Successful implementation of AfCFTA requires urgent reforms, says ECA

The Economic Commission for Africa (ECA) says the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement requires urgent reforms at all levels of government.

The ECA gave the advisory in its Economic Report on Africa (ERA), which was officially launched during the 2025 conference of ministers of finance, planning, and economic development (COM 2025).

The report advocates for targeted industrial policies, increased investment in productive capacity, and support for small, and medium enterprises (SMEs).

The ECA said the measures aim to strengthen Africa’s value chains in key sectors such as agro-processing, automotive, pharmaceuticals, and renewable energy.

According to the report, governments should simplify customs procedures and implement digital technologies, such as blockchain and electronic data processing, to reduce trade costs and enhance efficiency.

The commission also stressed the need for greater investment in digital infrastructure, such as broadband networks, data centres, and internet exchange points.

Additionally, the ECA said initiatives such as the single African air transport market and the pan-African payments and settlement system are expected to facilitate the free movement of people, goods, and capital.

The commission said another key priority is sustainable urban development, which aims to support policymakers in tackling the challenges posed by rapid urbanisation.

Presenting the findings, Hanan Morsy, ECA deputy executive secretary and chief economist, urged African leaders to consider the social dimensions of AfCFTA.

“What kind of human capital and skills should Africa invest in for the future of work?” Morsy said.

“What measures will ensure AfCFTA and the new protocol on women and youth in trade best support women-led businesses and youth employment?”

On January 22, Vice-President Kashim Shettima joined other world leaders to push for the full implementation of the AfCFTA agreement, with a target to boost the continent’s economy to $29 trillion by 2050.