Optimizing African Business Participation in the AfCFTA: Challenges and Solutions

PAFTRAC’s study reveals that the majority of African businesses are not taking full advantage of the opportunities offered by the AfCFTA. Challenges include lack of support, need for business information, access to finance and awareness of the free trade agreement. Business leaders show a lack of knowledge of the AfCFTA, highlighting the importance of awareness raising. To maximize the positive impacts, concerted action by public and private actors is crucial to support businesses in the implementation of the AfCFTA.
In a constantly changing African economic context, a study published by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC) in November 2024, is provoking strong reactions. This report entitled “PAFTRAC Africa CEO Trade Survey Report 2024: Assessing the impact of the AfCFTA on African trade”, highlights the worrying situation of African companies in exploiting the opportunities offered by the African Continental Free Trade Area (AfCFTA).

The results of this survey conducted among 1,388 business leaders active in 49 African countries reveal an alarming reality: 91.2% of business leaders believe they do not receive the necessary support to fully seize the opportunities offered by the AfCFTA. A worrying finding that calls into question the challenges facing African companies in a context of increasing globalization.

The study highlights the critical role of trade finance institutions, the AfCFTA Secretariat and governments in supporting businesses to fully exploit the African common market. Priority needs identified by business leaders include information on business opportunities, awareness raising on the benefits of the African Free Trade Agreement, easier access to credit and long-term financing, and capacity building and skills development.

A particularly worrying point is the lack of knowledge of the AfCFTA by a large proportion of business leaders, with 60% of them acknowledging a low or non-existent level of knowledge of this agreement. A gap that underlines the urgency of raising awareness and informing economic actors on the opportunities offered by the AfCFTA in order to maximize the positive impacts for the African economy as a whole.

Ultimately, this study highlights a major challenge for Africa’s economic development and underlines the need for concerted action by public and private actors to support businesses in implementing the AfCFTA. It is imperative to strengthen support, awareness-raising and training mechanisms to enable African businesses to fully take advantage of the opportunities offered by this common market and thus contribute to the continent’s sustainable prosperity.

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