Lagos: Mr. Alexander Kwame Nketia, a member of the AfCFTA Committee on Trade in Services, has highlighted the African Continental Free Trade Area (AfCFTA) as a significant step towards achieving Africa’s economic independence and sustainable growth. He emphasized that the agreement is more than just a trade deal; it is a historic catalyst for deeper integration, tourism promotion, and job creation across the continent.
According to Ghana News Agency, Mr. Nketia expressed that AfCFTA represents a strategic shift, prioritizing internal growth over external dependency. Speaking at the inaugural Intra-African Trade Expo in Lagos, Nigeria, he noted that the trade pact, now the largest free trade area globally by country count, has been widely adopted since its signing in Kigali in March 2018. Currently, 54 out of 55 African Union member states have signed, with 47 having ratified the agreement, creating a market that encompasses 1.4 billion people and a combined GDP of over USD 3.5 trillion.
Mr. Nketia stated that AfCFTA aims to increase the low intra-African trade share, currently at 14 percent of the continent’s total trade, by eliminating tariffs and reducing non-tariff barriers. The Secretariat, based in Accra and led by Secretary-General H.E. Wamkele Mene, has launched major initiatives like the Pan-African Payment and Settlement System (PAPSS) and the African Trade Observatory to enhance trade efficiency. PAPSS is expected to save the continent an estimated USD 5 billion annually by facilitating local currency transactions.
As Director for Product Development and Investment at the Ghana Tourism Authority, Mr. Nketia emphasized the critical role of tourism within AfCFTA’s services sector, highlighting its potential to drive inclusive economic growth and foster cross-cultural connections. He pointed out the significance of the Ghana International Expo and Investment Forum, organized in collaboration with Judi Consult and other government institutions, as a new era of bilateral engagement and tourism-led investment.
Mr. Nketia illustrated examples of AfCFTA’s impact, such as duty-free shipments of Ghanaian chocolate to Kenya and tariff-free delivery of Kenyan flowers to Lagos. However, he acknowledged challenges like the need to finalize rules of origin, persistent infrastructure gaps, and low awareness among SMEs on leveraging preferential tariffs.
The AfCFTA Secretariat estimates that trade costs in some African corridors are inflated by up to 30 percent due to inadequate transport and logistics infrastructure. Despite these challenges, 72 percent of non-tariff barrier complaints submitted via the AfCFTA platform have been resolved within 30 days. Key sectors identified for growth include agro-processing, digital services, green energy, and logistics, with the newly approved USD 10 billion AfCFTA Adjustment Facility set to support transitions in these areas.
Mr. Nketia called on governments to finalize the rules of origin by December 2025, expedite the Adjustment Facility’s rollout, and publish user-friendly tariff guides at border posts. He urged the private sector to take initiative and adapt to the evolving trade environment. Supporting institutions include Ghana’s Ministry of Foreign Affairs, Ministry of Trade, and several other agencies, with Nigerian partners playing crucial roles in fostering regional cooperation.