AfCFTA Requires $411 Billion for Transport Upgrades to Boost Trade

The African Continental Free Trade Area (AfCFTA), a flagship initiative under the African Union’s Agenda 2063, has highlighted the need for an estimated $411 billion in transportation infrastructure to enhance intracontinental trade.

This was revealed by Antonio Pedro, Deputy Executive Secretary (Programme Support) at the Economic Commission for Africa (ECA).

The AfCFTA aims to establish a unified market for 1.3 billion people, with a collective GDP of approximately $3.4 trillion. Once fully implemented, it will become the largest free trade area since the World Trade Organisation (WTO) was formed in 1994.

Zimbabwe is among the early adopters of AfCFTA, recognising its immense market potential within a population exceeding 1.3 billion people and an economy valued in the trillions of dollars.

Speaking at the 2025 Conference of African Ministers of Finance, Planning, and Economic Development Committee of Experts in Addis Ababa, Ethiopia, Pedro emphasised that AfCFTA serves as both a roadmap for development and a significant political tool.

He underscored the importance of Africa presenting a unified voice, stating, “A prosperous Africa represents a thriving marketplace for businesses globally. Strengthening key economic foundations is essential to achieving this goal.”

This year’s conference is centred around the theme: “Advancing the Implementation of the Agreement Establishing the African Continental Free Trade Area: Proposing Transformative Strategic Actions.”

Pedro pointed out that Africa must overcome the inherited challenges of small, fragmented economies to unlock its full economic potential. He described AfCFTA as the culmination of more than six decades of efforts toward regional and continental economic integration.

“While we take pride in the progress made, the road ahead is still demanding and crucial,” he stated. “We remain committed to assisting our member states in achieving full regional integration, ultimately leading to the creation of the African Economic Community.”

Pedro emphasised that Africa’s current trade patterns reveal a significant imbalance. About 85% of the continent’s total exports are directed outside Africa, with over 60% of these exports consisting of primary commodities. In contrast, intra-African trade, though relatively smaller, is more diverse and centred around industrial goods.

“This is precisely where AfCFTA is set to make a transformative impact,” he said.

ECA’s latest economic assessments suggest that eliminating tariffs and non-tariff barriers within the continent, as outlined in AfCFTA’s framework, could boost intra-African trade by 45% by 2045 compared to a scenario without AfCFTA.

The primary beneficiaries of these anticipated trade expansions will be the agrifood and industrial sectors, fostering industrialisation, strengthening food security, and enhancing product diversification across African markets.

Pedro highlighted that AfCFTA’s implementation will necessitate significant investments in transportation infrastructure and equipment, estimating costs at $411 billion. A detailed study conducted in 2022 on the implications of the African Continental Free Trade Area for transport infrastructure and services provided key insights into these requirements:

• $4 billion for acquiring 135 vessels
• $25 billion for procuring 243 aircraft
• $36 billion for purchasing 169,000 rail waggons
• $345 billion for adding over 2.2 million trucks to support trade logistics

Enhancements in railway infrastructure and fleet capacity could increase intra-African trade via rail from the current level of less than 1% to nearly 7%, reflecting a projected growth of 5.5%.

Despite AfCFTA’s enormous potential, Pedro acknowledged a significant challenge: a lack of awareness among businesses, particularly small and medium-sized enterprises (SMEs), about its opportunities and benefits.

“The African private sector must be informed, engaged, and actively involved in making AfCFTA a reality. Trade within Africa cannot expand if businesses remain unaware of its provisions and fail to leverage its advantages,” he stressed.

Pedro emphasised that AfCFTA’s success hinges on a coordinated, inclusive, and proactive approach at all levels governments, businesses, and regional institutions alike.

AfCFTA represents a transformative shift for Africa, offering opportunities to deepen economic integration, drive industrialisation, and expand trade across the continent. However, unlocking its full potential will require substantial investments, strategic policy coordination, and strong private sector participation.