The Al-Alamein Africa Business Forum has emerged as a crucial platform for bringing together the private sector, public sector, and policymakers to drive regional integration and accelerate trade and investment across Africa. According to Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA), the forum aims to translate discussions into concrete actions that unlock Africa's potential and transform investment projects into reality. The forum has already yielded tangible results, with several transactions signed on the first day, including an agreement with the African Association of Automotive Manufacturers (AAAM) to mobilize investments in the automotive sector.
Mene highlighted that the AfCFTA has made significant strides, including the conclusion of all protocols that form the legal foundation of the agreement. He noted that in 2024, Africa recorded over $220 billion in intra-African trade, with the private sector reaping substantial benefits. Furthermore, the AfCFTA has directly engaged with the private sector, particularly in the digital economy, to mobilize investments for building Africa's digital infrastructure. While acknowledging that much work remains to be done, Mene expressed optimism about the progress made so far.
One of the major challenges hindering intra-African trade is the infrastructure deficit, estimated by the African Development Bank to be between $150 billion and $170 billion. Mene emphasized that this presents a significant opportunity for attracting investors, with the AfCFTA secretariat working closely with development finance institutions and commercial banks to address this issue. He stressed that the secretariat does not have a financial balance sheet to invest directly but instead relies on its partners, such as the African Development Bank, Africa50, and the Africa Finance Corporation.
The AfCFTA has implemented policies to stimulate local manufacturing and ensure that the true value added remains in Africa, rather than simply exporting raw materials. Specifically, the protocol on trade in goods contains explicit provisions requiring the local transformation of critical minerals, adding value in Africa, and improving production capacity. Mene emphasized that what is now required is investment to develop these productive capacities and mobilize capital for this purpose.
The African e-commerce market is projected to reach $712 billion by 2035, and Mene highlighted that the AfCFTA's protocol on digital trade will play a crucial role in bridging the technological gap. He noted that increased investment in digital infrastructure is necessary to achieve this projection and that several companies are currently investing in Africa's digital economy. For instance, a Nigerian company has committed to investing nearly $1 billion over ten years to build digital infrastructure.
Empowering women and young people is a key objective for the AfCFTA, and Mene outlined several initiatives aimed at translating this goal into concrete programs on the ground. These include the protocol on women and youth in trade, which is the first of its kind globally, and specific programs for young entrepreneurs and women-led businesses. The AfCFTA has also established platforms for youth and women in trade, enabling them to identify new export opportunities and collaborate with entrepreneurs.
To support small and medium-sized enterprises (SMEs), the AfCFTA has launched initiatives such as Biashara Africa and the Africa Trade Corporation. Mene emphasized that these initiatives aim to help SMEs access the regional market and remain competitive. By providing a platform for SMEs to engage with the AfCFTA, these initiatives can help unlock the potential of African businesses and drive economic growth across the continent.
Key points
- The Al-Alamein Africa Business Forum has catalyzed significant investments in various sectors, including the automotive industry.
- The AfCFTA has made substantial progress in implementing its protocols and driving intra-African trade.
- The organization is working to address major challenges, including infrastructure deficits and technological gaps, to unlock Africa's economic potential.
