AfCFTA targets $250bn trade, hails Lagos transformation

The African Continental Free Trade Area (AfCFTA) is on track to reach $250 billion in annual intra-African trade this year, a significant increase from the $220 billion recorded in 2025, according to AfCFTA Secretary-General Wamkele Mene. Mene commended Lagos State for its role in positioning the city as a pivotal hub for Africa's industrialization and digital innovation during the 'Invest Lagos 3.0' Conference.

Mene highlighted that 50 African countries are actively implementing the AfCFTA agreement, with all foundational protocols concluded, creating a robust framework for economic integration. He stressed the urgency for Africa to deepen intra-continental trade due to increasing global economic challenges and limited access to traditional export markets. "Many African countries have lost market share in key international markets and face increasing trade barriers. We have to build a strong domestic market within Africa because our future growth lies here on the continent," he stated.

The AfCFTA Secretary-General pointed out that external shocks, such as the COVID-19 pandemic and the Russia-Ukraine conflict, have exposed Africa's vulnerability to supply chain disruptions and import dependence. Strengthening intra-African trade is seen as crucial for enhancing the continent's resilience against future economic shocks. However, significant barriers remain, including high trade finance costs, inadequate transport infrastructure, logistics bottlenecks, and restrictions on the movement of people.

Mene cited the example of transporting goods between Lagos and Abidjan, a journey of approximately 1,080 kilometers, which can take up to 17 days due to numerous checkpoints and border challenges. He advocated for wider adoption of visa-free policies and visa-on-arrival arrangements for African business travelers to boost trade and investment. He also praised countries like Nigeria, Ghana, and Kenya for easing travel restrictions. Furthermore, Mene recognized Lagos as Africa's leading fintech hub, projecting the continent's digital economy to reach $712 billion by 2035, creating vast opportunities through digital payments and emerging technologies.

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Many African countries have lost market share in key international markets and face increasing trade barriers. We have to build a strong domestic market within Africa because our future growth lies here on the continent.