Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise (CPPE), emphasized the immense opportunity presented by the African Continental Free Trade Area (AfCFTA), which grants access to a market of 1.5 billion people across the continent.
“This is a significant opportunity as the AfCFTA protocol eliminates nearly all trade barriers, both tariff and non-tariff,” he stated.
Yusuf explained that the agreement provides African businesses with the potential to scale operations, reduce costs, and enhance competitiveness. With support from a stable macroeconomic environment, firms can leverage innovation and improved logistics to capture greater market share.
“For businesses with the necessary capacity, AfCFTA is a chance to grow, reduce unit costs, and compete within Africa and internationally. Companies will need to adopt innovative approaches, refine logistics, and utilize technology for efficient marketing and delivery,” Yusuf added.
He also stressed the importance of a conducive economic environment, calling for stable exchange rates, low inflation, and reduced uncertainty to boost investor confidence.
Yusuf outlined critical areas where government support is essential for AfCFTA’s success. Improved connectivity—via roads, rail, air, and sea—will be vital to facilitating effective trade across the continent. Enhanced payment systems will also be necessary to streamline transactions within AfCFTA, allowing countries to trade in their local currencies.
“The African Exim Bank is already working to enable smooth transactions within AfCFTA, helping countries conduct trade in their own currencies,” he said. “With these improvements, African nations will be better positioned to realize the full benefits of the continental free trade area.”
