Rabat, 25 April 2025 – Against the backdrop of rapid changes, marked by rising debt and global trade tensions that have cast a shadow over Africa’s post-COVID-19 economic recovery, the Economic Commission for Africa and the Policy Center for the New South held a national dissemination launch of the Economic Report on Africa 2025 (ERA 2025), on Friday, 25 April at the Mohammed VI Polytechnic University of Rabat.
This year’s edition of the report is titled, "Advancing the Implementation of the Agreement Establishing the African Continental Free Trade Area (AfCFTA): Proposing Transformative Strategic Actions."
Considered as one of the most comprehensive economic agreements in existence, the AfCFTA is widely recognized as a game changer for Africa’s long-term growth and prosperity. Its protocols and mechanisms cover a wide range of dimensions such as trade in goods and services, dispute settlement, competition, investment, intellectual property, digital trade, and the contribution of women and youth.
ECA experts note that a meticulous implementation of the AfCFTA in 2045 could enable the continent to increase its GDP by $141 billion and intra-African trade by $276 billion (+45%).
In the short-term, the AfCFTA can help African industries threatened by rising international tariffs, such as the automotive and fertilizer sectors, accelerate their shift toward alternative regional markets.
ERA 2025 provides an overview of the implementation of the African free trade agreement and its potential impact on structural transformation, and inclusive and sustainable development in Africa. It also examines the gaps observed in its implementation and draws up a list of priority actions to ensure its successful implementation in a rapidly changing global trade context.
However, in order to make these ambitions a reality, the authors of the report note that African countries still need to take several steps to strengthen their position in global trade by creating a common African trade policy vis-à-vis other regions of the world, ironing out inconsistencies in AfCFTA implementation mechanisms and implementing the Protocol on the Free Movement of Persons, to accelerate the emergence of African regional value chains.
Note to editors:
Please send an email to filali-ansary@un.org (CEA) et H.Tadili@policycenter.ma (PCNS) for more information and interview requests.
Useful links:
Economic Report on Africa 2025:
https://repository.uneca.org/bitstream/handle/10855/50385/b753549.pdf?sequence=3&isAllowed=y
Live recording of the ERA 2025 presentation:
https://www.youtube.com/live/MwtA6N7orEc
Listen to the PCNS:
Podcast recording with Stephen Karingi, Director of the ECA macroeconomic division and Adam Elhiraika, Director of the ECA Office for North Africa.
KEY RECOMMENDATIONS FROM THE ERA 2025 REPORT
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Governments should prioritize the full implementation of the AfCFTA, including reducing tariffs, eliminating non-tariff barriers, and harmonizing trade policies.
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Develop robust regional value chains in key sectors such as agro-processing, automotive, pharmaceuticals, and renewable energy. This requires targeted industrial policies, investment in productive capacity, and support for small and medium enterprises (SMEs).
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Integrate climate policies into AfCFTA implementation, including carbon pricing and investments in renewable energy. Africa's transition to renewables, in the AfCFTA context and leaving aside specific climate policies, could require a cumulative $22.4 billion in investments between 2025 and 2040, with a focus on solar and wind power.
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Streamline customs procedures and adopt digital technologies, such as blockchain and electronic data processing, to reduce trade costs and improve efficiency.
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Implement gender-sensitive policies under the AfCFTA, such as promoting women's access to finance, education, and digital skills.
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Harmonize trade policies and regulations across regional economic communities (RECs) to reduce fragmentation and enhance coherence in AfCFTA implementation. Promoting the free movement of people, goods, and capital across borders will be supported by initiatives like the Single African Air Transport Market and the Pan-African Payment and Settlement System.
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Invest in sustainable urban development, including affordable housing, clean water, and sanitation, to manage the challenges of rapid urbanization. Promoting job creation in urban areas, particularly in the services and informal sectors, will harness the demographic dividend and reduce youth unemployment.