According to Wamkele Mene, the Secretary-General of the African Continental Free Trade Area (AfCFTA), announced that trade between African nations saw a historic surge in 2024, reaching $220 billion. This milestone was achieved primarily due to the significant momentum observed in the manufacturing and service sectors, as highlighted by the Secretary-General.
Speaking at the EU-Ethiopia Business Forum currently being held in Addis Ababa, the Secretary-General explained that trade relations among African countries have transitioned from their previously low levels to a much more promising era. According to Mene, the fact that the continent has begun to strengthen its internal market and reduce reliance on foreign markets represents a massive leap toward economic independence.
According to the report, the primary driver behind this $220 billion growth in trade volume is the productivity seen in the manufacturing sector. The shift from African countries merely exporting raw materials to exchanging value-added industrial products with one another is cited as the reason for the market’s expansion.
Mene noted that Ethiopia’s formal entry into this continental trade integration holds great significance for the region, stating that the country’s ongoing economic reforms and its entry into the AfCFTA create an opportunity for the nation to tap into a massive African market of 1.4 billion people with a combined GDP of $3.4 trillion. Ethiopia’s potential, particularly in textiles, leather products, and agro-processing, is expected to be a major asset to the continental market.
Among the factors that streamlined the trade exchange was the expansion of digital payment systems. Technological innovations that allow small-scale traders and farmers to easily conduct cross-border transactions have become the foundation for this continental trade success.
Additionally, modernizing customs procedures and removing legal barriers to trade have contributed significantly to these results. The Secretary-General further emphasized that at a time of global economic uncertainty, the AfCFTA is serving as a protective shield for African countries by providing a stable and rules-based trade framework. This has increased the confidence of foreign investors in Africa and paved the way for long-term investments.
Although the $220 billion achievement is encouraging, infrastructure shortages, rising transport costs, and bureaucratic bottlenecks across the continent continue to hinder the ability to utilize full capacity.
However, it is believed that the commitment shown by countries like Ethiopia and the structural changes they have initiated will inspire other nations as well. In the coming years, African trade is expected to shift from raw material trade to technology and knowledge-based exchange, which will enhance the continent’s competitiveness on the global trade stage. Overall, current reports indicate that the principle of “African solutions for African problems” is being practically demonstrated in the trade sector. The strengthening of the manufacturing sector will not only create job opportunities for millions of youth but also make the continent’s industrial transformation a reality.
