Economic group flags policy, infrastructure, capacity gaps as key hurdles to AfCFTA implementation

Jacob Kotcho, Director of Common Markets at the Economic Community of Central African States (ECCAS), has identified critical obstacles hindering the effective operationalization of the African Continental Free Trade Area (AfCFTA) during a virtual presentation on the state of the agreement on Monday.

Addressing participants at Pamodzi Hotel, Kotcho outlined four main challenges: policy coherence, infrastructure gaps, limited institutional capacity, and geopolitical factors.

On policy coherence, he emphasized that discrepancies between national trade laws and continental regulations often create operational hurdles for producers and service providers.

“If rules for market access at the national level differ from those at the continental level, producers face significant challenges in leveraging AfCFTA benefits,” he said, stressing the need for alignment of trade policies with broader industrial and agricultural strategies.

Infrastructure limitations, particularly in transport, logistics, and digital systems, were highlighted as major impediments to cross-border trade.

Kotcho noted that insufficient roads, inefficient port and airport systems, and underdeveloped digital infrastructure raise costs and slow the movement of goods and services across the continent.

He further stressed the importance of strengthening quality infrastructure, including standards and conformity assessment, to enable equitable access to expanded markets.

Kotcho also highlighted capacity and financing challenges, pointing out that implementing AfCFTA requires significant human and financial resources at both national and regional levels.

“We need to build local capacity and mobilize funding to ensure African ownership of the process,” he said.

He acknowledged geopolitical risks, citing unpredictable global trade policies that can affect African exports, and urged African countries to navigate these external pressures carefully.

He emphasized that addressing these challenges was crucial for AfCFTA to achieve its promise of boosting intra-African trade, industrial development, and economic integration.

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