In central Accra, a building flies the flags of dozens of African countries. It is the headquarters of the African Continental Free Trade Area, one of the most ambitious economic projects in the continent’s history.
The AfCFTA agreement was signed by African Union member states in Kigali, Rwanda, in March 2018. It entered into force in May 2019 after enough countries ratified it. Every African Union member except Eritrea has signed. Its aim is to create a single market for goods and services across Africa, reducing tariffs and trade barriers between African countries.
Why Accra
Ghana bid to host the secretariat and won in 2019. The government provided and furnished a building in Accra, which was handed over to the African Union in August 2020. The secretariat coordinates the implementation of the agreement, negotiations and dispute resolution.
The Secretary-General
Wamkele Mene, a South African trade negotiator, became the first Secretary-General of the AfCFTA secretariat in 2020.
Trading begins
Trading under the AfCFTA officially began on 1 January 2021. In practice, progress has been gradual, as countries must agree on rules of origin, tariff schedules and customs procedures. A Guided Trade Initiative launched in 2022 allowed a group of countries, including Ghana, to begin trading selected goods under AfCFTA terms.
Why it matters
African countries trade far less with each other than with the rest of the world. Much intra-African trade faces high tariffs, poor roads and railways, border delays and complex paperwork. The AfCFTA aims to change that, encouraging manufacturing and regional value chains.
Supporters say it could boost industrialisation, create jobs and increase African countries’ bargaining power. Critics warn that weaker economies could be flooded by imports from larger ones and that infrastructure and implementation lag behind the ambition.
Ghana’s opportunity
Hosting the secretariat gives Ghana diplomatic prestige and business attention. Ghanaian exporters could gain access to markets across Africa. The Pan-African Payment and Settlement System, launched in 2022, aims to let traders pay in local currencies across borders.
Challenges
Ghanaian businesses still face high costs of borrowing, power and transport, which limit their ability to compete. Implementation will take many years, and results will be judged in cargo at the borders.
The agreement covers a market of more than a billion people. The paperwork that will make it real is being written in a building in Accra.
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