As trade wars and tariffs surge globally, the African Continental Free Trade Area, AfCFTA, emerges as a bold response to economic uncertainty.
Yemi Kale, chief economist at Afreximbank, says global trade tensions could push Africa toward deeper regional trade and less reliance on far-flung partners.
Speaking to the News Agency of Nigeria by phone on Sunday in Lagos, Mr Kale described AfCFTA as a pivotal tool to reshape Africa’s economic future.
He warned, however, that global instability may deter investment, with frontier capital hesitant to enter unpredictable markets like Africa.
African markets may also face a flood of cheap goods as exporters from China and others seek alternative destinations.
“Trade diversion is a real risk. Exporters avoiding US tariffs could dump goods in Africa, squeezing local producers,” he noted.
He explained that with surplus production and low costs, foreign goods could overwhelm African markets, stifling domestic industries.
“Instability breeds caution. And Africa, still reliant on frontier capital, could face setbacks if investors pull back,” he said.
In spite of these risks, Mr Kale sees opportunity. “The solution lies in strengthening continental trade ties and resilient supply chains,” he said.
Currently, intra-African trade sits at just 15 per cent — AfCFTA aims to boost that by unifying Africa’s fragmented markets.
Mr Kale said reducing reliance on Europe, China and the US is vital for long-term economic sustainability.
“The AfCFTA creates a unified platform, helping Africa weather global shocks through stronger regional cooperation,” he said.
He said that the agreement could shift Africa from economic vulnerability to self-sustained growth and resilience.
“This forces us to look inward. And trade more with ourselves — a proven path to faster development,” Mr Kale explained.
NAN reports that AfCFTA is a cornerstone of Agenda 2063, the African Union’s strategic framework for inclusive growth and sustainable development.
More than a trade deal, AfCFTA is a transformative economic blueprint to reclaim Africa’s economic future and global trade voice.
NAN
