How can the free trade agreement transform Africa by 2025?


** Tomorrow’s Africa: between innovative reforms and economic resilience **

The African economic chessboard seems to be changing, as revealed by the last report of the African Development Bank (BAD). It is advisable not to be satisfied with reassuring figures of growth: 4.1 % in 2025, following a relative slowdown at 3.2 % in 2024. Beyond optimistic forecasts, this report presents a complex backdrop where bold political, colossal investments and an increasingly determined private sector mix.

### The dynamics of reforms and the boom in innovation

The recent elections through the continent have introduced a new breath into the political landscape. Power transitions, often synonymous with instability, can be seen here as opportunities. As Redding Maseko, South African economist, points out, new governments seem determined to implement innovative policies. These changes are accompanied by a new vision focused on massive investments in key sectors such as infrastructure, manufacture and information technology. For example, initiatives concerning the digitization of public services and networking commercial regulations open doors to digital financial solutions, which represent a crucial lever in the entrepreneurial boom.

### The rise of the private sector and the importance of the AFCFTA

At the heart of this dynamic is the private sector, a real catalyst for growth. The African continental free trade agreement (AFCFTA), which aims to create a common market for a billion Africans, is a strategic pillar for economic development. African companies are encouraged to structure themselves around this regulatory framework, thus facilitating the circulation of goods and services through borders.

Albert Muchanga, High Commissioner for Trade in the African Union, sees an unprecedented opportunity in the AFCFTA for continental companies. In a context where Western economies no longer give priorities to exchanges with Africa as in the past, it is crucial that African countries take the lead. For example, the development of integrated logistics chains and transport infrastructure could revolutionize intra-African trade, making the continent less dependent on external markets.

### is in mind, but with challenges

5 % growth projections for some Eastern African countries are a regional vitality. The Boom of Agritech in Kenya, for example, is a case of school. However, it is essential to wonder if this growth is sustainable in the long term. Dependence on a limited number of activity sectors – such as agriculture and tourism – could constitute a vulnerability in the face of internal and external challenges. The countries of the region, although growth, must diversify their economies to prevent crises caused by fluctuations in world prices for raw materials.

### The West is restructured around oil

Meanwhile, in West Africa, the transformation of the petroleum industry may well redefine economic power relations on the continent. Dangote’s colossal refinery project, which is gradually being put in place, is symptomatic of a regional desire to reduce dependence on imports and improve energy safety. The new installations in Senegal and Ghana show that Africa not only has important resources, but also the skills necessary to transform these resources into added value.

However, these initiatives must be approached with caution. Based an economy in the petroleum sector, despite promises of prosperity, can quickly become a curse, as many countries have learned in the past. By considering strategic diversification towards renewable energies and tech services, savings like that of Ghana should take care not to repeat the mistakes of the past.

### Conclusion: a dual vision for resilient Africa

Africa’s economic trajectory in 2025 is both promising and strewn with pitfalls. Advanced in the private sector, daring reforms and the collective commitment of governments are encouraging signs to build an autonomous and prosperous future. However, governments and economic actors will have to maintain a balance: on the one hand, reflection on the sustainability of new innovations and on the other, the need to diversify sources of growth. Tomorrow’s Africa could be the embodiment of new resilience, if it manages to combine innovation capacity, strategic adaptation and intersectoral approach. It is an ambitious but perfectly achievable challenge, provided that the actors of change are vigilant and united.

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