By Joseph BENSON & Fredrick AGBOMA (PhD)
Africa is at a defining crossroads. For decades, its economic fortunes have been shaped by external demand, volatile commodity markets, and fragile trade dependencies. But the tide is changing.
With the African Continental Free Trade Area (AfCFTA) now in force, the continent is turning inward, not as an act of retreat, but as a strategic pivot toward internal resilience.
Intra-African trade is now seen not only as a diversification tool, but also as a springboard to elevate African industries, amplify regional value chains, and reclaim ownership of the continent’s economic destiny.
The historical constraints of outward dependency
Historically, African economies have been structurally tethered to exporting raw materials and importing high-value goods. Ghana, for example, exports cocoa but imports most of its processed chocolate.
Nigeria exports crude oil but imports refined petroleum. This colonial-era trade legacy has had a stranglehold on industrial development. While external markets such as the United States, China, and the European Union have offered growth opportunities, they have also exposed African economies to external shocks, unpredictable tariffs, and shifting global demand.
During the COVID-19 pandemic, when global supply chains fractured and export demand plunged, African economies saw first-hand the limitations of external dependency.
According to the International Trade Centre (ITC), Africa’s exports to the rest of the world dropped by 16% in 2020. This underscored an urgent truth: sustainable economic resilience must begin from within.
The AfCFTA as a turning point
Enter the African Continental Free Trade Area, the most ambitious trade integration project since the founding of the African Union. AfCFTA, now backed by 54 of 55 African countries, creates a single market of 1.3 billion people with a combined GDP of over $3.4 trillion.
According to the African Development Bank (AfDB), full implementation of AfCFTA could boost intra-African trade by over 50% and lift 30 million people out of extreme poverty by 2035.
Already, tangible steps are being taken. The AfCFTA Secretariat, based in Accra, has launched pilot initiatives such as the Guided Trade Initiative (GTI), which facilitated the first commercial consignments of products among participating countries including Ghana, Kenya, Rwanda, Egypt, and Cameroon.
These early transactions, ranging from tea and ceramic tiles to batteries and processed foods, demonstrate the political will and logistical possibilities of continent-wide trade. It is a first step toward transforming Africa from a fragmented market into a dynamic, self-reliant trading bloc.
Ghana’s strategic position in the AfCFTA era
As host of the AfCFTA Secretariat, Ghana has a symbolic and strategic advantage. The country’s relatively stable democracy, expanding digital economy, and diversified export base place it at the forefront of Africa’s economic transformation.
Ghana’s Export Promotion Authority (GEPA) has outlined a national export strategy to align with AfCFTA, aiming to double non-traditional exports to US$25 billion by 2029. Key focus areas include agribusiness, pharmaceuticals, textiles, and information technology.
Additionally, Ghana has been proactive in building the necessary trade infrastructure. The Tema Port expansion, now the largest container port in West Africa, enhances maritime logistics, while initiatives such as the Paperless Port System and Integrated Customs Management System (ICUMS) improve customs efficiency. These systems reduce clearance times and costs, a key hurdles for intra-African commerce.
Sectoral opportunities and industrial recalibration
AfCFTA opens vast opportunities for Ghanaian enterprises, particularly SMEs and manufacturers. For example, the food processing sector, which faces high entry barriers in European and American markets, finds receptive demand across African borders. Ghanaian shea butter, cashew, processed cocoa, and pineapple juice products are well-positioned to serve regional markets.
Moreover, the pharmaceutical sector has room to grow, especially following supply shortages during the pandemic. Ghana’s pharmaceutical manufacturing sector, home to over 30 registered companies, can supply West Africa’s 400-million-person market with generic drugs, antiseptics, and medical consumables.
According to the United Nations Economic Commission for Africa (UNECA), full implementation of AfCFTA could increase Africa’s manufacturing output by more than 100% by 2035. This signals the urgent need for investment in industrial capacity, R&D, and vocational training.
Policy gaps and structural challenges
Still, challenges persist. Non-tariff barriers, such as differing product standards, cumbersome customs procedures, and underdeveloped transport corridors, hinder intra-African trade. A 2022 Afreximbank report identified that more than 60% of African businesses cite regulatory inconsistency and high transport costs as their primary barriers.
Policy harmonisation, therefore, is not optional, it is essential. Ghana must collaborate with ECOWAS and the AfCFTA Secretariat to push for unified standards, mutual recognition agreements, and dispute resolution frameworks that build trader confidence.
Moreover, trade facilitation must extend to digital infrastructure: cross-border e-commerce, digital payments, and logistics tracking systems are vital in ensuring the success of AfCFTA.
Entrepreneurship as the engine of regional growth
Entrepreneurs will be the real drivers of AfCFTA’s success. They are agile, locally grounded, and primed to identify regional niches. Ghana’s vibrant youth-led entrepreneurial ecosystem, ranging from agritech startups to fintech disruptors, can leverage AfCFTA to scale across borders.
This calls for deliberate investment in entrepreneurship education, seed funding, and market intelligence. Institutions like the Ghana Enterprises Agency and National Entrepreneurship and Innovation Programme (NEIP) are already making strides, but their efforts must be expanded and regionalised. Strategic partnerships with pan-African accelerators, business incubators, and diaspora networks can amplify these outcomes.
A Pan-African mindset and reclaiming economic sovereignty
AfCFTA is more than an economic instrument; it is a cultural and political statement. It embodies a Pan-African philosophy rooted in shared prosperity, self-reliance, and continental solidarity. Turning inward is not about isolation, it is about reclaiming control, building local value, and trusting African solutions.
This mindset will require consistent leadership and citizen engagement. Media, civil society, academic institutions, and the private sector must champion the narrative of African integration, making AfCFTA not just a policy document but a lived reality.
Conclusion: owning the future together
Ghana, like the rest of Africa, faces a rare historical moment. By turning inward, aligning national strategies with AfCFTA’s transformative vision, and investing in industrialisation, entrepreneurship, and trade facilitation, Ghana can anchor its economic future in regional strength. This shift represents not a retreat from globalisation but an evolution toward equitable and self-defined development.
The time to act is now. The structures are in place. The will is growing. What remains is for Ghana, and indeed Africa, to fully embrace the infinite game of intra-African cooperation, innovation, and sustainable prosperity.
Teaser for next article
In the upcoming article, “Rewriting the Rules – Entrepreneurial Innovation in a Changing World,” we will explore how Ghana’s entrepreneurs are leading the charge in innovation, utilising technology, sustainability, and adaptive business strategies to transform economic challenges into dynamic opportunities.
This article is part two of a five-part series titled “Tariffs, Trade, and Transformation: Playing the Infinite Game of African Enterprise.”
Joseph is an entrepreneur, a business development consultant, and philanthropist based in the USA but globally connected with world renowned companies. Passionate about education.
Dr. Agboma is a senior academic at Liverpool John Moores University and a scholar-practitioner in entrepreneurship and development policy. He recently completed a CODISERA Fellowship on education, enterprise, and regional development.
