African Business Leaders Lack Support to Benefit from AfCFTA Opportunities
A report published by the Pan-African Committee on Trade and Private Sector Investment (PAFTRAC) reveals that 91.2% of African business leaders do not receive any support to take advantage of the opportunities offered by the African Continental Free Trade Area (AfCFTA). This finding comes from a survey of 1,388 business leaders in 49 countries across the continent, the majority of whom are from small and medium-sized enterprises (SMEs).
According to the respondents, financial institutions (68.86%), the AfCFTA Secretariat (62.88%), and governments (50.18%) should be the main actors mobilized to provide this support. The priorities include disseminating information on commercial opportunities (66.18%), the benefits of the agreement (60.20%), access to long-term financing (56.17%), and capacity building (49.08%).
The report also highlights a low level of awareness about AfCFTA: 60% of business leaders surveyed claim to know little or nothing about the agreement, while nearly half have never heard of the Pan-African Payment and Settlement System (PAPSS) or the guided trade initiative.
Despite these gaps, 70.8% of respondents believe that AfCFTA could have a positive impact on their business, thanks to an expanded market (70.87%), new investment opportunities (67.06%), and reduced operational costs (50.65%). However, they fear increased competition and financial losses due to market saturation and taxation.
African business leaders also point to inflation (67.61%), debt (63.03%), and rising interest rates (54.12%) as their top concerns. Despite these challenges, 67% of business leaders are confident about the continent's economic future.
PAFTRAC, the originator of this report, is working to mobilize the private sector to strengthen intra-African trade and maximize the opportunities offered by AfCFTA.
