African businesses must forge deeper regional partnerships to capitalize on continental integration opportunities, according to a leading trade specialist who argues the continent has no choice but to eliminate economic barriers.
Dr. Fareed Arthur, Executive Consultant at the Africa Trade Capacity Centre, says strategic collaborations represent the most effective pathway toward achieving the African Continental Free Trade Area’s ambitious goals of creating a unified market across 54 nations.
“To thrive in a borderless market, African businesses must prioritise regional partnerships, align with cross-continental regulatory standards and leverage their competitive advantages,” Arthur said while addressing opportunities within the AfCFTA framework.
The trade expert emphasized that substantial progress has occurred since the continental trade agreement launched in 2021, describing it as “a definitive game-changer that is poised to transform the continent into a powerful economic bloc.”
Arthur highlighted stark value capture gaps that illustrate Africa’s unrealized economic potential. The global cocoa industry generates over $150 billion annually, yet African producers like Ghana and Côte d’Ivoire capture only $6 billion despite dominating production volumes.
Similar patterns exist across other sectors. “Every mobile phone has a component sourced from Africa, yet none are manufactured here,” Arthur noted, describing this as a significant missed opportunity for value addition and industrial development.
The consultant argues that transforming Africa from a political union into an economic powerhouse requires sustained commitment to internal trade, industrialization and moving beyond raw material exports toward finished products.
Small and medium enterprises represent a particular focus area, with Arthur suggesting these businesses hold the key to unlocking intra-African commerce. SMEs often possess the flexibility to adapt quickly to new market conditions and regulatory frameworks.
Arthur also pointed to Africa’s expanding digital economy as a growth driver, particularly among younger demographics who are rapidly gaining expertise in technology services and online commerce.
