By Kizito CUDJOE
Former Ethiopian Prime Minister, Hailemariam Dessalegn, has urged African governments to work together to tackle the barriers hindering intra-African trade.
Speaking at a public lecture in Accra to commemorate the fifth anniversary of the African Continental Free Trade Area (AfCFTA) Secretariat, Dessalegn stressed the need for collective action to address three major obstacles: inadequate infrastructure, complex regulations, and the absence of a common trading currency.
“Today, Africa’s financial systems do not facilitate easy currency convertibility or cross-border payments, which hampers trade,” Dessalegn said.
“For instance, a Kenyan business looking to buy goods from Ghana often has to first convert its money into US dollars before changing it into Ghanaian cedis because neither the Kenyan shilling nor the cedi is widely traded internationally. This process increases costs, delays, and risks.”
To counter these challenges, he emphasized the importance of regional payment systems that allow businesses to trade in their own currencies, streamlining regulatory hurdles.
Dessalegn also lamented Africa’s long-standing practice of exporting raw materials to Europe while importing finished goods made from those very resources – a cycle he believes is detrimental to the continent’s economic growth.
Despite these challenges, he commended the progress made under AfCFTA, citing an increase in intra-African trade from US$140 billion in 2017 to US$190 billion in 2023.
However, he noted that intra-African trade still accounts for just 15 percent of the continent’s total trade volume, compared to 50 percent in Asia.
To unlock Africa’s trade potential, he called for urgent investment in transport corridors, the use of public-private partnerships to finance infrastructure, and the digitalization of trade processes.
“To achieve significant trade growth, we must invest in key transport corridors such as LAPSSET in East Africa, the Abidjan-Lagos route in West Africa, and the North-South Corridor in Southern Africa,” he said.
“We need to modernize customs procedures and double down on digital trade processes to eliminate delays and inefficiencies at borders,” he added.
Stressing the importance of trade and industrial policies, Dessalegn stressed the need to build production capacity and regional value chains to boost intra-African trade and achieve the African Union’s Agenda 2063 vision.
“A competitive Africa depends on what we produce, what we buy, and where we invest,” he noted.
“Building and buying African is not about mere patriotism—it requires implementing effective trade and industrial policies that support growth.”
He cautioned that trade agreements alone would not be enough to meet Africa’s economic transformation goals and urged the continent to take control of its economic future.
“AfCFTA is a pillar of Agenda 2063. The political will is evident—leaders have signed the agreements. Now, the real work begins,” he said.
“Making AfCFTA work is a once-in-a-generation opportunity to reshape Africa’s future. We must not waste it.”
AfCFTA Secretary-General, Wamkele Mene, also addressing the gathering, noted the secretariat’s achievements, including the establishment of a private sector unit to support small and medium-sized enterprises, particularly women-led businesses.
He pointed to efforts to simplify trade regulations and facilitate the movement of goods, especially in the agriculture and fisheries sectors.
Mene acknowledged that Africa must prepare for shifts in global trade policies, particularly those from the United States, which could impact programs like the African Growth and Opportunity Act (AGOA).
“We are entering an era of ‘me first, others last.’ Africa must confront this reality,” he said, adding that “the good news is that we have AfCFTA, and its legal foundation is strong.”
The lecture, themed “AfCFTA as a Catalyst for Agenda 2063: Seizing Opportunities in a Changing World,” emphasized the urgency for Africa to strengthen its trade frameworks and embrace collective action to drive economic transformation.
