AfCFTA needs US$411bn for transport infrastructure
THE African Continental Free Trade Area (AfCFTA), a key project of the African Union’s Agenda 2063, says an estimated US$411 billion is required for transportation infrastructure to support efficient intracontinental trade, deputy executive secretary (Programme Support) at the Economic Commission for Africa (ECA) Mr Antonio Pedro has said.
The continent-wide trade block aims to establish a single market for 1,3 billion people, with a combined gross domestic product of approximately US$3,4 trillion.
AfCFTA will be the world’s largest new free trade area since the establishment of the World Trade Organisation (WTO) in 1994.
Zimbabwe is among the pioneer countries that embraced AfCFTA, recognising its vast market potential estimated at trillions of US dollars and a population exceeding 1,3 billion.
Speaking at the 2025 Conference of African Ministers of Finance, Planning, and Economic Development -Committee of Experts in Addis Ababa, Ethiopia on Wednesday, Mr Pedro said the AfCFTA served both as a development blueprint and a powerful political platform.
An Africa that speaks with one voice is strong, he said.
He said a prosperous Africa presents a significant market for businesses worldwide.
“A prosperous Africa is a market for businesses all over the world. We must strengthen the fundamentals to make this happen,” said Mr Pedro.
The conference is being held under the theme “Advancing the implementation of the Agreement Establishing the African Continental Free Trade Area: proposing transformative strategic actions.”
Mr Pedro acknowledged that Africa must first overcome the limitations of the small and fragmented economies inherited from colonial rule to unlock its full economic potential.
He described AfCFTA as the result of over six decades of persistent efforts toward regional and continental economic integration.
“Proud as we are of the journey so far, the task ahead remains significant and indeed critical.
“We are committed to continue supporting our member States to fully realise their regional integration journey that will culminate in the establishment of the African Economic Community.
“We are convinced that in this integration process, the AfCFTA is a critical and transformational initiative. Today, about 85 percent of Africa’s total exports is directed to the rest of the world, with a strong concentration in primary commodities that account for over 60 percent of the total.
“This contrasts with the composition of intra-African trade, which, although relatively small, is more diversified and dominated by industrial products. This is where the AfCFTA is expected to be a game changer.”
He said ECA’s latest empirical assessment indicated that reducing tariffs and non-tariff barriers within the continent, as outlined in AfCFTA’s modalities, could result in intra-African trade growing by 45 percent by 2045 compared to a scenario without AfCFTA.
The majority of these anticipated gains are expected in the agrifood and industrial sectors, creating unprecedented opportunities for Africa’s industrialisation, food security and product complementarity.
Mr Pedro projected that AfCFTA’s implementation would require about US$411 billion in transport equipment.
“Another important study we did in 2022 on ‘Implications of the African Continental Free Trade Area for Demand of Transport Infrastructure and Services’ projected that about USD $411 billion in transport equipment will be required because of the AfCFTA, including US$4 billion for 135 vessels, US$25 billion for 243 aircraft, US$36 billion for 169,000 rail wagons, and US$345 billion for over 2.2 million trucks,” he said.
Investments in railway infrastructure and fleets are expected to increase intra-African trade by rail from less than one percent today to nearly seven percent, representing a projected rise of 5,5 percent, he added.
Despite its vast potential, Mr Pedro noted that a lack of appropriate information about AfCFTA remains a major challenge.
For example, the African private sector, especially small and medium-scale enterprises, remains largely unaware of the AfCFTA, he said.
He noted that achieving the benefits of intra-African trade requires greater awareness and engagement from the private sector.
“We must not expect intra-African trade to change without the African private sector knowing about it, embracing it, and playing a key role in supporting its operationalisation. In other words, the transformational power of the AfCFTA can only be unleashed through a comprehensive, coordinated, inclusive, and intentional action by all at all levels.”
AfCFTA holds the promise of transforming Africa’s economic landscape by fostering deeper integration, enhancing industrialisation, and expanding trade opportunities. However, realising its full potential will require sustained investments, policy alignment, and robust private sector engagement.
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