AfCFTA: Africa Targets Bigger Trade Boom as Nigeria Prepares for IATF2027
Africa’s push for deeper economic integration is gathering momentum as governments, businesses and financial institutions intensify efforts to dismantle longstanding barriers preventing African companies from trading freely across the continent.
With intra-African trade reaching $206.6 billion in 2024, attention is increasingly shifting from signing agreements to creating the infrastructure, financing, market intelligence and payment systems needed to turn the African Continental Free Trade Area (AfCFTA) into a functioning continental marketplace.
The growing trade figures underline Africa’s enormous economic potential, but significant obstacles continue to prevent businesses, particularly small and medium-sized enterprises, from taking full advantage of opportunities beyond their national borders.
According to figures cited by Kanayo Awani, Executive Vice-President, Intra-African Trade and Export Development at Afreximbank, intra-African trade grew by 5.4 per cent in 2024 to $206.6 billion.
The development indicates growing commercial activity between African economies, but experts maintain that much more can be achieved if governments tackle regulatory bottlenecks, expensive logistics, inadequate trade finance and limited access to information about opportunities in neighbouring markets.
The AfCFTA represents one of Africa’s biggest opportunities to reverse decades of fragmented markets by creating conditions that allow businesses to sell goods and services more easily across national borders.
However, achieving that ambition will require more than tariff reductions.
African economies must increasingly connect their customs systems, transportation networks, product standards, digital platforms and payment infrastructure if businesses are to operate across borders efficiently.
The World Bank has identified fragmented customs procedures, inefficient logistics, transport restrictions, different standards and weak infrastructure among major obstacles increasing the cost of trade across Africa.
Against this background, the Intra-African Trade Fair has emerged as an important platform for connecting businesses, investors and governments.
The 2025 edition held in Algiers reportedly generated about $50 billion in trade and investment deals, demonstrating the scale of commercial opportunities available when African businesses are provided with platforms to identify partners and negotiate transactions.
Attention is now turning to Nigeria, which will host IATF2027 in Lagos from November 5 to 11, 2027.
The Lagos edition is targeting more than 100,000 visitors, over 2,500 exhibitors and upwards of $50 billion in trade and investment deals.
Nigeria’s selection as host could prove strategically significant for AfCFTA implementation.
As Africa’s most populous country and one of its biggest economies, Nigeria possesses enormous agricultural, mineral, manufacturing, energy and human resources capable of supporting continental value chains.
The country could therefore use IATF2027 not merely as an exhibition but as an opportunity to position Nigerian manufacturers, exporters and SMEs for greater penetration of African markets.
Investments in facilities such as the Lekki Deep Sea Port, industrial clusters and logistics corridors could also strengthen Nigeria’s position as a major gateway for continental commerce.
Digitalisation is equally becoming central to Africa’s trade ambitions.
Cross-border payment systems, digital marketplaces and interoperable trade infrastructure could significantly reduce the difficulties businesses currently face when attempting transactions across multiple African currencies and jurisdictions.
For African SMEs, which frequently struggle with travel costs, financing and limited market information, digital trade platforms could provide easier access to customers, investors and business partners across the continent.
Recent moves towards an AfCFTA Digital Trade Corridor further demonstrate the growing emphasis on technology. The initiative is expected to develop a continental digital marketplace, interoperable cross-border payments and logistics capabilities.
Ultimately, Africa’s biggest trade challenge may no longer be whether businesses are willing to trade with one another, but whether governments can remove the structural obstacles standing between those businesses and a continental market.
With AfCFTA providing the framework and Nigeria preparing to host IATF2027, Africa has another opportunity to move from economic integration promises to measurable commercial results.
Success will depend on reducing trade barriers, improving transportation and logistics, expanding affordable financing, harmonising regulations and building payment systems capable of making cross-border transactions faster and cheaper.
If those obstacles are addressed, the continent could transform growing intra-African commerce into stronger industries, expanded investment opportunities, millions of jobs and a more competitive African economy.
