AfCFTA Opens Alternative Markets to Sectors Affected by Global Tariff Wars: Continental Report

Addis Ababa, April 30, 2025 (ENA) – Against the backdrop of rapid changes, marked by rising debt and global trade tensions that have cast a shadow over Africa’s post-COVID-19 economic recovery, the Economic Commission for Africa (ECA) and the Policy Center for the New South held a national dissemination launch of the Economic Report on Africa 2025 (ERA 2025).

This year’s edition of the report is titled, "Advancing the Implementation of the Agreement Establishing the African Continental Free Trade Area (AfCFTA): Proposing Transformative Strategic Actions."

Considered as one of the most comprehensive economic agreements in existence, the AfCFTA is widely recognized as a game changer for Africa’s long-term growth and prosperity.

Its protocols and mechanisms cover a wide range of dimensions such as trade in goods and services, dispute settlement, competition, investment, intellectual property, digital trade, and the contribution of women and youth.

ECA experts note that a meticulous implementation of the AfCFTA in 2045 could enable the continent to increase its GDP by 141 billion USD and intra-African trade by 276 billion USD (+45%).

In the short-term, the AfCFTA can help African industries threatened by rising international tariffs, such as the automotive and fertilizer sectors, accelerate their shift toward alternative regional markets.

ERA 2025 provides an overview of the implementation of the African free trade agreement and its potential impact on structural transformation, and inclusive and sustainable development in Africa.

According to ECA, the report also examines the gaps observed in its implementation and draws up a list of priority actions to ensure its successful implementation in a rapidly changing global trade context.

However, in order to make these ambitions a reality, the authors of the report note that African countries still need to take several steps to strengthen their position in global trade by creating a common African trade policy vis-à-vis other regions of the world, ironing out inconsistencies in AfCFTA implementation mechanisms and implementing the Protocol on the Free Movement of Persons, to accelerate the emergence of African regional value chains.