Lagos: Mr. Alexander Kwame Nketia, a member of the AfCFTA Committee on Trade in Services, highlighted the transformative potential of the African Continental Free Trade Area (AfCFTA) in reshaping Africa’s economic landscape. As the largest free trade area globally by number of countries, AfCFTA symbolizes a significant stride towards Africa’s economic sovereignty and self-sustained growth.
According to Ghana News Agency, Mr. Nketia emphasized that AfCFTA is more than a trade agreement; it is a catalyst for integration, tourism promotion, and job creation across Africa. Speaking at the inaugural Intra-African Trade Expo in Lagos, Nigeria, he noted the widespread adoption of the agreement, initially signed in Kigali in March 2018, with 54 out of 55 African Union member states having signed and 47 ratified.
AfCFTA consolidates a market of 1.4 billion people with a combined GDP exceeding USD 3.5 trillion. The agreement aims to increase the continent’s intra-African trade share, currently at a mere 14 percent, by eliminating tariffs, reducing non-tariff barriers, and facilitating efficient cross-border trade. The AfCFTA Secretariat, headquartered in Accra, has launched significant initiatives like the Pan-African Payment and Settlement System (PAPSS) and the African Trade Observatory to streamline trade data and transactions.
Mr. Nketia, who also serves as the Director for Product Development and Investment at the Ghana Tourism Authority, highlighted tourism’s vital role within AfCFTA’s services sector. He pointed to tourism’s potential as a driver of inclusive economic growth and cross-cultural connections, leveraging AfCFTA to foster cooperation and co-marketing among African destinations.
He also discussed the Ghana International Expo and Investment Forum’s role in enhancing bilateral engagement and tourism-related investments. Organized by the Ghana Tourism Authority in collaboration with Judi Consult and other government bodies, the forum underscores the collaborative spirit between Ghana and Nigeria in advancing regional tourism and enterprise.
Under the AfCFTA framework, Ghanaian chocolate producers can now export duty-free to Kenya, Kenyan florists deliver flowers to Lagos without incurring 35 percent tariffs, and Rwandan coffee has penetrated South African retail markets. However, Mr. Nketia acknowledged challenges such as incomplete rules of origin, infrastructure gaps, and limited awareness among SMEs on leveraging preferential tariffs.
The AfCFTA Secretariat reports some African trade corridors face inflated costs by up to 30 percent due to inadequate transport infrastructure. Despite these challenges, 72 percent of non-tariff barrier complaints lodged via the AfCFTA platform have been resolved within 30 days. Key growth sectors identified include agro-processing, digital services, green energy, and logistics, with a USD 10 billion AfCFTA Adjustment Facility approved to aid transitions in these areas.
Mr. Nketia urged African governments to finalize the rules of origin by December 2025, expedite the Adjustment Facility, and publish user-friendly tariff guides. He encouraged the private sector to actively pilot, iterate, and scale initiatives despite less-than-ideal conditions.
Supporting institutions from Ghana included the Ministry of Foreign Affairs, Ministry of Trade, Ghana Enterprises Agency, and others. Nigerian collaborators such as the Lagos State Ministry of Tourism, NASSME, NASSI, and representatives from the Africa Movie Awards also played essential roles.