Trade partnerships key to borderless African market creation – Dr. Arthur                           

 By Ernest Bako WUBONTO

The Executive Consultant at the Africa Trade Capacity Centre, a pan-African institution dedicated to promoting intra-African trade and effective implementation of the African Continental Free Trade Agreement (AfCFTA), Dr. Fareed Arthur, has stated that strategic trade partnerships are the critical catalyst for realising a fully integrated and borderless African market.

He urged businesses, especially small- and medium-scale enterprises (SMEs) across the continent, to foster deeper trade partnerships as a critical strategy for boosting intra-African trade and achieving borderless African market access.

Speaking at the Africa Business Festival – The CEO’s Connect Summit organised by Enzee Events in collaboration with the Canada-Ghana Chamber of Commerce (CanCham) – Dr. Arthur emphasised that the time for Africa’s economic integration is now and partnerships will be the cornerstone of its success.

“To thrive in a borderless market, African businesses must prioritise regional partnerships, align with cross-continental regulatory standards and leverage their competitive advantages,” he said.

Highlighting opportunities and challenges facing the AfCFTA initiative under the theme ‘Thriving in a Borderless African Market’, Dr. Arthur stressed the substantial progress made since AfCFTA was launched in 2021 – emphasising that the African Union has historically functioned more as a political union, but introducing AfCFTA is a definitive game-changer poised to reclassify the continent into a powerful economic bloc.

“Though technically just four years old, the AfCFTA has already laid a robust foundation for economic transformation across the continent. Africa has no option but to become borderless and, over time, all 54 countries will be fully borderless,” he said.

Dr. Arthur pointed out that while Africa has long been a key supplier of raw materials to the world, having provided gold for over 700 years and still holding reserves for the next 700, it continues to lose out on value-added benefits.

A striking example, he said, is the cocoa industry which is worth over US$150billion globally, yet Africa – despite being the leading producer through countries like Ghana and Côte d’Ivoire – captures just US$6billion of that value.

He argued that unlike other continents, Africa trades approximately 87 percent with other continents and very little within itself. “Every mobile phone has a component sourced from Africa, yet none are manufactured here. This is a missed opportunity,” he noted.

He added that transforming Africa from a political union into a truly economic one requires commitment to internal trade, industrialisation and value addition.

Dr. Arthur identified value addition as the key to Africa reclaiming its rightful place in the global value chain. He cited Ghana’s automotive industry – where major international companies assemble vehicles under a national auto policy designed to enable exports into the broader African market – as a typical example of successful foreign partnerships for local production.

Dr. Arthur also highlighted the growing relevance of trade in services, particularly within the digital economy where Africa’s youth are rapidly gaining traction.

He commended the African Export-Import Bank (Afreximbank) for rolling out the Pan-African Payment and Settlement System (PAPSS), designed to facilitate intra-African transactions by eliminating the need for third-party currencies.

“Already, 11 banks in Ghana are integrated into the system; positioning the country as a gateway for cross-border business under AfCFTA,” he said.

Persisting Challengers

Despite these gains, Dr. Arthur acknowledged challenges such as regulatory inconsistencies and persistent multiple border-check issues causing delays in movement. However, he remains optimistic that these hurdles can be overcome through deliberate actions.

He emphasised the need for accessible trade information that will highlight existing opportunities for investment and influence decision-making, as well as harmonised standards.

“Understanding markets and having access to statistical data is crucial. Regulatory standards, such as shoe-size differences between American and European shoes, highlight why Africa must establish its uniform benchmarks for goods and services,” he urged.

Dr. Arthur concluded by urging entrepreneurs to seek opportunities in the very challenges that currently exist. “Our opportunities are in those challenges across the continent, both in goods and services. Seek information, prepare to build capacity in key industries and capitalise on your expertise to advance change,” he said.

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