The success of the African Continental Free Trade Area: potentials and constraints
Authors: Larguet Farida , Bouakkaz Naoual 
Published: January 2024

Purpose. This study aims to demonstrate the variables on which African nations depended to realise their desire to create an area of free trade. It also intends to investigate these countries’ constraints in establishing the area, which may stymie their efforts.

Results. After thoroughly examining the Free Trade Area’s opportunities and limitations, the study came to the following findings: (1) the African countries’ long-term economic growth and social progress will be made possible by the African Continental Free Trade Area, whose very ambitious goals are based on Agenda 2063’s objectives; (2) African countries and the African Union aim to create a thriving free trade area based on several vital factors. One key factor is the potential to expand the African market, which could reach up to 1.2 billion people, providing abundant opportunities for intra-trade. Many African countries hope to boost neighbouring economies by reducing barriers and improving growth rates. Additionally, the continent's youthful population and wealth of natural resources can facilitate the development of various industries and the availability of diverse products for the continental market; (3) the countries in the continent have been facing long-standing issues that are not new to them. Firstly, trade constraints are seen as non-tariff barriers and high levels of informal trade, making it challenging to establish transparent, free trade zones. In addition, there are weaknesses in intra-regional trade structures and multiple regional agreements. Secondly, there are structural constraints that impede intra-African trade. A lack of manufacturing capabilities is one of these constraints, as most African countries generate income by exporting raw materials without converting them. Furthermore, the youth’s lack of education and skills makes structural transformation in African countries difficult. Furthermore, due to the size of the debt, the vast majority of revenues are directed towards debt repayment rather than investment. Thirdly, because of the social, political, and security constraints that poverty, food insecurity, and political and security instability represent in many African countries, solving these issues for those nations should take precedence over taking part in the free trade area implementation; (4) to sum up, even though there are several necessary components for creating a thriving trade area, they are not enough to overcome the multitude of obstacles and problems that many African nations face. These barriers will hinder the formation of a prosperous free trade zone that includes all African countries, which is essential for achieving overall continental growth that aligns with the region’s goals and Agenda 2063.

Scientific novelty. The study explored the potential success of the African Continental Free Trade Area, examining the resources and strengths African countries possess to achieve their goals, as well as the challenges and risks they face. After weighing these factors, the study concluded that achieving the ambitious goals of the free trade zone will be difficult due to the many obstacles it faces.

Practical value. The findings of this study hold immense value for African nations aspiring to forge lucrative commercial alliances under the Free Trade Area Agreement. Armed with the insights presented, these nations’ businesses are empowered to select politically and securely steadfast countries, economically and commercially varied nations, and those least burdened by social challenges, particularly poverty and food insecurity.