Trade Talks Africa | Policy, Progress and People behind the AfCFTA: Issue 9
This issue comes at a time of escalating conflict in the Middle East, an unfolding crisis that is not a distant geopolitical concern for Africa, but a direct economic shock with significant implications for the continent’s trade agenda. Rising oil and gas prices, ongoing supply chain disruptions, and heightened global uncertainty are already filtering through African economies, driving up the costs of transport, production and trade.
In this context, the African Continental Free Trade Area (AfCFTA) becomes even more critical not only as a framework for boosting intra-African trade, but as a strategic buffer against external shocks. Strengthening regional value chains, reducing dependence on volatile global routes and deepening continental integration are no longer long-term ambitions, but urgent priorities for Africa’s economic resilience. Despite the looming global crisis, the AfCFTA has advanced into a decisive, action-oriented phase, signaling a clear shift from policy frameworks to practical implementation, deeper regional integration and stronger private sector engagement. Across the continent, momentum is steadily building as countries, institutions and businesses move from ambition to action translating AfCFTA commitments into tangible, real-world outcomes that are beginning to shape Africa’s trade landscape.
Stay informed. Stay engaged. Because integration matters.
Trade Talks Africa | Editor-in-chief
Dr Noncedo Vutula
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From ambition to implementation
Following the African Union Assembly in February, efforts intensified to operationalise AfCFTA through investment-ready projects and coordinated implementation mechanisms. A High-Level Implementation Committee, chaired by William Ruto, has been established to accelerate the operationalisation of the AfCFTA across member states. The Committee plays a coordinating and oversight role, ensuring that implementation efforts are aligned, efficient, and results driven. It brings together key stakeholders to address bottlenecks, promote accountability and prioritise actionable initiatives that can translate policy commitments into measurable outcomes. By focusing on faster execution and stronger coordination, the Committee is helping to drive momentum and ensure that AfCFTA delivers tangible benefits on the ground.
From rules to reality:
Advancing automotive trade and SME participation under AfCFTA
Key milestones under AfCFTA include the finalization of Automotive Rules of Origin (RoO) agreed in February 2026 which clarify what qualifies as an African-made vehicle or component and enable countries to benefit from preferential tariffs, thereby supporting the development of regional automotive value chains. This rollout of simplified trade guides for SMEs helps to address administrative and regulatory barriers by providing practical, step-by-step support for navigating cross-border trade. Together, these developments mark a shift toward more practical implementation, making it easier for businesses especially SMEs to participate in and benefit from intra-African trade.
Transforming trade through finance and digital systems
Trade facilitation is being strengthened through innovative financial and digital solutions. The Pan-African Payment and Settlement System (PAPSS) now enable intra-African payments in approximately 12 seconds, significantly reducing transaction costs and dependence on foreign currencies. At the same time, the AfCFTA Secretariat is prioritising the development of bankable projects, particularly in green industrialisation, to unlock private sector financing and drive sustainable economic transformation.
Strategic corridors and regional integration
Africa’s trade corridors are central to unlocking regional value chains. Strategic discussions on corridors such as Lobito and Nacala highlight the importance of balancing mineral exports with broader economic diversification including agriculture, manufacturing, and industrial development. Efforts to improve customs coordination, reduce border delays, and enhance infrastructure such as the planned East African Community regional customs bond are critical to enabling efficient intra-African trade. Together, these corridors reflect a strategic shift toward a more balanced approach leveraging Lobito to unlock mineral value chains while utilizing Nacala to drive diversification, resilience, and inclusive growth across Africa’s trade landscape.
Private sector engagement and innovation
The role of the private sector is becoming increasingly prominent as the AfCFTA transitions from policy to implementation. Collaborations with major players in the corporate sector, including Coca-Cola Company, are also essential to bolstering local sourcing and regional value chains throughout the continent. Coca-Cola aims to source up to 80% of its raw materials locally in Africa as part of its regionalisation plan. This strategy supports intra-Africa trade and lessens dependency on imports, which is in line with the goals of the AfCFTA. Supply chains are becoming more robust and integrated as key inputs, such as agricultural products like sugar, fruit pulp and millet, are increasingly sourced from inside the continent. These developments underscore a broader shift toward more inclusive trade, where businesses of all sizes are not only participants but key drivers of AfCFTA’s success, translating opportunities into tangible economic outcomes across the continent.
Upcoming Events
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Learning Opportunity
The Nelson Mandela School of Public Governance and Sciences Po Executive Education will be offering an executive education programme, Africa-Europe Cooperation for the Green Transition. The fully online course is designed to equip practitioners from the continent and around the globe to shape African European developmental cooperation and promote Africa’s green structural transformation.
Core thematic focus areas engaged include:
• Just energy transitions and renewable energy in Africa
• Green industrialisation in Africa
• Regional integration and supply chains
• Critical mineral supply and renewable technologies
• Technological innovation for climate-resilient development
Participants will learn from leading faculty from the Nelson Mandela School and Sciences Po, as well as pioneering academics and practitioners from across the African continent and emerge with deepened connections in a diverse network advancing Afro-European cooperation for Africa’s green future.
You can download the brochure for an overview of the course and the programme outline. For more details, please visit the website. Complete your application through this link.
Course dates: The course is 12 weeks long and will begin in September 2026. Applications close in mid-June.
Tuition fees: R82 300 (South African Rand)
- Feel free to email hannah.diaz@uct.ac.za to express your interest in attending.
Research Spotlight
- Ismail, F. WTO Reform and Trump 2.0: Will plurilaterals rebuild or fragment the global trade regime? The road to Yaoundé and beyond MC14