AITCR POLICY INSIGHT ON AfCFTA BUSINESS ENGAGEMENT

Introduction
The African Continental Free Trade Area (AfCFTA) is a landmark initiative designed to accelerate economic integration, enhance intra-African trade, and drive industrialisation. However, despite its potential, many businesses, particularly SMEs and informal traders, remain unaware of its provisions. This knowledge gap significantly limits their ability to leverage AfCFTA’s benefits, resulting in suboptimal participation in intra-African trade. The January 2025 policy brief from Africa International Trade and Commerce Research (AITCR) presents findings from recent trade poll surveys on business awareness and utilisation of AfCFTA provisions.

Key Findings

1. Business Awareness of AfCFTA Opportunities
   • 87% of respondents possess at least a moderate understanding of AfCFTA’s provisions
   • 13% remain poorly informed or completely unaware, with SMEs and informal traders disproportionately affected
   • Knowledge gaps are attributed to inadequate outreach efforts, information asymmetry, and limited engagement with businesses
2. Maximizing AfCFTA Benefits Through Business Awareness
   • 46% of respondents demonstrated comprehensive knowledge of AfCFTA protocols
   • 33% reported moderate awareness
   • 21% of businesses exhibit limited or no understanding, impeding their ability to leverage trade opportunities
3. Utilization of AfCFTA Provisions
   • 50% of businesses have never utilized AfCFTA provisions due to lack of awareness, regulatory challenges, and infrastructural constraints
   • 25% of businesses have extensively utilized AfCFTA benefits, mainly large firms with greater access to trade-related information and resources
   • To improve engagement, policy efforts must focus on simplifying trade processes, increasing financial support, and enhancing digital trade infrastructure

Recommendations

1. Enhance AfCFTA awareness and outreach efforts
   • Implement nationwide and sector-specific educational campaigns
   • Leverage digital platforms, trade fairs, and mass media for broad dissemination
   • Develop multilingual educational materials tailored to diverse business sectors
2. Develop business-centric capacity-building programs
   • Establish training workshops, online courses, and business advisory services
   • Develop sector-specific training modules for manufacturing, agriculture, and e-commerce
   • Facilitate mentorship and incubation initiatives to support SME growth
3. Improve access to trade finance and market entry support
   • Develop AfCFTA-aligned financial instruments, including trade facilitation loans
   • Establish one-stop trade information centres for SMEs and informal traders
   • Simplify bureaucratic processes to reduce compliance costs
4. Strengthen infrastructure and regulatory support
   • Enhance logistics networks, digital payment systems, and customs modernisation
   • Harmonise regulatory frameworks across member states
   • Digitalize trade documentation to reduce inefficiencies
5. Strengthen public-private sector collaboration
   • Foster continuous dialogue between governments, trade organisations, and businesses
   • Establish AfCFTA Business Advisory Committees for structured engagement
6. Implement continuous monitoring mechanisms
   • Conduct periodic surveys and stakeholder consultations on AfCFTA participation
   • Publish evidence-based policy recommendations to refine support initiatives

Conclusion

The success of AfCFTA hinges on business awareness and active participation. Bridging existing knowledge gaps through strategic policy interventions will empower SMEs, women-led enterprises, and informal traders to fully utilise AfCFTA’s provisions. Through enhanced awareness campaigns, capacity-building initiatives, trade finance accessibility, and regulatory harmonisation, African businesses can maximise the full potential of AfCFTA, fostering inclusive economic growth and regional prosperity.

Download the full report here

Author: AITCR 3