According to the IMF, the adoption and implementation of the AfCFTA are expected to boost intra-African trade by 52.3 percent by 2025, increase Africa's income by up to $450 billion by 2035, and lift 30 million Africans out of extreme poverty by creating new business dynamics that offer investors access to a population of 1.7 billion people, with combined business and consumer spending reaching $6.7 trillion by 2030.
Intra-regional trade performance has improved over the past three years, with the value of intra-African trade increasing from $169.9 billion in 2021 to $193.17 billion in 2023.3This growth is largely driven by synchronized efforts, including the implementation of the African Free Trade Agreement (AfCFTA). South Africa recorded the most significant growth in trade, while West Africa and North Africa contributed to the continent's trade. Regional champions played a crucial role in fostering cross-border transactions.
Additionally, according to The Business Forum, the manufacturing sector currently contributes only 10% of African GDP, compared to 20% in East Asia and the Pacific and 15 percent in Latin America and the Caribbean. However, the United Nations Industrial Development Organization (UNIDO) predicts that Africa's manufacturing output could increase from $500 billion currently to $1.7 trillion by 2030, potentially creating up to 14 million jobs.
At Oxano Capital, we recognize the transformative potential of the African Continental Free Trade Area (AfCFTA) in reshaping the continent’s economic landscape. We invite investors, entrepreneurs, and stakeholders to join us in harnessing these opportunities. Investing in the manufacturing and agri-processing sectors allows you to support an initiative that promotes sustainable development and economic empowerment in Africa while also offering significant rewards.