The African Continental Free Trade Area (AfCFTA) aims to boost trade and economic growth across Africa.
While it offers many opportunities, businesses also face important challenges as they navigate this new trade landscape. Here are the key challenges businesses encounter under AfCFTA.
Firstly, many countries still have different trade regulations and standards. This lack of uniformity can cause confusion and delay shipments across borders.
Next, inadequate infrastructure remains a major hurdle. Poor roads, inefficient ports, and unreliable logistics increase costs and slow down trade.
Then, customs procedures can be complex and time-consuming. Businesses often deal with paperwork and border delays, which affect their ability to move goods quickly.
After that, limited access to finance makes it hard for small and medium enterprises (SMEs) to invest and scale within the AfCFTA framework.
Following that, businesses face competition from larger companies that may have more resources and better market reach, making it tough for smaller players to compete.
Next, some regions experience political instability and security issues, which create risks for cross-border trade and investment.
Finally, lack of awareness and information about AfCFTA benefits and requirements means many businesses are not fully prepared to take advantage of the agreement.
Understanding these challenges is key for businesses to develop strategies and adapt in order to thrive under AfCFTA.
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