A report assessing progress on regional integration in Africa revealed that the continent’s share of global trade remained below three percent in 2023, primarily driven by merchandise trade.
Despite efforts to promote intra-African trade, the report highlighted that African nations still conduct more trade with countries outside the continent.
Although there have been advancements in monetary and financial integration, the report indicated that member states had not met the macroeconomic convergence criteria, underscoring the challenges in regional integration.
The report emphasized that despite the official commencement of the African Continental Free Trade Area in January 2021, the expected improvements in intra-African trade had not materialized. Intra-African trade as a proportion of worldwide trade decreased from 14.5 percent in 2021 to 13.7 percent in 2022, with both intra-African exports and imports experiencing declines.
While progress has been made in areas such as roads and information and communication technology (ICT), developments in rail transport and energy infrastructure have been limited, largely due to financing challenges.
Stephen Karingi, Director of the Regional Integration and Trade Division at the Economic Commission for Africa (ECA), highlighted the top challenges facing the continent, including unconstitutional changes in government, unemployment, and poverty. He emphasized the critical role of effective implementation of trade agreements in driving economic benefits for the African people.
Africa faces a significant annual infrastructure funding shortfall estimated between $130 billion and $170 billion. To address this gap, innovative financial mechanisms such as blended finance and bonds focused on sustainability goals are being explored, along with debt-for-nature swaps. These initiatives aim to mobilize resources to bridge the infrastructure deficit and support sustainable development across the continent.
