By Ashiadey Dotse
The World Bank says the African Continental Free Trade Area (AfCFTA) has the potential to significantly transform Africa’s economy, raising real incomes by 7 to 9% and lifting up to 40 million people out of extreme poverty by 2035.
The AfCFTA, launched in January 2021 by member states of the African Union, aims to create a single market for goods and services across the continent.
However, in its April 2026 Africa Economic Update, the World Bank noted that the full benefits of the agreement have not yet been realised.
According to the report, unlocking the gains of the AfCFTA will require strong leadership from key countries, effective monitoring, and strict enforcement of trade commitments. It also highlighted the need for investment in shared infrastructure and regional systems.
“While tariff reductions under the AfCFTA will help intra-regional trade, the most significant constraints stem from internal trade costs,” the report said.
The Bank identified major challenges, including poor transport and logistics systems, inefficient customs procedures, limited digitalisation, and high domestic costs for finance and trade.
It also pointed to the continued presence of non-tariff barriers, such as selective export bans, which are slowing progress.
The report further recommended that the next phase of the agreement should focus on investment rules, intellectual property, competition policy, and increasing the participation of women and young people in trade.
Despite its strong potential, the World Bank warned that progress under the AfCFTA is likely to be gradual due to the high cost of investments and the need for deep reforms in institutions and regulations.
Overall, the report suggests that while the AfCFTA offers a major opportunity for economic growth and poverty reduction in Africa, achieving its full impact will depend on sustained commitment and practical implementation by member states.
