the ability of businesses, particularly small and medium-sized enterprises, to expand across borders.
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"Trade under AfCFTA rules is still super limited," according to discussions among African trade observers, despite widespread ratification of the agreement by member states.
The World Economic Forum notes that practical implementation remains the biggest challenge, with some trade corridors still characterised by high costs and inefficiencies that discourage businesses from using regional supply chains. "In some corridors, intra-African trade barriers make it easier to source from outside the continent than from a neighbouring country," the organisation observed in a recent analysis.
Improving transport infrastructure, expanding digital trade systems, strengthening customs cooperation and accelerating the implementation of AfCFTA protocols will be critical to closing Africa's trade gap.
Afreximbank estimates that addressing infrastructure bottlenecks alone could increase intra-African trade by more than 50%, particularly in manufacturing sectors that have the potential to drive value addition and job creation across the continent.
As governments push ahead with implementation, the focus is increasingly shifting from signing agreements to ensuring businesses can trade seamlessly across borders.
For AfCFTA to deliver on its promise, experts say Africa must move beyond policy commitments and invest in the systems, institutions and financing mechanisms needed to turn continental integration into a practical reality.