Africa Prosperity Network

Author: APN Communication Directorate

  • The AFCFTA: The Journey so far and ahead

    The AFCFTA: The Journey so far and ahead

    By H.E. WAMKELE MENE, SECRETARY-GENERAL, AFCFTA SECRETARIAT

    The African Continental Free Trade Area (AfCFTA), once an ambitious dream, has remarkably transitioned to become a reality, marking a significant milestone in Africa’s commitment to economic integration. Today, the AfCFTA stands as а testament not only to the continent’s ability to translate ambitions into actionable goals but also to its evolving role in the global economic sphere.

    The journey of the AfCFTA, from its inception to its current status, has been rapid and marked by high political momentum. This is evident in the actions and intentions at the highest levels of Government and Industry. Negotiated from 15 June 2015 to 21 March 2018, and culminating in the signing of the Framework Agreement along with the three Protocols on Goods, Services, and Dispute Settlement, the AfCFTA’s progression has been unprecedented. Today, as a fully fledged international organisation, it enjoys international recognition, being lauded as a game-changer in the political economy of Africa. The AfCFTA has undeniably become an integral part of any discourse on Africa’s economic future.

    As the world’s largest free trade area by the number of participating countries, the AfCFTA connects 1.4 billion people across 55 countries, with a combined Gross Domestic Product (GDP) of approximately US$3.4 trillion. Its full implementation promises an integrated African market for goods and services, alongside the free movement of people and capital, laying the foundations for a common market across the continent.

    Significant strides have been achieved in the ratification, negotiation, and implementation of the AfCFTA’s legal frameworks, including its foundational agreement and various protocols. Yet, the road ahead remains crucial for ensuring that the benefits of free trade under the AfCFTA are equitably distributed, contributing to the long-term prosperity of the continent.

    The implementation has probably felt long at times. We have exceeded deadlines. However, it is important to recognise the substantial progress we have made. The AfCFTA came into existence amid a global pandemic, a significant context that cannot be overlooked. The pandemic has had profound impacts on economies around the world, and Africa has been no exception. The economic fallout from this pandemic has been compounded by the ongoing conflict between Russia and Ukraine, adding layers of complexity to our journey.

    Looking to the future, and in line with the African Union’s broader integration goals, as outlined in Agenda 2063, the AfCFTA is a means towards the larger goal of creating a common market in Africa. Through the progressive elimination of trade and movement barriers, coupled with enhanced coordination and integration of economic policies, the AfCFTA is poised to lay the groundwork for a more deeply interconnected African economy. This forward movement is pivotal in realising the vision of an integrated African market.

    The journey so far

    As of December 2023, the AfCFTA has witnessed remarkable advancements in its journey towards unifying African economies. A total of 54 out of 55 African Union Member States have signed the agreement, with Eritrea as the lone exception. The ratification process has also progressed significantly, with 47 countries formally endorsing the agreement, leaving just eight to finalise their ratification.

    Significant progress has been made in the negotiations under the AfCFTA, which have been conducted in two distinct phases. The first phase, covering negotiations on trade in goods, trade in services, and the establishment of a dispute settlement mechanism, has largely been completed.

    The objective for trade in goods under the AfCFTA is to progressively liberalise 97% of tariff lines over a span of 5 to 13 years, commencing from January 1, 2021, which marks the official launch of trading under the preferential terms set by the AfCFTA. A major achievement in this area is the agreement on rules of origin for 92.3% of tariff lines, accounting for 95.5% of intra-Africa trade, thus providing a strong foundation for the AfCFTA framework.

    The development and distribution of necessary trading documents with enhanced security features have been completed, facilitating trade in African-made goods. However, negotiations are still ongoing for the remaining 7.7% of rules of origin, especially in the automotive and textiles sectors, to ensure comprehensive implementation of the protocol. Market access has also seen progress, with the adoption of 42 provisional schedules, tariff concessions and 22 service schedules of specific commitments, and an additional 26 service schedules are close to finalisation.

    With regard to the Protocol on Trade in Services, negotiations in the five priority sectors (financial, communication, transport, tourism, and business services) are underway, with plans for further liberalisation in seven more sectors.

    The AfCFTA Dispute Settlement Mechanism has been operationalised, providing a framework to resolve disputes arising from investment, trade in goods and services, or market access. This development is poised to enhance investment security in Africa for both domestic and foreign investors.

    The phase II Protocols on Competition Policy, Investment and Intellectual Property Rights have been concluded and adopted by the Assembly of Heads of State and Government of the African Union. These protocols are now open for ratification. The final two (2) Phase II Protocols, focusing on Digital Trade and Women and Youth in Trade, are expected to be adopted at the February 2024 African Union Summit. These protocols are key to fostering a more inclusive and digitally advanced trade environment.

    In anticipation of finalising all negotiations, especially those related to rules of origin and tariff concessions, the AfCFTA Secretariat launched the Guided Trade Initiative (GTI) in October 2022.

    This initiative, starting with seven State Parties and now positioned to include 31, has been vital in promoting intra-African trade and has helped to test the state of readiness and effectiveness of the legal framework of the AfCFTA instruments and institutional national systems in the participating countries, as well as identify possible future interventions to increase intra-African trade and maximise the benefits of the AfCFTA.

    Countries participating in the GTI have actively engaged in exports and imports under AfCFTA rules, using documents such as certificates of origin, customs declarations, and sanitary and phytosanitary certificates.

    The AfCFTA has actively involved the private sector, recognising its role as a key driver of economic growth. Towards this end, a strategy prioritising key sectors like automotives, pharmaceuticals, agro-processing, and transport and logistics has been implemented to maximise the benefits of the AfCFTA. Additionally, in collaboration with Zenith Bank Plc, the Secretariat is developing SMARTAFCFTA, a central data repository providing comprehensive trade-related information to unlock trade opportunities in Africa. Recognising its substantial potential in fostering regional value chains, creating employment, and driving structural transformation, a specialised Automotive Fund has been launched to support the development of the automotive sector priority area under the AfCFTA Private Sector strategy. This fund is designed to facilitate investments aimed at enhancing local content in the automotive value chain. Additionally, it aims to ensure the availability of consumer finance, thereby stimulating demand and supporting related insurance products.

    An AfCFTA Adjustment Fund has also been established and is designed to support both State Parties and the private sector in adapting to the major trade liberalisation brought about by the AfCFTA Agreement. As with any major trade liberalisation regime, the AfCFTA Agreement will introduce short-term disruptions, as tariff revenues by State Parties are reduced, industrial sectors are disordered, businesses and supply chains are reorganised, and employment is dislocated.

    For instance, the fund can be pivotal for countries facing challenges in sectors like textiles and clothing, providing financial assistance for worker retraining, recapitalisation, machinery procurement, or enhancing competitiveness. The Adjustment Fund is composed of three components: a Base Fund, a General Fund, and a Credit Fund, each serving distinct purposes in the adjustment process.

    Another notable achievement in the AfCFTA framework is the operationalisation of the Pan African Payment and Settlement System (PAPSS), a centralised Financial Market Infrastructure designed to facilitate the secure and efficient flow of funds across African countries, allowing them to trade in their own currencies. As of October 2023, the PAPSS boasts the participation of ten central banks, 50 commercial banks, and five switches. The growing involvement of additional countries is expected to enhance the system’s capability to support intra-African trade.

    An annual dialogue platform for the private sector and other stakeholders, known as “BIASHARA AFRIKA”, has been established at the continental level. The 2023 event, held in Cape Town under the patronage of President Cyril Ramaphosa, attracted over 1,200 physical and 2,000 virtual participants from various countries.

    The third Intra-African Trade Fair (IATF2023), held in Cairo in November 2023, featured 1,615 exhibitors from 61 countries and generated over US$40 billion in trade and investment deals. Algeria is set to host the fourth IATF in 2025, following Egypt and South Africa as previous hosts. 

    In a strategic move to support the agreement’s implementation, a 13-member AfCFTA Trade and Industrial Development Advisory Council has been established. This council is tasked with providing expert advice to the AfCFTA Secretariat on matters of trade integration and facilitation, industrial development and regional value chains, as well as inclusivity issues, crucial for the successful realisation of the AfCFTA objectives.

    At the national level, designated Competent Authorities have largely been appointed, and governmental structures are being reorganised to align with the AfCFTA objectives. National focal points are being established to address specific aspects of the agreement, such as non-tariff barriers. These focal points, alongside national and regional committees, are essential for ensuring coordinated and effective implementation across the continent. Most member states are actively engaged in this process, either finalising or developing their specific AfCFTA implementation strategies. They are also preparing their private sectors to capitalise on broader market access opportunities provided by the AfCFTA. 

    AfCFTA: Implementation Stage

    The AfCFTA is now in a crucial phase focused on practical implementation. To emphasise this priority, the African Union designated 2023 as the “Year of the AfCFTA” under the theme “Accelerating the Implementation of the AfCFTA”. This phase is crucial for transforming the agreement’s potential into tangible outcomes.

    The transition to a more practical phase in the AfCFTA involves several key developments. This is marked by the activation of key institutional mechanisms, integration of legal and regulatory frameworks, and the preparation of State Parties to actively participate in and derive benefits from the agreement.

    Notable achievements in this phase include the effective activation of AfCFTA’s institutional structures. The Council of Ministers and the Committee of Senior Officials have been operationalised, along with numerous committees and subcommittees dedicated to Goods and Services. The Dispute Settlement Body and the Appellate Body are also functional, enhancing the agreement’s governance. The establishment of the AfCFTA Review Mechanism represents another significant step in the evolution of the agreement’s institutional framework. The progress in these areas indicates a strong commitment to realising the AfCFTA’s vision of an integrated and prosperous African market. 

    AfCFTA: The Next Stage

    The AfCFTA aims to “lay the foundation for the establishment of a Continental Customs Union at a later stage,” a goal that signifies a deeper level of integration within the continent. This ambitious aim calls for the gradual merging of the existing Regional Economic Communities (RECs) Free Trade Agreements into a single, cohesive African trade area, complete with a common external tariff.

    Serving as both a stepping stone and a catalyst, the AfCFTA is systematically addressing the essential elements required to accomplish this goal with its variety of protocols and mechanisms. These initiatives play a critical role in promoting economic development and integration throughout the continent.

    Consequently, realising the goal of the Continental Customs Union requires the swift and effective implementation of the AfCFTA. This involves accelerating the completion of key technical details, including the schedules of concessions for trade in goods, rules of origin, and specific commitments for trade in services, all fundamental to the practical functioning of the AfCFTA. Furthermore, it is essential that all African countries that have not yet done to ratify the agreement without delay. A coordinated and collective approach across the continent is vital for the effective implementation of the AfCFTA, ultimately laying the groundwork for the future realisation of a Continental Customs Union. Additionally, the ratification and implementation of the AfCFTA by Africa’s four Customs Unions (CEMAC, EAC, ECOWAS, and SACU) are important, given their common external tariffs. Partial implementation could risk the integrity of these customs regimes.

    Beyond the goal of a continental Customs Union, the AfCFTA represents an essential step towards establishing a single or common market in Africa, aligning with the long-term objectives and commitments outlined since the Abuja Treaty. For a common market to function effectively, it is imperative for Member States to align their trade regulations, customs procedures, and standards. The AfCFTA offers a framework for this harmonisation, simplifying and enhancing cross-border business activities within the continent.

    In February 2023, the Assembly of Heads of State and Government of the African Union’s adoption of intellectual African Union’s adoption of three new protocols – covering investment, property rights (IPR), and competition policy – significantly broadened the scope of the AfCFTA. This expansion moves the Agreement beyond traditional free trade agreements and lays a robust foundation for an integrated market, involving the free movement of goods, services, people, capital, and investment.

    In this broader context, the AfCFTA should be seen as part of the larger African integration effort, which includes the African Union Protocol on Free Movement and the Single African Air Transport Market, among other initiatives. Progress towards an African single market involves not just trade integration but also the strengthening of these initiatives, such as the Protocol on Free Movement of Persons, a vital component of a common market.

    A Solid Foundation

    As we reflect on the journey of the AfCFTA so far and consider the steps necessary to advance to the next stage, it is evident that the AfCFTA represents a transformative milestone in Africa’s economic history. From its inception to its current phase of implementation, the AfCFTA has shown remarkable progress towards establishing a single market for goods and services to facilitate the continent’s economic integration in the pursuit of the Agenda 2063 of the African Union

    A solid foundation of the AfCFTA has been established through the negotiation and ratification of Looking ahead, the AfCFTA is not just an economic agreement but a vehicle for broader socio-economic transformation. It holds the promise of an integrated African market that supports sustainable development, inclusive growth, and poverty alleviation. The journey so far has laid a strong foundation, and the path ahead, while challenging, is replete with opportunities for a prosperous and integrated continent.

    In conclusion, the AfCFTA’s journey to date has been marked by noteworthy achievements and important lessons. As we progress into the next phase, it is imperative that all stakeholders – including governments, the private sector, regional organisations, and international partners maintain and strengthen their collaborative efforts. It is through this sustained cooperation and shared commitment that the full potential of the AfCFTA can be unlocked. This collaborative approach is key to fostering an era marked by robust economic integration and growth, as well as inclusive and sustainable development across the African continent towards sustained economic growth, job creation, and improved livelihoods for its people.

  • Building Trust and Unity: Establishing a Pan-African Chamber of Commerce

    Building Trust and Unity: Establishing a Pan-African Chamber of Commerce

    Unlocking AFCFTA’s Full Potential through Intercontinental Collaboration

    As the Africa Prosperity Network (APN) convened for its second annual dialogue in Accra, Ghana, a pivotal topic on the agenda was the establishment of a Pan-African Chamber of Commerce. This initiative, essential for the success of the African Continental Free Trade Area (AfCFTA), aimed to foster trust and collaboration among Africa’s diverse commercial and financial communities.

    The 2024 Africa Prosperity Dialogues addressed a crucial need for Africa’s burgeoning market: creating a credible Pan-African Chamber of Commerce. This development is central to the success of AfCFTA, relying on the continent’s private and commercial sectors to establish mutual trust. Historically, intra-African trade has been hindered by civil strife and a cultural tendency to favour foreign partners over neighbouring African countries.

    Distance and poor transport links across the continent further complicate face-to-face business interactions, essential for building trust. Additionally, the digital communication infrastructure, although improving, falls short of facilitating seamless cross-border commerce. The vast number of enterprises across Africa, many lacking the capacity to engage in formal cross-border trade, presents a logistical challenge in identifying reliable business partners.

    A Pan-African Chamber of Commerce would mitigate these issues by providing a platform to identify, vet, and facilitate business interactions across the continent. The process of establishing this chamber need not be daunting, despite Africa’s often manufactured divisions. National chambers of commerce, present in most African countries, can form the basis of each country’s chapter within the Pan-African Chamber. These chapters, working collaboratively under a Pan-African headquarters, would play a key role in conducting due diligence and facilitating trade among member states.

    Regular webinars coordinated by the headquarters would address vital topics, including the implementation of AfCFTA protocols, identification of cross-border markets, and country-specific trade and investment opportunities. This initiative aligns with ongoing movements towards sub-regional chambers of commerce, exemplified by the Federation of West African Chambers of Commerce and Industry (FEWACCI) and their initiative to establish a West African shipping line.

  • The Power of Production, Value Addition, Trade

    The Power of Production, Value Addition, Trade

    Unlocking Africa’s potential calls for sustainable and innovative approaches in farming, mining, and manufacturing. Investment in Special Economic Zones (key sectors) along production and river basins must be protected from unfair competition.

    This requires aligning governance and leveraging both the AfCFTA framework and the Regional Economic Communities, while considering national agendas.

    Trading is the conduit through which Africa can generate wealth from the world. Given that many countries on the continent are small markets, it is essential to defragment these nations and capitalise on our market of 1.4 billion people. Attracting foreign investment, enhancing the profitability of domestic investment, and increasing product competitiveness necessitate integrating the continent into global markets. This can be facilitated by fair trade agreements and infrastructural developments.

    Leveraging trade partnerships within Africa will showcase its diverse produce and commodities, fostering mutually beneficial relationships that drive economic growth and create employment opportunities. Empowering SMEs and fostering gender balanced entrepreneurship are integral to this journey. SMEs form Africa’s economic backbone: providing them access to capital, technology, and markets can ignite a vibrant entrepreneurial ecosystem.

    The road ahead presents challenges, such as infrastructure deficits, bureaucratic hurdles, and unadopted access to finance. However, strategic partnerships between governments, private sector entities, international organisations, and civil society can mitigate these challenges.

    While good leadership exists on the continent, the next step is to achieve good governance across the board to ensure sustainable development. Political leaders must unite to create consistent policies and regulations that promote competitiveness, regional and continental integration, and protect investments.

    Streamlined import-export processes, ease of cross-country investments, and free movement of people and goods are among the key policies needed to propel Africa towards a prosperous future.

    While good leadership exists on the continent, the next step is to achieve good governance across the board to ensure sustainable development.

    The promise of Africa’s prosperity is not just a dream; it’s a realistic vision waiting to be realised.

    APN is committed to advancing Africa’s vision of Prosperity and “The Africa We Want” as outlined in the African Union’s Agenda 2063. In line with this, the Africa Prosperity Network (APN), in collaboration with the Presidency of the Republic of Ghana and the African Continental Free Trade Area (AfCFTA), is organising its second edition of the Africa Prosperity Dialogue 2024, themed “Delivering Prosperity in Africa: Produce. Add Value. Trade.”

    APD 2024 aims to unite private and public sectors in executing strategic initiatives, critically accelerating intra-Africa trade for robust economic integration and shared prosperity. This pivotal event serves as an essential platform, fostering collaboration

    between Africa’s private sector and public officials to fast-track the tangible realisation of the continent’s single market potential.

    The time is now for a paradigm shift; to walk the talk so we can witness the desired theory of change. Africa possesses the ingredients for prosperity. By fully harnessing its abundant resources, adding value before export, boosting intra-African trade, and fostering regional and continental integration, the continent can chart a course towards sustained economic growth, job creation, and improved livelihoods for its people.

  • Pan-African Value Chains: A New Era of Economic  Empowerment

    Pan-African Value Chains: A New Era of Economic  Empowerment

    Fostering Intra-Continental Trade and Local Value Addition

    As Africa navigates this era of economic liberalisation, our focus shifts towards enhancing local value addition and developing robust pan-continental value chains. This transformative approach aims to reshape Africa’s trade deficits, unlocking vast economic potential across the continent, as the expansion of local productive capacity creates vast opportunities for creating jobs and prosperity across the continent.

    Since the 1980s and 1990s, African countries have embarked on economic liberalisation guided by Western institutions. However, these reforms have largely overlooked a crucial aspect: local value addition. It is only recently that African nations have recognised the need to focus on this area, crucial for their economic progression.

    Historically, African economic policies have centred on trade liberalisation, diversification of exports, deregulation of foreign exchange markets, and attracting foreign direct investment. Despite these efforts, trade volumes have escalated, but so have imports, outpacing exports and widening trade deficits. This trend contradicts the neoclassical economic doctrine, which posits that currency depreciation should enhance export competitiveness.

    In 2021, 37 out of 50 African countries recorded merchandise trade deficits. The continent’s US$35.27 billion trade deficit would have been more pronounced if not for surpluses from countries like Angola, the Democratic Republic of Congo, Libya, and South Africa. Notably, Algeria, Angola, Egypt, Nigeria, and South Africa account for nearly 60% of Africa’s total international trade, indicating a skewed trade structure.

    This imbalance highlights the failure of classical economic solutions and underscores the need for local value addition. The focus is now shifting towards creating intra-African trade and supply chains. This approach aims to retain more economic benefits within the continent.

    Ghana’s mid-1990s fiscal regime, influenced by the World Bank and the IMF, exemplifies the shortcomings of past policies. Tax incentives favoured companies importing production inputs for export-oriented manufacturing, inadvertently discouraging local value addition. This policy trend has been replicated across many African countries, leading to huge import dependencies.

    Interestingly, about two-thirds of Africa’s imports are production inputs, not finished consumer goods. Therefore, increasing local value addition in manufacturing could significantly impact trade balances. In 2021, sub-Saharan Africa’s raw material, intermediate production inputs, and capital goods imports far exceeded its consumer goods imports.

    Focusing on low-technology but inclusive manufacturing, particularly agro-processing, presents a viable solution. Many African countries have institutions capable of supporting cottage industries in this sector. Fiscal incentives and government commitment are crucial in leveraging this potential.

    A prime example is the brewery industry in Nigeria and Ghana, which has replaced imported barley hops with locally cultivated sorghum, maize, and rice. Such initiatives have reduced import bills and provided sustainable livelihoods for thousands of farmers.

    The African Continental Free Trade Area Agreement (AfCFTA) now offers a platform to extend these practices across the continent, creating supply and value chains that integrate various African countries based on competitive advantages. For instance, Unilever’s sourcing strategy across Africa illustrates the efficiency of such chains.

    Intra-African trade, currently a fraction of Africa’s total trade, holds immense growth potential. Increasing local value addition will retain more economic benefits within Africa, creating jobs and conserving foreign exchange. The use of the Pan African Payments System (PAPS) as a payment platform will minimise forex exposures, vital in the current economic climate.

    Engaging Africa’s public and private sectors in this new economic paradigm is key to transforming the continent’s economic landscape. This shift towards local value addition and continental trade collaboration is poised to redefine Africa’s role in the global economy.

  • Global Africa: Harnessing Global Africa’s power for Continental Development

    Global Africa: Harnessing Global Africa’s power for Continental Development

    In the wake of recent global challenges, including the COVID-19 pandemic and the Russia/Ukraine war, Africa finds itself at a crucial juncture. These events, compounded by the long-standing impacts of colonialism and climate change, underscore the urgency of rethinking the continent’s development strategies. Central to this re-evaluation is the recognition of ‘Global Africa’ – people of African descent living outside the continent, whose inclusion in Africa’s development agenda is now more crucial than ever.

    The African Union’s adoption of the term ‘Global Africa’ marks a shift from the traditional ‘African Diaspora.’ It envisions a broader identity for Africans, acknowledging their common historical experiences of slavery, colonialism, and racial oppression. This shared history provides a foundation for uniting towards collective prosperity.

    The economic influence of Global Africa is significant. In the United States, the African-American community, around 40 million people, contributed approximately $1.52 trillion USD to the U.S. economy in 2021. That same year, Africa received just $49 billion in remittances. In 2021, 11 million African-born migrants lived in European Countries, nearly five million resided in Asia, whilst about 3 million lived in North America. In 2020, more than 19.5 million Global Africans, born in Africa, lived outside Africa in different world regions. The Global African population holds significant economic and cultural power. However, this economic power remains largely untapped in terms of driving Africa’s development.

    The prevailing challenge for Global Africa is the ‘new scramble’ for its resources, a contemporary echo of historic exploitation that dates back hundreds of years before 1884, when arbitrary lines were drawn between our communities to facilitate the extraction of our treasures. Whilst old colonial era agreements continue to dictate our economic fortunes, major questions about the continent’s ability to harness its resources for the benefit of its people remain unanswered. “Prosperity in Africa requires us to dismantle this system that compels black people to succeed at the expense of one another”, says Glenn Singleton, an American-born Ghanaian and CEO of Door of Return. Singleton has been organising heritage tours to Ghana for African-Americans since 2019 through his Homecoming initiative.

    “| mean, look at African economies”, Singleton continues, “we are still predominantly driven by the export of primary commodities and natural resources, perpetuating the colonial-era development model. In this paradigm, Africa, rich in resources, essentially remains a supplier to more advanced economies, a pattern that disturbingly extended to the forced extraction of human resources during the enslavement of Africans. Moreover, this model glaringly omits representation from people like me at industry forefronts, effectively undermining our identity and experiences.”

    Emulating China’s rise from adversity, Africa must look both within and beyond its borders, integrating its strengths and building up the self-perception of its global population. Africa’s manufacturing and export sector lags dangerously behind, with the continent’s total contribution to world trade at just under 3%. African governments and private entities must rethink their approach to development.

    For Charles Kollo, an African-French-American entrepreneur and CEO at Crowned Kings, a Strategic consulting firm that has been supporting brands to scale in emerging markets, “addressing the needs of Global Africa requires a cultural transformation towards a unified ‘One Africa! with shared, distributed value chains of production and culture. This necessitates fostering educational heritage travel to enhance tourism and skills development, acknowledging the rich and diverse cultural heritage that emerged from forced migration.”

    Harnessing the power of Global Africa isn’t without its challenges. The current trend of brain drain, with skilled professionals leaving Africa for better opportunities, complicates this goal. A balancing option may be to propose new opportunities that incentivise successful Global Africans, willing to return. Just as Western corporations colonise the minds of our most talented young workers, offering them remote work and opportunity through service to non-African corporate interests, we must create conducive environments for Global African returnees and investors to replenish human capacity lost to regions outside Africa.

    Addressing these challenges demands coordinated action and enhanced physical and _ political infrastructure. Strategies must be developed to facilitate the return of Global Africans. The APN Club, in partnership with African and Global African Chambers of Commerce, offers potential solutions. These include visa waivers, expedited nationality, naturalisation, and investment incentives, along with opportunities for student exchange across Global Africa for all Africans.

    “Forty years from now,” referring to the African Union’s 2063 agenda and master plan for transforming Africa into the global powerhouse of the future, Kollo predicts nothing will have changed if fundamental issues like good roads, quality healthcare, working systems and rule of law are not addressed, “we can call on Global Africa to return home to the continent or invest in it all we want but if African governments do not put in place the basics, no one will be willing to give up the comfort they enjoy.”

    The active participation of Global Africa, alongside decisive actions from African governments, is vital in overcoming these challenges and unlocking the continent’s full potential

  • Global Africa Forum 2025 Charts Bold Path for an ‘Africa Beyond Aid’ Amid Global Tariff Wars

    Global Africa Forum 2025 Charts Bold Path for an ‘Africa Beyond Aid’ Amid Global Tariff Wars

    FOR IMMEDIATE RELEASE

    New York, 29 September 2025 – The Global Africa Forum 2025 (GAF), convened on the sidelines of the United Nations General Assembly, issued a powerful call for Africa to decisively seize control of its economic destiny. In response to global tariff wars, shifting geopolitics, and donor fatigue, leaders united around a vision of a self-reliant, integrated, and prosperous continent.

    Organised by the Africa Prosperity Network (APN) in partnership with the Africa America Institute, the African Continental Free Trade Area (AfCFTA) Secretariat, KRL International, and the Rebranding Africa Forum, the event gathered African and Global African leaders, alongside global investors, innovators, and policymakers. The forum was held under the theme: “Africa’s Response to Tariff Wars: Building a Prosperous, Integrated Continent Beyond Aid.”

    A Unified Continent as a Global Growth Frontier

    Positioned as an active platform for mobilising Africans and Global Africans to shape their future in practical terms, GAF 2025 emphasised that Africa’s strength lies in its unity and its capacity to mobilise its vast domestic and diaspora resources. Leveraging the African Continental Free Trade Area (AfCFTA) as a catalyst for economic growth, repositioning Africa and Global Africa or Africa’s Diaspora (designated by the African Union as Africa’s sixth region) as a unified market and a primary architect of its own prosperity defeats the narrative of an aid-dependent region. With a population of 1.5 billion, AfCFTA is the world’s largest single market project. Global Africa counts well over 200 million people.

    “At its core, GAF recognises that Africa’s accelerated path to prosperity lies in economic integration,” stated Nana Adjoa Hackman, Executive Director of APN. She said the platform is designed to “deliberately connect resourceful Global Africans, entrepreneurs, professionals, investors, innovators, and institutions in the Americas, the Caribbean, Europe, Asia, and elsewhere, to Africa’s integration and transformation agenda.”

    This sentiment was also echoed by Mohamed M. Abou El Enein, Chairman and Founder of Cleopatra Group. “Africa is in my blood, Africa is in my brain, and I’m really proud of what’s happening now in the international market about the big awareness from all the most developed [economies] about Africa. It’s very important for investors to see that this continent is connected together.”

    Mobilising Capital and Closing the Infrastructure Gap

    A key financing innovation that was unveiled at GAF 2025 was the ‘Dollar-a-Day Initiative’, proposed by Her Excellency Nkosazana Dlamini Zuma, APN Advisory Council Chairperson, during the 2025 Africa Prosperity Dialogues (APD). The initiative aims to mobilise small, consistent contributions from Africans and Global Africans into a dedicated continental infrastructure fund, directly addressing Africa’s $100 billion annual infrastructure deficit through collective action.

    GAF also scrutinised the strategic use of existing financial flows. Amine Iddriss Adoum, Director of Infrastructure, Industrialisation, Trade & Economy at AUDA-NEPAD, said: “We all keep saying that there are about $90 billion of remittances that come into Africa every year. But the interesting part of this number is that about 80% to 90% of the remittances don’t go towards productive investments.”

    Trade, Partnerships, and Implementing the AfCFTA

    High-level sessions interrogated Africa’s place in the global economy, calling for unified negotiation strategies, stronger regional value chains, and accelerated implementation of the AfCFTA. Discussions highlighted the urgent need for more balanced, trade-driven partnerships, particularly between the United States and Africa.

    Congresswoman Sheila Cherfilus-McCormick, United States Representative and Chairwoman for the Global Energy Conference, emphasised the need for a transformative engagement: “AGOA [Africa Growth and Opportunities Act] was a mutually beneficial trade policy that needed to be extended. So many people who looked at it said, ‘well Africa is the future’. We keep telling them that no, Africa is today, and it is now. We’re looking at finding different ways to participate more in Africa, specifically when it’s not just extraction, but we’re looking at processing, we’re looking at jobs, we’re looking at maximising the growth of Africa.” AGOA grants eligible African countries tariff-free entry into the United States for over 1,800 products. 

    Addressing Structural Barriers

    While the vision was clear, participants acknowledged the practical challenges to realising a single African market. Dr Amany Asfour, President of the Africa Business Council, highlighted key obstacles: “If we talk about AfCFTA, it’s just an agreement. But to implement this agreement, we need a multifaceted approach. We need to have harmonisation of all the regulations and policies across the continent. You cannot just trade [with one set of regulations in] one country and another [set of] regulations or certificates in another country.”

    Vymala Thuron, Director of Funds and Resource Mobilisation at Shelter Afrique Development Bank, pointed to financial infrastructure challenges: “At ShafDB, what we see is [real estate] as really an anchor to unlock trade, manufacturing, and energy. However, cross-border trade has high transaction costs and banking costs. There is volatility. We need to reduce the cost of capital, and we need to have other ways of de-risking investment.”

    Governance and the Diaspora as Key Drivers

    Joyce Bawah Mogtari, Special Aide to the President of Ghana, underscored the importance of governance: “If we want to make progress, we need a fair justice system and we need equity. Ghana is open for business. But yes, [while] we are open for business […] we want the right kind of business.”

    The Forum was notably encouraged by the significant number of registered attendees from the African diaspora, including African Americans and Afro-Caribbeans, who answered the call to reconnect with the continent. The event urged a decisive shift from charity and remittances towards strategic investment, innovation, and policy influence, positioning Global Africans as central drivers of connectivity, trade, and industrialisation.

    Looking Ahead: Africa Prosperity Dialogues 2026

    The event culminated with the launch of the Africa Prosperity Dialogues (APD) 2026, announced by a coalition of leaders including Nana Adjoa Hackman of APN, Joyce Bawa Mogtari, Special Aide to the President of Ghana, Dr Amany Asfour of the Africa Business Council, and Nkiru Balonwu, APN Board Member and Founder of Africa Soft Power.

    The dialogues will take place from 4–6 February 2026 at the Accra International Conference Centre, Ghana, under the theme: “Empowering SMEs, Women & Youth in Africa’s Single Market: Innovate. Collaborate. Trade.”

    The outcomes of the Global Africa Forum will feed directly into APD 2026, where the ideas and proposals raised will be refined into concrete policies, investment commitments, and measurable outcomes for the continent.

    For More Enquiries, contact

    Africa Prosperity Network, Communication Directorate Tel: +233 20 136 6105

    Email:comms@africaprosperity.network

    Web: www.africaprosperitynetwork.com

    About the Global Africa Forum:

    The Global Africa Forum, organised by the Africa Prosperity Network and the Africa America Institute, serves as a dynamic platform to connect the skills, technology, and financial resources of Global Africans with critical sectors such as energy, health, education, housing, transportation, and digital infrastructure. This partnership aims to unlock the potential of Africa’s single market, home to 1.4 billion people, by attracting global investments and facilitating innovative collaborations.

    Africa Prosperity Network (APN) is an Accra-based nonprofit organisation dedicated to advancing Africa’s single market and Agenda 2063 through high-impact platforms, including the Africa Prosperity Dialogues. The network connects public and private sectors to accelerate continental integration and sustainable development across Africa.

    Distributed to all African and international media houses

    — END —

  • Transforming Africa’s Economy: Charting the Course for Seamless Communication and Financial Transactions Across Borders

    Transforming Africa’s Economy: Charting the Course for Seamless Communication and Financial Transactions Across Borders

       BY SENYI FATHI AND KWEKU ADOBOLI

    As Africa navigates its digital revolution, the imperatives of interoperability in mobile networks with roaming services, on the one hand, and payment systems, on the other, are coming to the fore. These twin pillars have the potential to reshape the continent’s economic landscape, breaking down barriers in communication and financial transactions, if done at a Pan African scale. It is a crucial low-hanging fruit for the success of the African Continental Free Trade Area (AfCFTA).

    In the pursuit of free movement of people, goods, and capital, a key aspect often overlooked but equally vital is the seamless integration of communication and payment systems. The ability to effortlessly place calls and execute payments on the go underpins the essence of free trade and movement, fostering an environment conducive to economic growth and regional integration.

    Mobile Telephony Roaming:

    The First Pillar of Interoperability

    The concept of mobile telephony roaming, as the first pillar of interoperability, has evolved significantly. The European model, where roaming charges are virtually non-existent, stands in stark contrast to the situation in many African countries.

    Exorbitant rates for calls and data often impede communication and, by extension, business efficiency. However, recent years have seen some progress.

    A bilateral free international roaming agreement, due to be implemented on March 1st 2024, will cap data roaming charges between Togo and Ghana at FCFA 1.6 per MB. Currently, roaming charges can reach up to FCFA 8,400 per MB.

    Although in 2019, the African Telecommunications Union reported a notable reduction in roaming charges within several African regional blocks, Africans still spend more than their global counterparts, thus creating business growth bottlenecks.

    Payment Systems:

    The Second Pillar of Interoperability

    Payment systems interoperability is vital. The vision is for seamless financial transactions across African borders, mirroring the ease of mobile communication in Europe. Currently, cross-border payments in Africa are often hindered by high costs and inefficiencies. According to the World Bank, the average cost of sending $200 across borders in Sub-Saharan Africa was about 8.2% in 2020, higher than the global average of 6.8%. JP

    Morgan says global banks can save $120bIn a year in transaction costs, not including FX costs using multi-currency Central Bank Digital Coins (mCBDCs). Whilst Afrexim Bank calculates Africa spends S5billion a year in FX Transaction fees to correspondent banks in London, New York and Amsterdam. The opportunity for African finance institutions to collaborate to reduce these costs, whilst greatly increasing their profitability and influence, must be promoted.

    The Data Challenge

    The data cost challenge is profound. A 2021 study by the Alliance for Affordable Internet revealed that the average cost of 1GB of mobile data in Africa is 7.12% of the average monthly income, compared to just 2.22% in the Americas. These costs not only impede communication but also affect the growth of the digital economy.

    Bridging the Divide

    Travel has evolved from the days of carrying multiple currencies or relying on expensive dollars. Credit cards have simplified transactions, but high transaction fees remain a barrier. Similarly, inconsistent mobile connectivity across countries adds to the complexity, with roaming charges (especially data) often being prohibitively expensive.

    Europe’s approach to abolishing SMS charges two decades ago to foster communication and business mobility is a model worth emulating. It demonstrates the transformative impact of reducing communication barriers on regional economic activity.

    The Path Forward

    The path to achieving interoperability in Africa involves a multi-faceted approach. Governments, regulatory bodies, and industry players need to collaborate to create conducive environments for interoperability in both mobile telephony and payment systems.

    For mobile networks, this means harmonising policies and regulations to reduce roaming charges and improve connectivity across borders. Initiatives like the Smart Africa Alliance, which aims to create a single digital market in Africa by 2030, are steps in the right direction. These efforts must be accelerated and expanded to cover more countries and regions within the continent.

    In terms of payment systems, the focus should be on creating a unified payment infrastructure that allows for easy and cost-effective cross-border transactions. The recent launch of the Pan-African Payment and Settlement System (PAPSS) by the African Export-Import Bank is a landmark development in this regard. PAPSS is designed to enable instant cross-border payments in local currencies, significantly reducing transaction costs and time.

    Moreover, the private sector has a crucial role to play. Companies like M-Pesa in East Africa, MTN MoMo in West Africa, Orange Money in Francophone Africa among others continue to revolutionise mobile money services, demonstrating the potential of innovative financial technologies in enhancing financial inclusion and facilitating transactions. Expanding such services across the continent and ensuring their interoperability with other systems is essential.

    Project mBridge

    Experimenting with a Multi-CBDC Platform for cross-border payments

    The mBridge project, under the Bank for International Settlements (BIS), is a pioneering platform uniting Central Bank Digital Currencies (CBDCs) across four nations for instant, cost-effective cross-border settlements. Developed in partnership with the BIS Innovation Hub, Hong Kong Monetary Authority, Bank of Thailand, People’s Bank of China, and Central Bank of the UAE, mBridge enables real-time payment vs payment (PvP) transactions in diverse financial activities such as insurance, corporate bonds, wealth management, and e-commerce.

    This innovation enhances liquidity, increases credit availability, and fosters financial innovation, thereby strengthening the resilience and dynamism of economies globally. According to the BIS, systems like mBridge have become necessary “because the [correspondent banking] payment systems underpinning cross-border financial flows have not kept up with rapid growth in global economic integration.” In 2020, for nearly $23.5 trillion in cross-border transaction flows, transaction charges amounted to 0.5%, or $120 billion.

    –

    Afrexim Bank’s Pan African Payment and Settlement System (PAPSS) demonstrates that Africa has been ahead of the curve in attempting to reduce the transaction costs of cross-border transactions. Trade between African countries accounts for only 13% of all African trade, and yet Africans currently lose more than $5billion a whopping 7% of our 2020 intra-Africa trade volume – a year in foreign currency transactions to Western correspondent banking systems, on intra-African trade because we cannot trade directly between each other without round tripping to New York, London, or Paris for US Dollars or Euros. The functionality and capacity of PAPSS must continue to expand, increasing interoperability and de-dollarising our economies.

    Challenges and Opportunities

    The journey towards full interoperability in Africa faces several challenges, including diverse regulatory environments, varying levels of technological advancement, and concerns about data security and privacy. Overcoming these challenges requires sustained commitment from all stakeholders, including governments, regulatory authorities, telecom operators, financial institutions, and technology providers.

    However, the opportunities presented by interoperability are immense. For businesses, it means reduced operational costs, increased efficiency, and access to broader markets, notwithstanding non-trade barriers. For consumers, it translates to more accessible services and products, enhanced convenience, and improved economic participation. This would be the first step to achieving true free movement of people, whether or not our colonial borders remain.

    Strategic Imperative

    The dual focus on interoperability in mobile telephony and payment systems is not just a technical necessity but a strategic imperative for Africa’s economic growth. It holds the key to unlocking the continent’s digital potential, fostering regional integration, and realising the vision of AfCFTA. As Africa embraces its digital future, the importance of seamless communication and financial transactions across borders becomes paramount. A holistic approach to interoperability lays the foundation for a more connected, prosperous, and competitive continent.

    By reducing the barriers in communication and financial transactions, Africa can significantly enhance its attractiveness as a business destination, encourage entrepreneurship, and drive socio-economic development. After leapfrogging the telephone divide into the digital space, Africa has recorded the most accelerated mobile phone penetration in the world. This should speak to the potential of our economies with harmonised interoperability, where African prosperity begins.

    The Origins of Mobile Money: Driven by Necessity and African Ingenuity

    Reflecting on my boarding school days in a remote part of Benue state, Nigeria, I recall the challenge of being far from home, especially during sparse visiting days. As high schoolers without bank accounts, receiving money from our parents was a hurdle.

    We devised a workaround. Our parents would purchase and send us recharge card codes worth N1000 or N500. We would then journey into town, trading these codes with phone booth operators for cash, albeit at a slightly reduced value.

    This simple yet effective method bridged the gap, connecting us with much-needed funds from home.

    Francis Y. Brown runs an animation studio (AnimaxFYB Studios) from Ghana, with talent from Nigeria and Kenya, financing from South Africa and script writers from North Africa. Brown pays his workers, who mostly work remotely, and who sometimes have to travel to meet scriptwriters, without necessarily travelling from the studio in Ghana.

    Discussing the bottlenecks he faces, Brown says: “There are three things to consider: roaming charges for calls, roaming charges for data, and payments to those I work with from across the continent. Compared to a European production studio, most of my profits for such a Pan-African project are spent on these three elements. This makes me very uncompetitive compared to my American and European counterparts, not least because of talent.”

    Francis Y. Brown’s plight in managing a Pan-African animation studio underscores the challenges faced by continental businesses. The excessive costs of roaming, both for calls and data, coupled with the complexities of making cross-border payments, significantly dent the competitiveness of African enterprises compared to their European counterparts.

    Business Impact:

    • High roaming charges for calls and data across Ghana, Nigeria, Kenya, and South Africa inflate operational costs.
    • Inefficient cross-border payment systems increase expenses and complexities in transactions with remote workers and collaborators.
    • The studio’s competitiveness is undermined globally due to these systemic digital and financial barriers, despite having equivalent talent and creative capabilities.

  • Transforming Africa’s Economy through Local Petroleum Refining

    Transforming Africa’s Economy through Local Petroleum Refining

    The completion of the Dangote Refinery in Nigeria marks a significant milestone in Africa’s economic transformation. Spearheaded by Aliko Dangote, Africa’s richest and one of its most astute investors, this refinery, with a capacity for 650,000 barrels of crude oil per day, is not only the largest in Africa but also a testament to the continent’s ability to achieve self-sufficiency in refined petroleum products using private capital. This development is a focal point for the Africa Prosperity Dialogues, during which we will examine the investment model behind this achievement, particularly as Africa navigates the transition from fossil fuels to greener energy sources.

    Despite contributing the world’s smallest share of greenhouse gas emissions at just 3.8%, Africa faces practical challenges in adopting green energy. The focus remains on shifting from liquid fossil fuels to cleaner gas, a process that will be gradual due to investment limitations. Refining remains essential, given Africa’s reliance on imported refined products despite being a significant crude oil producer.

    In 2022, Africa produced an average of 7.1 million barrels of crude oil per day but refined only 3.38 million. This gap, exacerbated by countries like Ghana exporting all their production and importing refined products, results in a financial imbalance, with Africa spending more on petroleum products than it earns from crude oil sales. The continent’s refining capacity, heavily concentrated in Egypt, Algeria, and Libya, contrasts with the import dependency of most African countries, including Nigeria, which imports over 80% of its refined petroleum products. Remarkably, Ghana exports 100% of its produced crude oil, yet imports 100% of its crude inputs for local refineries. It is beyond apposite for Africa to abandon such colonial era agreements. One idea is to adapt these agreements so that where we create local demand for raw commodity sector outputs, all producers can be compelled to redirect at least a portion of their exports back into local production, at cost.

    The Dangote Refinery, expected to meet Nigeria’s entire refined petroleum needs and generate surplus for export, represents a shift towards local refining. This shift promises substantial economic benefits, including significant savings on import bills and foreign exchange. The Central Bank of Nigeria estimates that Dangote Refinery alone could save between US$25 billion and US$30 billion annually in foreign exchange.

    Furthermore, the Pan African Payments and Settlements System (PAPSS) will enable African countries to pay for refined petroleum products in local currencies, alleviating additional forex pressures. This system, coupled with the potential for countries to establish their own refineries and import crude from African producers, offers a sustainable economic model.

    Dangote demonstrates that private investment in refineries is viable in Africa, creating job opportunities and entrepreneurship prospects. During construction, it employed 40,000 workers, with an expectation to create over 250,000 direct and indirect jobs in full operation. Such initiatives are crucial for reducing Africa’s high unemployment rates.

    As Africa aims for industrialisation and intra-continental trade, the African Prosperity Dialogues present an opportunity to encourage leaders, entrepreneurs, investors, and technocrats to focus on developing refineries that can power industries and drive economic prosperity across the continent.

  • Unleashing Africa’s Demographic Dividend: Youth Challenges and Opportunities in Agenda 2063

    Unleashing Africa’s Demographic Dividend: Youth Challenges and Opportunities in Agenda 2063

    The world’s ten youngest countries by median age are all African. Today’s newborns will be navigating their forties by 2063 and inherit the African Union’s Agenda 2063. A staggering 60% of Africa’s population is under the age of 25. The continent’s youth play a central role in all our narratives.

    However, the youth face formidable challenges. Unemployment rates soar as high as 40% in some countries, signalling an urgent crisis. Equally concerning is the education gap, with UNESCO noting that over 30 million primary-school-aged children in sub-Saharan Africa are out of school, impeding crucial skills development.

    Presently, youth representation in African political offices is strikingly low, with the median age of leaders at around 62 years. This gap highlights the need for policies that foster intergenerational equity transfer and meaningful youth contributions, especially at the AU level.

    The AU Commission’s Youth Division underscores the value of mentorship and civic education programmes. Countries that have implemented these initiatives witnessed increased youth participation in voting and leadership roles.

    Africa’s creative sector should be a leading area of youth employment. The sector holds immense economic potential, as noted by the United Nations Conference on Trade and Development (UNCTAD). The creative sector is estimated to be worth $2.25 trillion globally, yet Africa’s share is minimal due to low intellectual property (IP) rights ownership.

    The global animation industry alone grosses about $300 billion dollars annually but only a fraction of that value accrues in Africa. However, the IP rights are not owned by African animators, thus most of the revenue does not stay on the continent. Investment in the creative sector, coupled with effective policy to incentivise protection of African IP, could stimulate job creation and economic diversification.

    A surge in African patent applications, as reported by the World Intellectual Property Organisation (WIPO), signals growing innovation. Governments and private entities should capitalise on this trend by investing in creative hubs – such as Uganda’s Innovation Village – and supporting emerging artists and entrepreneurs.

    Investing in education is crucial, given the strong link between education and socio-economic development. Governments must prioritise education funding, ensuring curricula are aligned with modern job market needs.

    The transformative role of technology in empowering Africa’s youth is significant. The continent is expected to record the highest fixed broadband subscriptions growth rate between 2024 and 2027 globally. Leveraging technology for political engagement is crucial to increase civic participation and youth engagement in political processes.

    The challenges and opportunities facing Africa’s youth in leadership and the creative sector reveal a roadmap for transformative change. By addressing these challenges through youth inclusion, evidence-based policies and strategic investments, Africa can unlock its demographic dividend and empower its young population to actively shape the continent’s future.

    A data-driven approach is essential to ensure that the youth not only become beneficiaries but active contributors to Africa’s socio-economic and political landscape.

  • Politics is the missing piece in Africa’s free trade area

    Politics is the missing piece in Africa’s free trade area

    By Patrick Smith

    A decade ago, at a high-level discussion hosted by the Mo lbrahim Foundation, some of Africa’s foremost economists debated steps to ensure the prosperity of the nascent African Continental Free Trade Area (AfCFTA). An unexpected voice emerged, one of Nigeria’s leading media magnates, a publisher: “Isn’t it obvious?” he asked. “Africa’s two biggest economies, Nigeria and South Africa, should lead — announcing a bilateral free trade pact and inviting fellow nations to join.”

    He drew a parallel with Europe’s single market, catalysed by the 1950 post-war Coal and Steel alliance between longtime adversaries France and West Germany. The 1958 Treaty of Rome expanded that foundation — melding economies and discouraging conflict.

    Today, the European Union boasts 27 members and 10 applicants, despite copious bureaucracy and rivalry. It remains globally impactful — a possible template for the African Union founded in 2002. That was propelled by the political drive of South Africa’s Thabo Mbeki, Nigeria’s Olusegun Obasanjo, and Senegal’s Abdoulaye Wade.

    Yet, for AfCFTA, absent is the political drive voiced by that publisher — whose Nigeria was among the last countries to ratify the agreement. It took a bilateral initiative from South Africa’s Cyril Ramaphosa to persuade Nigeria’s Muhammadu Buhari to sign up in 2019.

    Five years later, with treaties ratified, people still await discernible benefits and timelines for a single African market and currency. But no government readily abdicates economic sovereignty without major return. Many of these issues are political tasks including generating popular enthusiasm for the project. Garnering popular enthusiasm has confounded even the EU — arguably a subtext of Britain’s 2016 Brexit schism.

    Official trading under the AfCFTA protocols began on 1 January, 2021. But it was a soft launch given the reality that most of the world was still in pandemic purdah. And China, Africa’s biggest trading partner, was following one of the strictest ‘zero-Covid’ regimes and had cut back massively on its imports.

    Insularity and regionalisation supplanted globalisation as the economic doctrine of choice in the post-pandemic years. The IMF cautioned that traditional economies were gazing inward precisely as Africa ventured into free trade. And AfCFTA constitutes history’s most daring economic alliance — with a continent-wide population of 1.43 billion and $3.4 trillion GDP rivalling India and Britain.