Africa Advances Regional Integration Despite Operating Below Potential

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Afreximbank Hq
Afreximbank Hq

Africa’s economic integration is gaining momentum through new trade policies and infrastructure investments, but the continent remains far from reaching its full potential, according to Afreximbank’s latest Regional Integration and Market Access Insights report.

The African Export-Import Bank’s September 2025 analysis reveals the continent currently operates at just one third of its integration capacity, with an overall score of 0.327 out of 1. This means despite recent progress, Africa still faces significant hurdles in creating a truly unified economic space that can compete globally.

South Africa leads the integration rankings with a score of 0.63, followed by Kenya, Rwanda, Morocco, Mauritius, and Egypt. However, even the top performers fall well short of full integration, highlighting how much work remains across the entire continent.

The strongest integration dimension involves the free movement of people, which scored 0.441. Regional frameworks like the Economic Community of West African States and visa liberalization policies in East and Southern Africa have made it easier for Africans to travel across borders for business and personal reasons. This is tangible progress, even if other areas lag behind.

Macroeconomic cooperation and trade policies show promise too, supported by regional monetary unions and various free trade arrangements. But infrastructure and productive integration remain weak points, both scoring barely above 0.20. This underscores a critical gap: without better roads, railways, and industrial linkages, trade flows will continue facing costly bottlenecks.

Major infrastructure projects offer hope for change. The Lobito Corridor, a rail network connecting Angola, the Democratic Republic of Congo, and Zambia to the Atlantic coast, received $250 million from the U.S. Development Finance Corporation. The European Union separately committed funding for the corridor’s rehabilitation, while the African Development Bank pledged $500 million. These investments target reducing logistics costs and accelerating exports of copper and cobalt, minerals crucial for global energy transitions.

Another key project involves upgrading the Douala to Ndjamena Corridor, which links Cameroon and Chad. Border systems at Chirundu and Kazungula have also seen improvements, streamlining customs processes that previously slowed cross-border commerce to a crawl.

Trade policy reforms complement these infrastructure gains. Namibia marked a historic milestone by completing its first AfCFTA-guided export shipment, sending 45,000 tonnes of salt to Nigeria. While seemingly modest, this transaction demonstrated the African Continental Free Trade Area’s operational viability and showed that continental trade frameworks can translate from paper into practice.

Meanwhile, Algeria became the 18th member to join the Pan-African Payment and Settlement System in August 2025, expanding the cross-border payment infrastructure designed to reduce Africa’s dependency on external currencies like the US dollar. PAPSS allows businesses to settle transactions in local currencies, cutting transaction costs and keeping more value within African economies.

International partners are also taking notice. The European Union launched a €200 million Africa Trade Competitiveness and Market Access programme to boost regional trade and strengthen value chains across the continent. This initiative works with regional economic communities to improve standards, enhance product quality, and help small businesses access larger markets.

China announced a zero-tariff policy covering imports from all 53 African countries with diplomatic relations, expanding beyond its previous framework that benefited only least developed nations. This unilateral opening could reshape African export patterns and provide new market opportunities, particularly for agricultural products and light manufactures.

However, external uncertainties temper this optimistic picture. The African Growth and Opportunity Act’s future remains unclear as the United States debates renewal. AGOA has provided duty-free access to American markets for over two decades, and its potential expiration would disrupt established trade relationships.

Additionally, the EU’s Carbon Border Adjustment Mechanism introduces new compliance requirements for African exporters. Meeting these environmental standards will require investment and technical capacity that many countries currently lack. Afreximbank warns these external pressures make deepening intra-African trade even more urgent.

The bank emphasizes execution will determine whether these initiatives succeed. Africa must scale up AfCFTA utilization beyond symbolic shipments, expand local currency settlements through PAPSS, and accelerate infrastructure investment. Political commitment matters, but translating policy into operational reality matters more.

The report’s conclusion strikes a cautiously optimistic tone. If Africa can bridge the gap between ambitious plans and practical delivery, the continent could transition from fragmented progress to genuine structural transformation. Stronger value chains, more predictable trade flows, and greater bargaining power in global markets all remain achievable, but only if leaders and businesses follow through on commitments already made.

For now, Africa sits at a crossroads. The foundations for deeper integration are being laid through infrastructure projects, payment systems, and trade agreements. Whether these foundations support sustained growth or remain underutilized infrastructure depends entirely on what happens next.

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