Side Event
Breaking Barriers and Boosting Trade: Making Regional Markets Work for Africa
Context
Africa has significant demographic and economic potential, with a population exceeding 1.2 billion—half under the age of 25, and abundant natural and strategic assets, yet the continent remains the least economically integrated regionally and globally. Intra‑African trade accounts for only 16–18 percent of total trade, far below levels observed in other regions. This gap reflects persistent structural constraints, including tariff and non‑tariff barriers; high transport, logistics, and border costs; fragmented markets; limited access to trade finance; weak regional supply chains; and major deficits in transport, energy, and digital connectivity. Regional agreements, most notably the African Continental Free Trade Area (AfCFTA) have established a strong policy framework, however, implementation has been uneven, and progress toward operational regional markets has been slower than anticipated.
Evidence from regional integration assessments and AfCFTA‑related analyses suggests that accelerating trade and competitiveness will require decisive and coordinated action in five priority areas: (i) reducing trade barriers; (ii) deepening regional integration; (iii) investing in regional infrastructure; (iv) strengthening trade finance and supply chains; and (v) building integrated digital and payments systems. Addressing these constraints is central to Africa’s industrialization agenda and its effective participation in global value chains. Through coordinated regional approaches supported by realistic domestic reforms can unlock economies of scale, strengthen local and regional value chains, crowd in private investment, and enhance resilience to external shocks.
Objectives
The side event, “Breaking Barriers and Boosting Trade: Making Regional Markets Work for Africa,” aims to provide a focused, policy‑oriented platform for African Governors, senior policymakers, and development partners to:
- Take stock of the most binding constraints to intra‑African trade;
- Identify institutional, policy, and coordination gaps that continue to limit effective implementation of the AfCFTA and regional integration initiatives; and
- Clarify priority actions and areas where scaled support from the World Bank Group (WBG) and the International Monetary Fund (IMF) can accelerate results.
The discussion will emphasize practical solutions, regional public goods, and the complementary roles of national governments, regional institutions, and the Bretton Woods Institutions
Role of the Bretton Woods Institutions in Regional Integration
The World Bank Group and the IMF have been key partners in advancing regional integration in Africa. The WBG supports cross‑border connectivity, trade facilitation, energy and digital integration, and human capital through large‑scale investments, while the IMF complements these efforts with policy advice, technical assistance, and macroeconomic coordination. As the AfCFTA implementation accelerates, closer alignment and scaling of WBG and IMF instruments around regional public goods, policy coordination, and private sector mobilization will be critical.
Proposed Discussion Points
To advance Africa’s regional integration agenda and unlock the full potential of the African Continental Free Trade Area (AfCFTA), the discussion could focus on the following priority areas:
- Scaling financing and deploying de‑risking instruments to catalyze private sector–led regional investments;
- Exploring options for strengthening institutional capacity through technical and financial assistance to support policy harmonization and regulatory alignment across countries;
- Pursuing approaches to expanding and modernizing trade facilitation, logistics, and border management systems to reduce trade costs and strategies to accelerate digital development and cross‑border systems integration, including payments and data platforms;
- Strengthening human capital in support of regional trade, competitiveness, and industrial development objectives; and
- Adopting measures to reinforce the institutional effectiveness of Regional Economic Communities (RECs) and the AfCFTA Secretariat to support implementation and coordination.