AfCFTA RECs Coordination Meeting in Malabo: A Pivotal Step Toward One African Market

AfCFTA RECs Coordination Meeting in Malabo: A Pivotal Step Toward One African Market

Malabo, Equatorial Guinea – July 9, 2025

Today, the vibrant city of Malabo, Equatorial Guinea, hosts a landmark event in Africa's journey toward economic integration: the African Continental Free Trade Area (AfCFTA) Regional Economic Communities (RECs) Coordination Meeting. Convened by the AfCFTA Secretariat, this gathering brings together senior officials from Africa's eight RECs, business councils, and key stakeholders to chart a transformative path for intra-African trade, regulatory harmonization, and private sector growth. As the continent stands at the cusp of economic revolution, this meeting signals a renewed commitment to creating a single, unified African market under the AfCFTA framework.

A Unified Vision for African Prosperity

The AfCFTA, launched on January 1, 2021, is the world’s largest free trade area by the number of participating countries, encompassing 54 of the African Union’s 55 member states, with a combined population of 1.3 billion and a GDP of approximately US$3.4 trillion. Its core mission is to eliminate trade barriers, boost intra-African trade, and foster sustainable economic development in line with the African Union’s Agenda 2063 vision of “An integrated, prosperous, and peaceful Africa.”

The Malabo meeting focuses on harmonizing trade regulations between RECs and the continental framework, addressing non-tariff barriers, and creating an enabling environment for private sector growth. With intra-African trade currently accounting for only 15% of the continent’s total trade—compared to 58% in Asia and 67% in Europe—the AfCFTA aims to boost this figure by 52.3% by 2025, potentially increasing Africa’s income by up to $450 billion by 2035 and lifting 30 million people out of extreme poverty.

Key Discussions in Malabo

The agenda in Malabo is ambitious yet pragmatic, addressing critical pillars for AfCFTA’s success:

• Harmonization of Trade Regulations: A primary focus is aligning REC policies with AfCFTA protocols to eliminate overlapping memberships and conflicting regulations. The RECs, including the East African Community (EAC), Economic Community of West African States (ECOWAS), and Southern African Development Community (SADC), serve as building blocks for the AfCFTA. Discussions aim to streamline rules of origin, customs procedures, and sanitary standards to facilitate seamless cross-border trade. For instance, harmonizing standards for agro-processing—a priority sector—could enable small African countries to integrate into global value chains.
• Boosting Intra-African Trade: The meeting emphasizes practical steps to enhance trade in value-added products. The AfCFTA’s Guided Trade Initiative (GTI), launched in October 2022, has already enabled duty-free trade in products like coffee, ceramic tiles, and processed foods among pilot countries such as Rwanda, Ghana, and Kenya. In Malabo, officials are exploring ways to expand the GTI to include 24 additional countries and new products like mushrooms, honey, and textiles, fostering regional value chains and reducing reliance on commodity exports.
• Private Sector Empowerment: The private sector, particularly micro, small, and medium-sized enterprises (MSMEs), is at the heart of AfCFTA’s vision. MSMEs account for 80% of Africa’s employment and 40% of GDP. The meeting highlights initiatives like the Pan-African Payment and Settlement System (PAPSS), which allows transactions in local currencies, saving the continent an estimated $5 billion annually in currency conversion costs. Business councils are advocating for simplified trade procedures and access to finance to help MSMEs tap into new markets.
• Infrastructure and Connectivity: Poor infrastructure remains a significant barrier to trade. The African Union’s Programme for Infrastructure Development in Africa (PIDA) is a focal point, with investments in transport, energy, and ICT critical to reducing trade costs. For example, the $65 billion in investment interest for PIDA Priority Action Plan 2 projects underscores the commitment to improving connectivity, particularly for landlocked countries.

Wins for Traders

The outcomes of the Malabo meeting are poised to deliver tangible benefits for African traders:

• Reduced Trade Costs: By eliminating tariffs on 90% of goods and addressing non-tariff barriers, traders will benefit from lower costs and faster customs clearance. The World Bank estimates that trade facilitation measures could drive $292 billion of the AfCFTA’s projected $450 billion income gains by 2035.
• Access to Larger Markets: The single African market offers traders access to 1.3 billion consumers, enabling economies of scale. For instance, a Ghanaian coffee exporter can now reach South African markets under preferential AfCFTA terms, as demonstrated by Rwanda’s recent coffee exports to Ghana.
• Support for MSMEs and Women Entrepreneurs: Initiatives like the UNDP’s Home-Grown Solutions Accelerator and the African Business Council’s programs for women and youth, such as “Hunting for Africa’s Unicorns,” will empower small-scale traders. Women-led businesses, like Rwanda’s Igire Coffee, are already benefiting from AfCFTA’s market access.
• Job Creation and Poverty Reduction: The AfCFTA is expected to create jobs in sectors like agro-processing, manufacturing, and services. By 2035, it could lift 50 million people out of extreme poverty and boost wages, particularly for women in labor-intensive industries.
• Innovation and Value Addition: Traders will benefit from policies promoting value-added production, such as processing cocoa into chocolate or minerals into finished goods. This shift reduces Africa’s dependence on volatile commodity markets and enhances competitiveness.

Challenges and the Path Forward

Despite the optimism, challenges remain. Harmonizing regulations across 54 diverse economies is complex, with disparities in development levels and infrastructure gaps posing hurdles. Only four countries have ratified the AfCFTA’s free movement of people clause, limiting labor mobility critical for a common market. Additionally, the continent faces an annual infrastructure funding gap of $68-108 billion, necessitating innovative financing mechanisms.

The Malabo meeting addresses these challenges by fostering collaboration between the AfCFTA Secretariat, RECs, and the private sector. The AfCFTA’s online mechanism for reporting non-tariff barriers and the African Trade Observatory are tools to enhance transparency and address trade bottlenecks. Moreover, the African Development Bank’s $318 billion recapitalization and Afreximbank’s trade financing initiatives signal robust financial support for AfCFTA implementation.

A Call to Action

As the Malabo meeting unfolds, it is a clarion call for African nations to seize the opportunities presented by the AfCFTA. Traders, from small-scale farmers to multinational corporations, stand to gain from a more integrated, competitive, and prosperous Africa. The commitment to harmonize regulations, empower the private sector, and invest in infrastructure is not just a policy discussion—it is a promise to transform lives and livelihoods across the continent.

The hashtag #CreatingOneAfricanMarket resonates as a vision and a reality taking shape in Malabo. As Africa dares to invent its future, the AfCFTA RECs Coordination Meeting is a testament to the continent’s resolve to build bridges, break barriers, and create a unified market that works for all Africans.

Ambassador Salim Kim Walusimbi is an AfCFTA Trade Advisor, Trade Diplomat and a thought leader on African economic integration and sustainable trade.