The African Continental Free Trade Area (AfCFTA) could raise real incomes across Africa by between 7 and 9 percent and lift an estimated 40 million people out of extreme poverty by 2035, according to the World Bank.
Launched in January 2021 under the framework of the African Union, the AfCFTA seeks to establish a single continental market for goods and services, enhancing trade integration across member states.
However, the World Bank’s April 2026 Africa Economic Update indicates that the agreement’s expected impact has yet to be fully realised.
The report underscores that unlocking the full benefits of the AfCFTA will depend on strong leadership from frontrunner countries, effective monitoring and enforcement of commitments, and sustained investment in regional public goods.
While tariff reductions are expected to stimulate intra-African trade, the Bank notes that the most significant barriers lie in high internal trade costs. These include weak transport and logistics infrastructure, inefficient customs and regulatory frameworks, low levels of digitalisation, and high domestic financing and logistics expenses.
In addition, non-tariff barriers such as selective export bans continue to hinder trade across the continent.
The report further highlights the importance of Phase II of the AfCFTA, which is expected to address critical areas such as investment, intellectual property rights, competition policy, and the inclusion of women and youth in trade.
Despite its transformative potential, the World Bank cautions that implementation of the agreement will be gradual, given the substantial investment demands and the need for deeper institutional and regulatory reforms across participating countries.
