DRAFT
SPEAKING NOTES FOR
HIS EXCELLENCY WAMKELE MENE
SECRETARY-GENERAL, AfCFTA SECRETARIAT
OPENING REMARKS
CONFERENCE OF AFRICAN MINISTERS OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT
UNDER THE THEME
“ADVANCING THE IMPLEMENTATION OF THE AGREEMENT ESTABLISHING THE AFRICAN CONTINENTAL FREE TRADE AREA: PROPOSING TRANSFORMATIVE STRATEGIC ACTIONS”
Addis Ababa, ETHIOPIA
17TH MARCH 2025
Honourable Ministers of Finance, Planning and Economic Development,
Excellency Dr. Claver Gatete, Under-Secretary-General of the United Nations and Executive Secretary of the Economic Commission for Africa,
Honourable Central Bank Governors,
Excellencies,
Distinguished Guests,
Ladies and Gentlemen
It is a privilege to address you at this Conference of African Ministers of Finance, Planning and Economic Development.
I thank His Excellency, Dr. Claver Gatete, for this opportunity.
Let me congratulate you on the 57th Session of the Conference, which is being held under the theme, “Advancing the implementation of the Agreement Establishing the African Continental Free Trade Area: proposing transformative strategic actions.” This theme is not only timely but also vital to our collective vision of a prosperous and integrated Africa.
Indeed, advancing the implementation of the AfCFTA is more than an economic necessity; it is a strategic pathway to achieving inclusive growth, resilience, and sustainable development across the continent. As we convene today, we have an opportunity to reimagine Africa’s trade landscape, drive economic transformation, and build a sustainable future for all Africans.
Excellencies, dear colleagues
As you well know, the AfCFTA is built on a developmental integration approach, as outlined in Agenda 2063, with a strong focus on market integration, infrastructure development, and industrialization. These pillars are essential for boosting intra-African trade, driving economic growth, and supporting the continent’s structural transformation. More than just a trade agreement, the AfCFTA is Africa’s strategic project to promote industrialization and enable countries to move up the value chain in sectors where they have historically been raw material suppliers. This shift can reverse decades of underperformance, laying the foundation for a prosperous and self-sufficient Africa.
To achieve these objectives, we have established a solid legal framework for the AfCFTA through negotiated protocols on trade in goods and services, dispute settlement, investment, competition policy, intellectual property rights, digital trade, and women and youth in trade. By approving these protocols, our Heads of State and Government have signaled that these legal instruments must now become drivers of development.
The priority now is full implementation, delivering tangible results for SMEs, African investors, and economic operators. This is even more crucial in the face of global geopolitical tensions, including the ongoing war in Ukraine and conflicts in the Middle East, which have heightened political uncertainty and kept interest rates high, restricting investment.
These challenges highlight the urgency of increasing productivity and diversifying African economies. The operationalization of the AfCFTA presents a strategic opportunity to drive this transformation, and the progress made so far in its implementation while encouraging, must serve as a catalyst for redoubling our efforts.
Currently, 49 Member States have ratified the Agreement, providing a solid legal framework for trade liberalization and economic integration. This is a significant milestone, and we remain optimistic that the remaining Member States will soon join, unlocking the full potential of intra-African trade.
Importantly, the AfCFTA Secretariat has developed operational tools and targeted interventions to help the private sector effectively utilize the Agreement, identify investment opportunities, and integrate into key supply chains.
The key operational tools include the following:
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E-Tariff Book: A digitalized database providing importers and exporters with precise tariff information for each product and country, ensuring transparency and easier market access.
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Rules of Origin Manual: A comprehensive reference guide to ensure clarity and accessibility of information, enabling businesses to comply with the AfCFTA trade regulations seamlessly.
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Pan-African Payment and Settlement System (PAPSS): A cost-effective payment platform allowing businesses to pay and receive payments in local African currencies. While deployment is progressing, uptake has been slower than expected, and efforts are ongoing to accelerate adoption by commercial and central banks.
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AfCFTA Adjustment Fund: Established to address economic disparities and ensure equitable benefits from intra-African trade, the Fund has already mobilized $1 billion, with a target of $10 billion or more to support industrial development, manufacturing, and the establishment of AfCFTA trade aggregating companies in Member States, as directed by the AU Assembly.
One of our significant success stories is the launch of the Guided Trade Initiative (GTI). The GTI has been particularly successful, facilitating the exchange of value-added goods like processed foods and textiles among 39 participating countries. The number of certificates of origin issued has surged from 13 in 2022 to over 2,600, demonstrating the growth trade activity under the AfCFTA’s preferential tariff system.
Businesses are accessing new markets, reducing trade costs, and enhancing regional value chains, contributing to the broader goal of economic integration.
The AfCFTA is not only increasing trade volumes but also driving structural economic diversification, shifting economies away from commodity exports towards manufacturing and value-added industries.
For instance: South Africa’s trade with Kenya included manufactured goods like refrigerators, demonstrating a move toward higher-value exports. Rwanda exported packaged coffee to Ghana, while Tanzania exported coffee to Algeria, showcasing how traditional exports are transitioning to value- added products.
Notably, many of these transactions involve women-led SMEs and rural communities, reinforcing the inclusive impactof the AfCFTA. A female entrepreneur from Rwanda, for example, successfully exported packaged coffee to Algeria, underscoring the gender inclusiveness of the trade initiative.
Building on the GTI's success, the AfCFTA Secretariat is promoting the establishment of Trade Aggregating Companies to further boost intra-African trade. These companies help small producers achieve economies of scale and enhance market access. Trade Aggregating Companies are already operational in Egypt and Ghana, with plans to expand to across more member states. Afreximbank has committed $750 million to support this initiative, ensuring smoother trade flows and greater participation from SMEs.
While the GTI has achieved its initial objectives, sustaining the momentum requires stronger private sector participation. To facilitate this, the Secretariat is strengthening business-to-business networking through the Biashara Africa Project, which includes roadshows, trade forums, and investment promotion activities.
Through these initiatives, we aim to expand intra-African trade, enhance private sector engagement, and position the continent as a leader in global trade and industrialization.
The AfCFTA Secretariat, committed to unlock Africa’s trade potential, has partnered with TradeMark Africa (TMA) to streamline trade processes, enhance capacity-building, and develop digital infrastructure for a seamless trading environment. This collaboration is not only advancing the AfCFTA’s implementation but also laying the foundation for a modern, technology-driven trade ecosystem, strengthening Africa’s trade infrastructure and digital trade backbone.
A key milestone in this partnership is the development of the AfCFTA Electronic Certificate of Origin (E-CO) framework, a critical step toward digitizing trade facilitation. Although the system is yet to be implemented, the foundational work, supported by TMA, is crucial in digitising the certification process, ensuring efficiency, transparency and seamless trade facilitation across the continent.
In addition, joint field assessments along the Abidjan - Lagos Corridor have led to infrastructure improvements at the Akanu-Noepe Border posts between Ghana and Togo, while preparatory work is underway at the Noe-Elubo border post between Cote D’Ivoire and Ghana. Through this collaboration, the AfCFTA and TMA, backed by FCDO’s financial support, is paving the way for a more integrated, efficient, and competitive African trade environment.
The Secretariat is also actively implementing its private sector engagement strategy, focusing on four high-potential sectors: Agriculture and Agro- processing, Automotive, Pharmaceuticals, and Transport & Logistics. These sectors were selected based on their strong potential to meet local demand with local production and are expected to see rapid growth in both production and trade volumes.
To drive strategic regional value chains, the Secretariat is working closely with Member States and partners to attract investment and accelerate industrial development. In collaboration with organizations like the Mastercard Foundation and McKinsey, we have designed a comprehensive strategy to transform these key sectors.
Notable initiatives include a $46 million fisheries value chain development project funded by the Mastercard Foundation, aimed at strengthening regional fish trade capacities, and support to the Government of Zimbabwe in expanding its Strategic Grains Reserve Systems by 225,600 MT to enhance domestic food security.
Additionally, the Secretariat is partnering with the Ministry of Trade and Industry of Rwanda to develop a continental Agri-Trade Action Plan. This initiative aims to accelerate regional value chain development and industrialize food products, as well as strengthen the trade environment and guide efforts toward the full liberalization of agricultural trade.
In the pharmaceutical sector, we are advancing a pooled procurement mechanism, coordinated by African Union agencies, to support affordable access to medicines. Additionally, we are implementing the Intellectual Property Rights Protocol, a key step in developing a robust generic pharmaceutical manufacturing base in Africa, ensuring greater self- sufficiency and resilience in the healthcare sector.
For the automotive industry, the Secretariat is collaborating with Afreximbank, the African Association of Automotive Manufacturers (AAAM), and the African Organization for Standardization (ARSO) to strengthen local vehicle and components manufacturing. This includes initiatives focused on the beneficiation of critical minerals essential for New Energy Vehicles (NEVs), positioning Africa as a key player in the global automotive value chain.
We have established Biashara Afrika, a platform for business-to-business and business-to-government dialogue. The second edition of Biashara Afrika, held in Kigali, Rwanda in October 2023, brought together 1400+ participants from 63 countries, with 120 SMEs exhibitors showcasing AfCFTA-driven opportunities. The event facilitated promising partnerships in market access, particularly through AfCFTA Trading Companies, reinforcing the private sector’s role in driving intra-African trade and economic integration.
Excellencies, dear colleagues
To realize the full potential of the AfCFTA, we must build robust financial systems that expand access to trade finance, credit guarantees, and innovative financial solutions. The estimated $80 billion trade finance gap is a critical barrier that disproportionately affects SMEs, women, and youth-led enterprises. Banks and financial institutions have a pivotal role to play in bridging this gap by facilitating cross-border payments, risk management, and access to capital.
The PAPSS is a game-changer in this regard. By simplifying cross-border transactions and reducing reliance on foreign currencies, PAPSS will enhance trade efficiency and promote financial inclusion. I urge our financial institutions to leverage PAPSS and digital banking platforms to support SMEs and informal traders.
Furthermore, our ability to advance the AfCFTA depends heavily on our infrastructure readiness. Investing in trade-supporting infrastructure, including ports, transport corridors, energy, and digital networks, must be a priority. Public-private partnerships (PPPs) will be essential in mobilizing resources to close the infrastructure gap that constrains trade across the continent.
We must also accelerate the development of digital public infrastructure to support cross-border data transfers, digital payments, and digital identities. The upcoming AfCFTA Digital Identity Project (Digi-Pass) is a step towards streamlining trade processes and enhancing interoperability across borders.
Harmonizing trade regulations is crucial to creating a predictable business environment. The adoption of the AfCFTA Protocol on Investment provides a unique opportunity to attract foreign direct investment (FDI) into priority sectors such as agro-processing, manufacturing, and digital services. By reducing non-tariff barriers and aligning standards and regulations, we can make intra-African trade more seamless and competitive.
Empowering SMEs, women, and youth-led enterprises is crucial to the successful implementation of the AfCFTA. To ensure their competitiveness, we must scale-up capacity-building programmes, equipping these businesses with the skills, resources, and market knowledge needed to thrive. The Protocol on Women and Youth in Trade is a landmark achievement, and its successful implementation requires effective, targeted initiatives that grow access to finance, markets, and technical support. As the Secretariat, we are committed to working with Member States, development partners, and the private sector to ensure that this Protocol translates into meaningful economic opportunities, fostering a more inclusive and dynamic trade environment across Africa Excellencies, dear colleagues
Finance, Planning, and Economic Development Ministers are key to the success of the AfCFTA. Your leadership in ensuring macroeconomic stability, mobilizing resources, aligning national policies, and removing financial barriers is vital to unlocking Africa’s full trade potential. A stable economic environment fosters business growth, attracts investment, and enables seamless trade integration. Through your collective efforts, the AfCFTA will evolve from a policy framework into a driver of industrialization, investment, and inclusive growth, positioning Africa as a key player in global trade.
As we move forward, strong coordination between Finance Ministers and other stakeholders will be important to ensure the AfCFTA delivers lasting economic benefits for all Africans. The AfCFTA Secretariat remains committed to working with all stakeholders to accelerate implementation and maximize the Agreement’s impact. Our focus will be on advocating for supportive policies, strengthening partnerships, providing technical assistance, monitoring implementation, promoting investment and trade facilitation, and fostering inclusive and sustainable development.
Achieving the full potential of the AfCFTA requires continuous refinement of our strategies to adapt to emerging challenges and opportunities. This calls for forward-thinking and proactive policy adjustments.
I am confident that this Conference of African Ministers of Finance, Planning, and Economic Development will identify priority interventions and reinforce the importance of coordinated efforts to ensure that our resources and initiatives are optimally aligned for shared prosperity.
Thank you.