5 March 2025 - In a rapidly evolving global trade landscape, Africa's integration and trade prospects face significant challenges and much uncertainty. This was the topic of discussion at a Development Policy Seminar on 27 February 2025.
Moderated by Shantanu Mukherjee, Director of UN DESA¡¯s Economic Analysis and Policy Division, the seminar featured a presentation by Trudi Hartzenberg, Executive Director of and a member of the UN Committee for Development Policy (CDP).
Africa in the global trade context
Global trade faces extraordinary challenges as multilateral frameworks are under increasing pressure and unilateral trade measures become more widespread. These shifts have created an uncertain environment for African countries, which must navigate complex trade dynamics shaped by competing global interests.
Regional integration and the African Continental Free Trade Area (AfCFTA)
Africa's trade remains mostly commodity-based, with limited intra-African trade. The African Continental Free Trade Area (AfCFTA) has set ambitious goals for pan-African trade, building upon existing subregional Free Trade Areas (FTAs) and customs unions. However, this approach has introduced significant complexity. Implementation has been delayed as negotiations continue on tariffs, rules of origin, trade in services, various protocols, and the interoperability of different regimes.
Trudi Hartzenberg underscored the need to address logistical constraints, streamline border processes, and align domestic policies with continental commitments to realize the full potential of the AfCFTA. She also highlighted the critical role of infrastructure development, especially in ports and transportation corridors.
African Growth and Opportunity Act (AGOA)
The AGOA, which provides eligible sub-Saharan African countries with duty-free access to the U.S. market, has supported African countries¡¯ economic growth and prosperity by boosting industrial and agricultural exports. However, its future remains uncertain beyond its expiration in September 2025. The seminar explored legislative efforts to renew AGOA, African countries¡¯ experience with its provisions, and proposed changes to improve eligibility criteria as well as customs processes.
Looking forward
The seminar concluded with a discussion on Africa's trade prospects. Participants emphasized the importance of stronger policy alignment and coordination among regional economic communities, as well as the need to leverage external partnerships for investment. Multilateral institutions, including the United Nations, play a crucial role in supporting Africa¡¯s trade agenda through capacity-building and advocacy for fairer global trade rules.
For more information, visit the website of UN DESA¡¯s Economic Analysis and Policy Division.