The African Continental Free Trade Area — the world’s largest free trade agreement by number of participating countries — marked its fifth operational anniversary with data confirming that intra-African trade volumes have doubled since implementation began, exceeding the projections of the agreement’s most optimistic early supporters.
Trade Volume Growth
Intra-African trade reached $315 billion in 2025, up from $156 billion in 2020. The growth has been concentrated in manufacturing, agricultural products, and services — sectors where African producers have comparative advantages and where the reduction of tariff and non-tariff barriers has had the most immediate impact.
Success Factors
Several factors have contributed to the stronger-than-expected performance. Digital payment infrastructure has reduced transaction costs for small and medium enterprises significantly. Regional logistics companies have invested heavily in cross-border corridors. Several major economies that initially implemented the agreement tentatively have become active champions as domestic industries found new export markets.
Persistent Challenges
Despite the positive trajectory, implementation gaps remain significant. Non-tariff barriers — regulatory inconsistencies, customs delays, infrastructure bottlenecks, and currency convertibility challenges — continue to impose costs that offset tariff reductions in many corridors. Dispute resolution mechanisms have been slow to develop, leaving many trade conflicts without clear resolution paths.
The Bigger Picture
The AfCFTA is increasingly being studied by economists and development institutions as a model for South-South trade integration. If sustained, the trajectory of intra-African trade growth could add approximately 7% to African GDP by 2035, according to World Bank modeling — a figure that would represent the most significant economic development in the continent’s history.
