The African Union (AU) marked a historic milestone on Thursday, February 13, with the launch of the operational phase of the African Continental Free Trade Area (AfCFTA). This ambitious project, years in the making, has the potential to reshape the continent’s economic landscape and foster unprecedented levels of intra-African trade. The launch ceremony, held in Niamey, Niger, served as a powerful symbol of Africa’s commitment to integration and self-reliance. The AfCFTA, the largest free trade area since the creation of the World Trade Organization, encompasses 54 of the 55 AU member states, with only Eritrea yet to sign. This vast market of 1.2 billion people, projected to reach 2.5 billion by 2050, presents immense opportunities for businesses and individuals across the continent. The operationalization of the AfCFTA signifies a shift from mere agreement to concrete action, paving the way for the free flow of goods, services, and investments across borders.

Recent developments at the AU Summit have further underscored the continent’s determination to accelerate the implementation of the AfCFTA. During the 2025 Africa Business Forum, Under Secretary General and Executive Secretary of the United Nations Economic Commission for Africa (ECA), Claver Gatete, emphasized the importance of leveraging the AfCFTA to foster regional value chains. Gatete stated, “We must accelerate the implementation of the AfCFTA to establish these value chains, particularly in pharmaceuticals, agriculture, and industrial sectors.” He also highlighted the need for collaboration among African nations to overcome the region’s high trade costs, which remain much higher than trade with external markets. “To build a competitive Africa, we need to reduce these barriers, improve infrastructure, and invest in value-added production,” Gatete added. These remarks reflect the growing recognition of the AfCFTA as a critical tool for driving down costs and improving Africa’s global competitiveness.

The AU Summit also showcased key initiatives and projects aimed at driving Africa’s economic transformation. One such initiative is the Africa Electric Vehicle project, which links the Democratic Republic of the Congo and Zambia. This project, highlighted by Gatete, demonstrates how building economic zones, improving transport infrastructure, and attracting private investors can unlock significant opportunities for sustainable development. Discussions at the Forum also centered on the need for greater investment in Africa’s industrial sectors. Gatete pointed out that Africa’s debt has reached USD 1.21 trillion, calling for a collective approach to address high indebtedness. “The AfCFTA is an essential tool to drive down costs and improve Africa’s competitiveness globally,” he remarked. These discussions signal a renewed commitment to regional integration and industrialization, with the AfCFTA at the heart of Africa’s economic transformation.

Despite these promising developments, challenges remain. The AfCFTA faces hurdles such as infrastructure deficits, non-tariff barriers, and uneven implementation across member states. Gatete’s call for African governments and businesses to challenge external perceptions about African products underscores the need for a shift in mindset. “We need to change the narratives about Africa and show we can make globally competitive final products. Products coming from Africa are neither fake nor unfinished—they are a testament to our capabilities and our future,” he said. This sentiment highlights the importance of not only implementing the AfCFTA but also fostering a sense of pride and confidence in African-made goods and services.

The AU Summit concluded with a strong commitment to advancing the AfCFTA and unlocking Africa’s economic potential. The collaborative spirit of the Forum, coupled with the launch of strategic projects like the Africa Electric Vehicle initiative, signals a bright future for Africa’s trade and industrial development. As the continent works to transform its economic landscape through the AfCFTA and other partnerships, the world is watching closely. The AfCFTA represents a bold vision for a more integrated and prosperous Africa, and its success will depend on sustained political will, effective implementation, and a collective effort to overcome existing challenges. With these elements in place, the AfCFTA has the potential to usher in a new era of economic growth and opportunity for the African continent.

By Hailemichael Semachew,Researcher, Horn Review