Mobilising Africa’s private sector for AfCFTA amid global uncertainty

By J. K. Randle

The African Continental Free Trade Area (AfCFTA) represents one of the most ambitious and promising undertakings in Africa’s integration agenda as critically espoused in the African Union’s Agenda 2063. With its potential to unite 55 countries into a single market of over 1.4 billion people and a combined GDP exceeding $3.4 trillion, it is a bold step towards achieving the long-held dream of Pan-African economic self-determination. It promises to dismantle artificial barriers, facilitate the return of intra-African trade, promote industrialisation, and generate millions of jobs, especially for our vibrant youth that accounts for 70% of our population.

This forum is our modest contribution to ongoing efforts at ensuring that intra-African trade grows at an annual average rate of 6.6% between 2025 and 2027 and that Nigeria and other African countries achieve the revised annual GDP growth rate of 8% and that expedient steps are taken to ensure that the realisation of our collective optimism is not dampened by pervading global uncertainties.

The very great economic heights that the 55 member nation AfCFTA might attain if Africa’s economy could be fully integrated were highlighted recently by the globally renowned development economist, Professor Jeffery Sachs at the Unstoppable Africa Forum which was one of the side events of the United Nations General Assembly last month in New York. According to Sachs, AfCFTA nations with a combined population of 1.4 billion could have their integrated GDP of $3.4 trillion grown considerably like those of China and India with $18 trillion GDP and $13 trillion GDP respectively and with comparable population of 1.4 billion like that of Africa, if Africa’s economy could be fully integrated rapidly. He explained that the resultant connectivity and other benefits would enable African entrepreneurs produce more competitively at scale, boost intra African trade and increase Africa’s contribution to global trade beyond the paltry 3%.

As promising as the prospects of AfCFTA are and its catalytic impact on the realisation of AU’s Agenda 2063, Nigeria has been vested with responsibility of leading Africa’s renaissance by leading development experts and even great African leaders. Nelson Mandela, the president of South Africa, 1994-1999 said “The world will not respect Africa until Nigeria earns that respect. The black people of the world need Nigeria to be great as a source of pride and confidence”. In the same vein, Patrice Lumumba, first Prime Minister of the Democratic Republic of the Congo 1960-1961 also said “The day Nigeria wakes up, Africa will never be the same again”

These are some of the important considerations that underscore the significance of this High Level Forum as well as its theme and why it was convened by NEPAD Business Group Nigeria with the full support of national and subnational governments and the Chief Executive Officer/National Coordinator AUDA/NEPAD Nigeria Honourable Jabiru Salisu Abdulahi as well as private leaders and Nigeria’s development partners.   

NEPAD Business Group Nigeria is of the strong conviction that the private sector remains the engine of Africa’s transformation. Through this Forum, we aim to build actionable strategies that will strengthen Africa’s economic resilience, promote cross-border trade, and ensure inclusive prosperity for all.

We are also of the view that the true dividends of AfCFTA will only be realised if all African countries build internal capacities that would enable them engage competitively and sustainably within the African market and beyond. This is why this forum has been designed to place emphasis on Mobilising and Strengthening Africa’s Private Sector to Become Globally Competitive, which is a call to boost our productivity and competitiveness towards enhancing intra-African trade and Africa’s participation in global trade beyond the depressingly low average figure of 3%.

Prerequisites for accomplishing these laudable aspirations include the prevision of enabling business environments and the required infrastructure, human capital development to equip our youths with requisite skillset that would also enhance their capacity to innovate as well as substantial financial resources 70% of which should be mobilised domestically as enunciated under the African Union’s Agenda 2063.

While taking bold steps that are designed to accelerate the realisation of the bright prospects of AfCFTA, we must not be oblivious to external threats that could undermine its implementation. From global economic volatilities characterised by tariff wars, dwindling external financial support, to geopolitical tensions, Africa must fortify itself against disruptions that can reverse our gains and prevent us from accomplishing the targets set in AU’s Agenda 2063, Nigeria’s Agenda 2050 as well as our respective developmental and entrepreneurial aspirations. These threats require strategic foresight, policy coherence, and above all, continental solidarity amongst other considerations.

To quote a professional colleague, friend and brother Adedotun Suleiman who at his presentation at the Annual Directors Conference of the Chartered Institute of Directors Nigeria wisely counselled that:

“As we look ahead, we must also prepare for future disruptors, artificial intelligence, cyber risks, global trade fragmentation, protectionism, and climate transitions. Each will test the governance systems we build today.

So, let us lead with foresight.

Let us invest in resilience as deliberately as we invest in growth.

Let us make adaptability our competitive edge.

Because in a world where disruption is inevitable, resilience is the ultimate advantage.

The task of leadership is to build organisations resilient enough to absorb shocks and still function, adaptive enough to learn and transform, and strong enough to own their future. And as Nigerian directors, we are the architects of that resilience.

This also explains why we have today brought together policy makers, private sector leaders, financial institutions, development agencies, and academicians from within and outside Africa to chart practical pathways for maximising the immense opportunities presented by the African Continental Free Trade Area (AfCFTA) – the largest trade bloc in the world- and articulating strategies for mitigating the external threats to its implementation. Our discussions should please be frank, pragmatic, and solutions-driven. This gathering is an opportunity to forge stronger partnerships, generate actionable recommendations, and align our strategies for collective progress.

Let us seize this moment to reaffirm our faith in Nigeria’s ability to shape its own destiny towards achieving the $1 trillion GDP within the context of an integrated African Market whose current GDP of $3.4 trillion is projected to reach $8.87 trillion by 2043 and possibly exceed  $10 trillion by 2063 which is the terminal date of the African Union’s master plan, Agenda 2063. Let us be bold, visionary and collaborative. The road ahead may be challenging, our collective goal, a prosperous, self-reliant, and globally competitive Nigeria and African continent, is well within our reach.

•Bashorun Randle, FCA, OFR, chairman, NEPAD Business Group Nigeria delivered this paper at the High-Level Business Forum on Harnessing the Private Sector for Africa’s Economic Renaissance, at Eko Hotels and Suites, Lagos.