The stakes are high. Africa’s collective GDP exceeds $3.4 trillion, and AfCFTA aims to create a single market of 1.2 billion people, potentially making it the world’s largest free trade area. If properly implemented, it could boost intra-African trade by over 52% by 2035, creating a powerful economic bloc capable of competing globally. However, the path to integration is complicated by long-standing issues of nationalism, protectionist policies, and economic disparities between member states.

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For decades, Africa has struggled with fragmented markets, making intra-African trade dismally low at just 15% of total trade, compared to 68% in Europe and 58% in Asia. This is largely due to colonial-era economic structures that left African nations trading more with former colonial powers than with their neighbours. AfCFTA seeks to break these barriers by eliminating tariffs on 90% of goods, standardising trade regulations, and fostering a unified industrial base that allows African businesses to scale up.

According to the World Bank, full implementation of AfCFTA could boost regional income by 7% and add $450 billion to Africa’s economy by 2035, lifting 30 million people out of extreme poverty. Manufacturing, which currently accounts for just 10% of Africa’s exports, is expected to expand, reducing the continent’s dependence on raw material exports. The economic logic is clear: regional integration would enhance African industries’ global competitiveness and attract foreign direct investment (FDI) into sectors such as technology, agriculture, and infrastructure.

Nationalism as a Double-Edged Sword

Despite the economic benefits of integration, many African nations remain reluctant to fully commit, citing concerns over national sovereignty and economic control. A major concern is the fear of unfair competition. For instance, Nigeria, Africa’s largest economy, initially hesitated to sign AfCFTA, worried it would flood the country with foreign goods and undermine local industries. Similarly, South Africa, the continent’s second-largest economy, has been cautious about fully opening its labour market, fearing job losses for its citizens.

Another significant issue is revenue loss. Many African governments rely heavily on import duties, which account for up to 30% of government earnings in some countries. Eliminating tariffs under AfCFTA means these nations must find alternative revenue sources, a transition not all governments are prepared for.

Economic nationalism is also fuelled by a history of unfulfilled trade agreements. The Economic Community of West African States (ECOWAS) has struggled with compliance, as member states frequently impose unilateral trade restrictions despite the bloc’s vision of a common market. The Southern African Development Community (SADC) has faced similar challenges, with nations like South Africa prioritising trade with Europe and China over regional trade. These setbacks make many governments hesitant to surrender control to a broader continental agreement.

The Role of Regional Blocs

Africa’s regional economic communities (RECs) have long been seen as the building blocks of continental integration, but their effectiveness has been mixed. The East African Community (EAC) has had some success, reducing trade costs by 30% through improved infrastructure and streamlined customs regulations. In contrast, ECOWAS and SADC have struggled with conflicting policies, leading to inefficiencies and slow progress in trade liberalisation.

One of the biggest hurdles is the overlapping memberships of African countries in multiple regional blocs, creating regulatory confusion. A country like Kenya, for example, belongs to both the EAC and the Common Market for Eastern and Southern Africa (COMESA), which have different trade rules. This fragmentation dilutes the effectiveness of economic agreements and slows down integration efforts.

Can Africa Integrate Without Losing Sovereignty?

A realistic approach to economic integration must acknowledge national interests while finding common ground for regional cooperation. A “flexible integration” model, where countries adopt AfCFTA provisions at their own pace, could help ease the transition. Instead of enforcing blanket policies, member states could prioritise sectors that align with their economic strengths while protecting vulnerable industries.

Strategic industrial policies will also be key. Only 10% of Africa’s exports are manufactured goods, compared to 70% in Europe, highlighting the need for coordinated industrialisation efforts. Rather than competing, African countries should focus on complementing each other’s strengths. For instance, Ethiopia’s strong textile industry could supply raw materials for garment factories in West Africa, creating a regional supply chain.

Reducing trade barriers is another critical step. Africa’s average import cost of $2,492 per container is nearly triple that of East Asia due to bureaucratic customs procedures. Simplifying trade regulations and improving port efficiency would drastically lower costs and make intra-African trade more competitive.

Investment in infrastructure is also crucial. The continent faces an annual infrastructure funding gap of $68 billion to $108 billion, making transportation and logistics expensive. Improved road networks, railways, and energy supply would reduce costs and enhance trade within Africa.

The Future of African Economic Unity

Africa’s economic future depends on its ability to balance regional integration with national sovereignty. While nationalism serves a protective function, excessive economic isolationism could leave African economies vulnerable to external pressures from global economic giants like China, the US, and the EU. AfCFTA offers an opportunity to create a self-sustaining economic ecosystem that reduces reliance on foreign markets.

The journey towards economic unity will be challenging, but Africa must decide whether to continue as a collection of fragmented economies or rise as a formidable economic powerhouse. The potential reward is massive—$4 trillion in consumer and business spending is at stake.

Economic unity is like weaving a grand African tapestry. Each nation contributes its unique thread, ensuring the fabric is strong and vibrant. But if some threads refuse to intertwine, the fabric weakens. The challenge is not whether Africa should integrate, but how to do so while preserving its unique identities. If leaders can strike the right balance, Africa could become a global economic force, shaping its own destiny instead of being shaped by others.

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The rise of start-ups in Africa has been remarkable over the past decade. This growth has significantly benefitted the continent, generating over $217 million in February 2024 alone, marking a 182% increase from January. According to the African Private Equity and Venture Capital Association (AVCA), African start-ups raised over $5 billion in venture capital in 2023.

Tech start-ups, in particular, are driving the majority of this revenue. According to Statista, African tech start-ups raised over $2.4 billion in 2023. Start-ups in Kenya secured $674 million, Egypt generated $590 million, South Africa raised $590 million, and Nigerian start-ups attracted nearly $400 million. This growth reflects the impact of Africa’s young, tech-savvy population, increasing mobile and internet penetration, and the expansion of the middle class.

Historically, African start-ups were viewed as local ventures, aiming to overcome the barriers faced by Small and Medium-sized Enterprises (SMEs). However, in the last decade, many have shifted focus towards regional markets as a stepping stone to global success. Africa’s rich yet diverse markets provide a unique opportunity for start-ups to expand beyond their national borders.

Regional integration initiatives, such as the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC), have fostered a more interconnected economic environment. These frameworks have reduced trade barriers, making it easier for businesses to enter and operate in multiple African markets.

Companies like Flutterwave and Paystack, both Nigerian fintech firms, initially established themselves in the West African market before expanding across the continent. Jumia, Africa’s e-commerce giant, also started in Nigeria but quickly grew to operate in several African countries by leveraging regional logistics networks and adapting to local market conditions.

YAPILI, a Kenyan start-up, is another example of regional success. It launched a telemedicine platform to address local healthcare challenges and has since expanded across East Africa, gaining popularity in other African markets as well. Multichoice, a South African media and communications company, has similarly become a dominant player across Africa.

The success of these regional start-ups demonstrates how they can address critical needs and scale their solutions across neighbouring countries. By penetrating multiple African markets, these companies are bringing innovations, creating jobs, and fostering economic opportunities, while enhancing connectivity across the continent.

However, operating at a regional level presents challenges. These range from navigating diverse regulatory environments to managing cross-border logistics and adapting to varying consumer preferences. Such obstacles can hinder the growth of start-ups and, in turn, slow the region’s economic progress.

Despite these challenges, African start-ups have found ways to thrive. Many have formed strategic partnerships and collaborations that provide valuable insights into regional market dynamics, helping them mitigate risks in unfamiliar territories. These partnerships enable start-ups to tailor their products and services to meet specific market needs, building loyal customer bases and gaining market traction.

The rise of regional integration is supported by technological advancements and a growing entrepreneurial ecosystem, creating fertile ground for innovation and growth. As these start-ups contribute to Africa’s economic development and global presence, they prove that they can evolve from local enterprises into global players. As they continue to scale, they are poised to play a pivotal role in shaping Africa’s economic future and its position on the world stage.

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COMESA Secretary General Ms. Chileshe Mpundu Kapwepwe and the Head of the European Union Delegation to Zambia, Ambassador Alessandro Mariani jointly signed the agreement in the presence of the Zambia Minister for Commerce, Trade and Industry Hon. Christopher Yaluma.

The funds will be used to implement the COMESA Trade Facilitation Programme (CTFP) which aims at increasing intra-regional trade flows of goods, persons and services by reducing the costs/delays of imports/exports at specific border posts.

It will support trade policy liberalization, infrastructure improvements, improved border management and logistics among others.

Five border posts were pre-selected to begin implementing the programme due to their level of preparedness. They include: Mwami/Mchinji, between Zambia and Malawi; Galafi, between Ethiopia and Djibouti; Chirundu, between Zambia and Zimbabwe; Moyale between Ethiopia and Kenya and Tunduma/Nakonde between Tanzania and Zambia.

The CTFP is financed under the 11th European Development Fund.

Citizens of COMESA Member States and Tanzania will be the key beneficiaries, either directly or indirectly through their central, regional and local administrations or public or semi-public institutions.

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The team, which is made of representatives from the Public sector (Departments of Foreign Affairs, Youth, Trade and Entrepreneurship), Private Sector (Chamber of Commerce and Industry) and Associations (Citizens Engagement Platform), will be responsible for the collection and development of content relevant to women entrepreneurs.

Prior to the launch, the COMESA delegation paid a courtesy call to the Minister of Family Affairs Mrs. Mitcy Larue who underscored government commitment towards the successful implementation of the project.

The 50MWS is a three-year project funded by the African Development Bank, jointly implemented by three regional economic communities (RECs) i.e. COMESA, East African Community (EAC) and the Economic Community for Western African States (ECOWAS) in 38 African countries – member countries of the three regional bodies.

The objective of the project is to empower women entrepreneurs by providing access to financial and non-financial information relevant to develop and grow business.

The project will create a networking platform to connect women entrepreneurs and encourage peer-to-peer learning, mentoring as well as information and knowledge sharing.

The platform, which will be accessible on information communication technology (ICT) gadgets including mobile phones, will enable women to access business training, financial services and locally relevant business information, and mentors among other services to support the overall goal of enhanced financial inclusion of women, leading ultimately to increased economic activity in Africa.

Speaking during the official opening, the Principal Secretary of Family Affairs, Mrs. Marie-Josee Bonne highlighted the need for doing some work which contributes towards the empowerment of women.

“Although Seychelles has made progress by implementing policies that create an environment of equal opportunity, there is still room to ensuring that entrepreneurial landscape in our country is one that enables women to be more independent and enterprising.”

She also added that empowering women to create their own networks as well as providing them with the much-needed information has the potential to result in a multiplier effect. “The returns have the capacity to alter the way business is conducted as well as how governments create policies and the shape of employment on the continent”, added Mrs. Bonne.

Speaking at the same meeting, COMESA Director of Gender and Social Affairs and Head of Delegation Mrs. Beatrice Simwapenga Hamusonde underscored that the studies conducted separately by COMESA and African Development Bank (AfDB) revealed gender-specific challenges which are negatively affecting women entrepreneurs to develop or grow their business.

Some of the challenges include: Inadequate skills on business and export management, costing, pricing and packaging; Limited access to trade information and markets; Lack of linkages to finance lending institutions Limited knowledge and capacity to comply with standards and regulations; Lack of opportunities for mentorship and sharing of experiences; Lack of platform dedicated to the information needs of women entrepreneurs; and Limited access to information on investment opportunities.

Mrs. Hamusonde highlighted that the use of Information Communication Technology (ICTs) as an enabler will contribute to lessening some of the challenges affecting women to start or grow their businesses. This, therefore, led to the conceptualizing on the 50 Million African Women Speak Project.

The 50MAWS project is in line with provisions for women empowerment in the COMESA Treaty and Gender Policy; African Union Agenda 2063 and the Sustainable Development Goals (SDGs), especially goal 5: Achieve Gender Equality and Empower all women and girls. It is expected that this platform will impact millions of African women and create jobs for youth from the increased business activities, and capital flow.

Similar stakeholder engagements were conducted in Eswatini, Ethiopia, Djibouti, Madagascar, Malawi, Sudan, Zambia and Zimbabwe.

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Salama added to African Business magazine that Ethiopia ranked second with investments, valued at $3.6 billion. Direct foreign investments to COMESA countries amounted to $18 billion total.

The direct foreign investment inflows to Egypt were the largest, accounting for 42 percent of the total foreign investment directed to Africa in 2017, Salama clarified.

She mentioned that the direct foreign investment inflows declined by 23 percent to $1.43 trillion in 2017, compared to $1.87 trillion in 2016 worldwide.

Meanwhile, the direct foreign investment inflows to Africa declined by 21 percent to $42 billion in 2017.

Salama pointed out that the African Free Trade Agreement has increased investment in Africa, seeking to create a unified market for goods and services and facilitate the free movement of citizens across the African continent.

COMESA contains 20 countries, including Egypt, Kenya, Sudan, Mauritius, Zambia, Zimbabwe, Djibouti, Malawi, Madagascar, Rwanda, Burundi, Comoros, Libya, Seychelles and Tanzania, with total GDP valued at $1.2 trillion.

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