Business leaders from all over Africa have become more and more positive in their perception of the African Continental Free Trade Area (AfCFTA) over time but they still express that a considerable amount of work needs to be done before this positivity can be converted into actual economic progress.
The most recent Pan-African Private Sector Trade and Investment Committee (PAFTRAC) Africa CEO Trade Survey, which was published in collaboration with African Business, reveals in detail how the executives from the private sector interpret the continent’s flagship trade initiative.
Survey results confirm that, the executives, believe the establishment of AfCFTA to be the one of the most important sources that could propel development and the integration of the economy in the region.
To begin with, the agreement sets the stage for the creation of a trade area with a GDP of $3.5 trillion by lowering both tariff and non-tariff barriers in almost all African countries.
However, there still remain significant issues that hinder the progress of the agreement despite the rising levels of awareness and enthusiasm for it. The most prominent of these issues are the failure to implement policies, political risks, and limitations on movement.
On the day of the panel discussion, December 10, 2025, PAFTRAC leaders and experts emphasized the point that, although businesses recognize one of the major advantages of the AfCFTA, the full-benefit is still not realized because the national and regional policies have not caught up with the framework.
According to Professor Pat Utomi, chairman of PAFTRAC, the survey depicts the increasing clarity of the trade scenario in a divided space, especially when firms have to cope with the shocks of the global economy.
One of the key insights is that African companies have become more and more dependent on intra-African trade for their survival and to be able to withstand external pressures such as global tariff wars. The Pan-African Payment and Settlement System, for instance, is being referred to as one of the tools that facilitate cross-border trade by making it less expensive and less cumbersome for businesses that operate in different markets.
The survey also points out that businesses consider trade issues far beyond the matter of tariffs only. Quite a few firms have started to pay attention to the issues of sustainability and digital transformation as their integral parts of trade competitiveness. The focus on sustainability is a reflection of the major trends in global trading and it also indicates that African companies are getting ready for the changes in market demand.
Nonetheless, the panel members argued that there are several barriers that stand in the way of the full potential of Africa trading internally such as the inefficient domestic production systems, political instability, and the high cross-border mobility costs. The high visa costs are among the real examples that were shared at the event and these charges prevent entrepreneurs and workers from moving easily between African markets thus making trade linkages weaker.
In addition to this, political risk was a topic that was discussed at length and came up as one of the major concerns. Most of African markets are characterized by abrupt policy changes when the governments change, which in turn makes long-term planning challenging for businesses. That unpredictability decreases investment, mainly by companies that intend to expand regionally under the AfCFTA umbrella.
On the bright side, the momentum is palpable and there is a general feeling that the ball is rolling. In particular, businesses in informal sectors have come up with creative tactics to overcome obstacles with the help of cross-border networks that provide the support to their operations. The survey ends with the view that although the targets set by the AfCFTA are far-reaching, the private sector’s increased participation and resilience are the key factors that could eventually lead to a successful implementation of the agreement.
