Today, despite decades of independence, Africa’s political map still reflects this imposed fragmentation, stifling the dream of true unity. According to the African Union (AU), intra-African trade accounts for just 16% of the continent’s total trade volume—a stark contrast to Europe’s 68% and Asia’s 59%. This is not just a statistic; it is a reality that defines Africa’s fractured economic and political landscape.

READ ALSO: The Role of African Union in Promoting Intra-African Cooperation

African Union or African Disunion?

The AU, established in 2001 to replace the Organisation of African Unity (OAU), was envisioned as the bedrock for African solidarity. Yet, two decades later, the vision of a politically and economically integrated Africa remains elusive. While the AU has made strides in conflict resolution, notably in the Central African Republic and Sudan, its efforts are frequently hamstrung by nationalistic interests and external interference.

The 2019 signing of the African Continental Free Trade Area (AfCFTA) was heralded as a game-changer, promising a $3.4 trillion economic bloc (World Bank, 2021). However, logistical barriers, infrastructural deficits, and policy inconsistencies continue to hinder its full implementation. With only 47 out of 54 African nations having ratified the agreement (UNECA, 2024), scepticism lingers over whether Africa’s leaders are genuinely committed to dissolving the economic borders that inhibit progress.

Economic Fragmentation

Despite their collective wealth in natural resources, African economies remain fragmented. The lack of regional economic integration exacerbates Africa’s vulnerability to external shocks. The COVID-19 pandemic exposed this harsh reality, as African nations struggled to secure medical supplies due to over-reliance on foreign imports.

The World Trade Organisation (WTO) reported that Africa’s share in global trade remains at a dismal 2.7% (2023), a telling sign of the continent’s failure to harness its collective strength. In contrast, China, a single country, commands over 12% of global trade. This economic isolation is reinforced by infrastructural inadequacies; the African Development Bank (AfDB) estimates that Africa requires $130-$170 billion annually in infrastructure investments to bridge this gap. Without a unified economic strategy, Africa remains a patchwork of struggling economies rather than a formidable global player.

Political Fragmentation

African unity is further undermined by political fragmentation. Borders, drawn by European rulers with little regard for African realities, continue to ignite ethnic and territorial conflicts. The Tigray conflict in Ethiopia, the Anglophone crisis in Cameroon, and the perennial instability in the Democratic Republic of Congo (DRC) all bear the imprint of colonial border legacies. According to the Armed Conflict Location & Event Data Project (ACLED), Africa accounted for over 37% of global conflict events in 2023.

Despite initiatives such as the AU’s “Silencing the Guns” agenda, political instability remains a formidable roadblock to unity. Without addressing the underlying causes of these conflicts, many of which stem from historical injustices tied to borders, Africa will struggle to achieve genuine unity.

The Cultural Paradox

Africa is a continent of deep cultural connectivity. With over 2,000 languages spoken and shared historical narratives, the foundation for unity is stronger than its artificial borders suggest. The Swahili language, spoken by over 200 million people, has been championed as a potential unifying linguistic bridge (UNESCO, 2023). Yet, linguistic divisions, reinforced by colonial legacies, persist. Francophone, Anglophone, and Lusophone nations often engage more with their former colonial masters than with their African neighbours.

The push for cultural re-Africanisation, including initiatives to revive indigenous governance systems and promote pan-African education, remains an untapped resource in forging a truly united continent.

Between Idealism and Pragmatism

Can Africa ever achieve true unity? The answer lies in a blend of idealism and pragmatism. A complete erasure of borders is unrealistic; however, redefining these borders to transform them from barriers into bridges is achievable. Economic integration through full implementation of AfCFTA, political coordination through stronger AU governance mechanisms, and infrastructural interconnectivity via projects like the Trans-African Highway Network (AU, 2023) can pave the way for a more unified Africa.
Moreover, decolonising the African mindset—embracing an identity beyond imposed nationalities and fostering a pan-African consciousness—is essential.

The Dawn of a Borderless Mindset

As Africa stands at the crossroads of unity and fragmentation, the need for a borderless mindset is more critical than ever. An African proverb reminds us that when spider webs unite, they can tie up a lion. If African nations can weave together their economies, policies, and cultures, they can subdue the lion of disunity that has long hindered progress.

True unity may not mean the dissolution of borders but rather transcending them—a unity not just of geography but of purpose, vision, and destiny.

The question remains: will Africa rise above the scars of colonial cartography and chart a new path for itself? The answer lies not in external interventions but in the collective will of its people and leaders to turn the dream of unity into reality.

The post Africa’s Fragmented Nations and the Quest for Unity appeared first on African Leadership Magazine.

Implementing a central currency for Africa could substantially enhance trade and investment by reducing reliance on foreign currencies, lowering transaction costs, and facilitating smoother cross-border trade. It could stabilise volatile currency markets, attract both local and foreign investors, and provide a predictable financial framework supported by critical minerals.
Additionally, a unified currency would empower African nations to negotiate more effectively in global resource markets, potentially increasing their share of global energy investments. By aligning a new currency with its critical mineral reserves, Africa could also better support clean energy initiatives, addressing its $400 billion annual funding gap for such projects and strengthening its role in the global energy transition.

READ ALSO: Currency Convergence: The Case for a Unified African Monetary System

The challenges in implementing the African Unitary Currency (AUA) are significant, including political and economic fragmentation across the continent. Aligning the diverse interests of 54 nations is a diplomatically complex task. Establishing currency standards that peg the AUA to mineral reserves is further complicated by variations in local currency values and mineral quality.
The risk of speculation and instability due to fluctuating mineral markets could affect currency valuation. Moreover, building trust among member states in the AUA requires transparent processes and strong financial governance to ensure collective confidence in the currency’s backing and application.

The introduction of the African Union’s proposed single currency, the Afro, requires a multifaceted approach to ensure its stability and widespread adoption. A phased introduction is recommended, allowing for a gradual rollout and testing in controlled environments before full deployment. This approach enables the identification and mitigation of potential issues, making it possible to adjust and refine the process based on early outcomes. Furthermore, the establishment of a regional central monetary authority is crucial for managing the Afro’s value, controlling inflation, and maintaining monetary policy consistency across member states.

To further bolster the Afro’s credibility, regular audits and transparent reporting on the backing minerals and financial reserves are essential. These measures will reassure member states about the currency’s stability, encouraging broader adoption and fostering confidence among stakeholders. Moreover, capacity-building and educational initiatives are vital for enhancing understanding and securing public support for the new currency. Comprehensive educational campaigns can help stakeholders understand the Afro’s operations, benefits, and challenges, mitigating resistance and ensuring a smooth transition to the single currency. By adopting these strategies, the African Union can effectively introduce the Afro, fostering economic integration, stability, and growth across the continent.

While the journey toward establishing a central regional currency is fraught with challenges, the long-term vision is one of a brighter, more interconnected, and economically resilient Africa. The potential benefits of the AUA — improved intra-African trade, stabilised currency markets, and increased investment in clean energy — paint a promising picture for the continent.

If successfully implemented, the AUA could herald a new era of unity that not only propels Africa towards economic self-sufficiency but also strengthens its voice in global affairs. The drive towards a shared currency embodies the spirit of collaboration and progress that Africa needs, offering a pathway to elevate its nations and create a more promising future for generations to come. In the quest for unity, unlocking Africa’s vast mineral wealth is not just an economic opportunity; it is a symbol of hope and shared prosperity.

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Despite the continent’s rich natural resources and agricultural potential, intra-African trade has historically been low compared to other regions. According to the African Development Bank, intra-African trade accounted for just 17% of Africa’s total trade in 2020, a figure far below the intra-regional trade seen in Europe (69%) and Asia (59%). Strengthening trade relations between African countries could stimulate agricultural productivity and drive economic growth across the continent.

READ ALSO: Strategies to Boost Intra-African Agricultural Trade Connectivity

Africa, despite possessing some of the most fertile land in the world, falls short in agricultural output per hectare. This is largely due to outdated farming practices, limited access to technology, inadequate infrastructure, and underdeveloped value chains. Many African farmers struggle to access markets beyond their borders, hindering their ability to benefit from economies of scale or diversify their crop production.

Intra-African trade can help overcome many of these challenges by improving market access, fostering regional value chains, and enhancing agricultural productivity through collaboration. The African Continental Free Trade Area (AfCFTA), launched in 2021, is a significant step forward in achieving these goals by removing tariffs and non-tariff barriers, simplifying customs procedures, and promoting regional cooperation.

Enhanced Market Access

Diversifying export opportunities allows farmers to reduce their dependence on local markets, which are often volatile and limited. For example, Kenya’s export-oriented horticultural sector can sell fresh produce to West African countries, where demand for high-quality fruits and vegetables is growing. Similarly, maize and grain-producing countries such as Zambia and South Africa can benefit from selling to regions like the Horn of Africa, which frequently faces food insecurity.
Intra-African trade also fosters the development of regional value chains that focus on each country’s strengths. Specialisation in particular crops or livestock enables more efficient agricultural production. For instance, Egypt and Morocco are major producers of cereals, Ethiopia is renowned for its coffee, and Côte d’Ivoire is one of the largest producers of cocoa.

By developing value chains that span multiple countries, Africa can create more efficient systems for processing, packaging, and distributing agricultural products. Cross-border investments in infrastructure, such as roads, railways, and storage facilities, will ensure these goods reach markets promptly and in optimal condition. For instance, establishing agro-processing hubs in West Africa could enhance the value-added output of products like cocoa and shea nuts.

Knowledge Sharing and Technology Transfer

Intra-African trade is also a powerful vehicle for technology transfer and knowledge exchange. Countries with successful agricultural models and technologies can share their expertise with neighbouring nations. For example, South Africa’s success in irrigation and mechanisation could be expanded to drought-prone areas of East and North Africa.

Attracting Investment

With increased intra-regional trade, Africa’s agricultural sector becomes a more attractive destination for investment. Governments, multinational corporations, and private investors are more likely to invest in agriculture when they see a larger, more integrated market. Intra-African trade agreements like AfCFTA simplify the process for foreign and domestic investors, allowing them to expand their reach to a wider pool of consumers.

Intra-African trade holds the key to unlocking Africa’s agricultural potential. By enhancing market access, fostering regional value chains, facilitating knowledge exchange, and attracting investment, intra-African trade can catalyse a transformation in the agricultural sector, boosting productivity, reducing poverty, and improving food security. As Africa continues to pursue economic integration through initiatives like the African Continental Free Trade Area, intra-African trade will undoubtedly play a crucial role in driving sustainable growth across the continent.

The post The Role of Intra-African Trade in Boosting Agricultural Productivity appeared first on African Leadership Magazine.

Intra-African trade has been on the rise, reaching $192 billion in 2023—a 7.2% increase from the previous year, and accounting for 15% of all African trade, up from 13.6% in 2022.  However, compared to global trade, intra-African trade actually declined slightly from 14.5% in 2021 to 13.7% in 2022.

The predominant mode of transportation for intra-African trade is road transport, responsible for over 90% of goods transported within the continent. This highlights the critical importance of road networks and the urgent need to keep them functional. Unfortunately, the state of many African roads is dismal and inadequate.

Africa ranks lowest globally in road infrastructure development, including quantity, quality, cost, and access. Excluding South Africa, Africa has approximately 171,000 kilometres of paved roads—a fraction of what is necessary for efficient transportation. Among the paved roads, most are in fair condition at best, while 85% of rural feeder roads are in poor condition, becoming impassable during the rainy season.

This situation stems from systemic negligence by the authorities responsible for road maintenance. Corruption among public officials has contributed significantly, as funds allocated for infrastructure development are often misappropriated.

Furthermore, some African nations lack the financial capacity to develop and maintain extensive road networks. Building infrastructure requires substantial capital and continuous investment in maintenance and management. Many countries are already burdened with debt, directing much of their revenue toward debt servicing rather than critical infrastructure projects.

The dire state of road infrastructure has led to partnerships between governments, NGOs, and private businesses. While government bodies remain the primary providers of road infrastructure, the involvement of the private sector has alleviated some of the burden and improved efficiency for businesses across Africa. Although private sector participation often comes with incentives, this collaboration benefits all parties.

To address these challenges, transparency and accountability among public officials are crucial. Elected leaders must uphold their responsibilities, ensuring that infrastructure projects are not only funded but also completed. If officials fail to meet their obligations, the provisions of each country’s constitution should be enforced rigorously.

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African leaders must prioritise the provision of reliable road infrastructure to improve mobility within the continent and enhance logistics in intra-African trade. Initiatives like the African Continental Free Trade Area (AfCFTA) will depend heavily on well-developed road networks to achieve their full potential. Developing alternative transport modes, such as rail networks, will also be vital for the AfCFTA’s success.

Africa has the potential to compete with regions like Asia and Europe in trade and commerce. However, to unlock this potential, African leaders must commit to building robust road infrastructure to support intra-African trade. As the world pursues economic growth, it is crucial for Africa to strengthen its road networks for a more integrated and prosperous continent.

The post The Future of Trade: Africa’s Transport Networks appeared first on African Leadership Magazine.

The introduction of the BRICS banknote aims to strengthen collaboration and facilitate trade among member nations, promoting financial stability and offering an alternative to the Western-dominated financial system. This development is significant for Africa, where several countries, including newly added members like Nigeria and Algeria, have strong financial ties to Western powers.

During the Russia-Ukraine war, Russia faced numerous economic sanctions from the European Union and other international institutions. In response, Russian President Vladimir Putin stated, “The dollar remains the most important tool in global finance, but using it as a political weapon undermines trust in the currency. If they (the West) block us, we’ll find alternatives.” This sentiment paved the way for the BRICS banknote, whose primary goal is to simplify cross-border transactions among member states.

The banknote has the potential to provide a more stable medium for trade by reducing transaction costs and time, particularly given the currency volatility and exchange rate risks prevalent in Africa. Businesses trading across African nations could benefit from settling payments in a common currency, thereby reducing currency conversion expenses and uncertainties.

The introduction of the BRICS banknote could also strengthen regional economic ties by fostering closer collaboration among BRICS nations and promoting economic growth. A common currency would allow countries to better align their economic policies and reduce trade barriers, potentially increasing intra-African trade. This, in turn, could improve supply chain efficiencies and enable countries to leverage one another’s economic strengths.

However, the effective utilisation of the BRICS banknote faces several challenges, including political instability, varying economic conditions, and differing regulatory frameworks among member states. Historical tensions, divergent political agendas, and competition for resources could further hinder cooperation. Additionally, the initiative could strain relationships between BRICS nations and Western powers, highlighting the need for open dialogue and a framework that promotes mutual benefit.

The BRICS banknote could also influence trade policies across Africa by encouraging African nations to align their trade frameworks with BRICS objectives. This focus on the BRICS currency might prompt African nations to develop their own regional currencies, bolstering economic sovereignty and reducing dependency on foreign currencies.

The implications of the BRICS banknote for intra-African trade are significant and multifaceted. By streamlining transactions, fostering regional cooperation, and influencing trade policies, this initiative has the potential to enhance economic integration across the continent. However, successful implementation will require overcoming challenges related to political trust and economic alignment.

As Africa continues to shape its economic future, the BRICS banknote could serve as a catalyst for a more interconnected and prosperous trading environment. In the long term, this initiative could not only bolster intra-African trade but also position the continent as a key player in the global economy, leveraging its abundant resources and youthful population.

The post BRICS Banknote: The Implications Banknote on Intra-African Trade appeared first on African Leadership Magazine.

The event was at the inaugural Intra-African Trade Fair (IATF) 2018 holding in Cairo, Egypt, where the IATF Deals Processing Centre recorded transactions in excess of the initial target of $25 billion in signed trade deals, reaching $27 billion by the end of the weekend.

Organized by the African Export-Import Bank (Afreximbank), in partnership with the African Union Commission (AUC) and hosted by the Government of Egypt, the IATF is being attended by almost 1,100 exhibitors showcasing their goods and services to an estimated 70,000 visitors at the Egypt International Exhibition Centre. It is being accompanied by the IATF 2018 Conference.

An elated Afreximbank President Prof Benedict Oramah while responding to the investment drive said, “We are proud to witness this indication of what the African Continental Free Trade Area (AfCFTA) Agreement can yield for intra-continental trade. By bringing together buyers and sellers under one roof, in the first intra-African trade fair of its nature on the continent, Afreximbank is succeeding in facilitating the transformation and integration of African economies.”

The second day of the trade fair featured conference engagements on Improving the Environment for Enhancing Intra-African and South-South Trade Financing; Making Intra-African Trade work for Business–Views from Practitioners; and the Creative Africa Exchange (CAX) Summit.

The CAX Summit is a flagship event launched at IATF with the purpose of serving as a vehicle for Africa to grow its knowledge and capacity for intra-continental trade within the creative and cultural industry. The event opened with a performance by Nigerian singer, WAJE, and featured special guest perspectives from creative industry greats such as D’Banj, an IATF 2018 ambassador, award-winning musician and CEO of GOOD Music; Rita Dominic, also an IATF 2018 ambassador, award-winning actress and producer; The Audrey Silva Company; Abiola Oke, a Publisher and CEO of OkayAfrica; and award-winning actress Mumbi Maina.

In an address at the CAX Summit, Prof Oramah questioned the lack of African participation globally in the arts and why Africa continued to play in the periphery “when Africa is art and Africa created art”. He highlighted the artistic achievements of Africans over the centuries and encouraged IATF participants to be active in the transformation of the creative industry as part of a holistic approach to transforming all industries in Africa.

The IATF ends on Monday with plans to host the next edition in 2020.

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In this regard, a two-day meeting will be held next week in Nairobi, Kenya, which will bring together business leaders from all Africa, said the AU through a statement.

The meeting will focus on a quick follow-up of the implementation of the Free Trade Agreement (AfCFTA), as well as the preparation of the investment community in the continent with a view to appropriately exploiting the potential of this agreement.

According to the African Union, the meeting is timely and relevant to face the obstacles existing in promoting intra-African exchange.

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